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3 Long-Term Government Bond Funds for Volatile Markets

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Risk-averse investors looking to earn a stable and regular income may consider long-term bond mutual funds. These mutual funds are believed to provide regular income while protecting the capital invested.

While mutual funds from this category seek to provide dividends more frequently than individual bonds, they offer greater stability than those primarily focusing on equity securities. Long-term bond funds, which have an average maturity period between 10 years and 30 years, generally offer safer options in comparison to short and mid-term ones.

Below, we share with you three top-ranked long-term government bond funds, namely, Calvert Core Bond Fund Class A (CLDAX - Free Report) , Hussman Strategic Total Return Fund (HSTRX - Free Report) and Vanguard Long Term Treasury Fund (VUSTX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Calvert Core Bond Fund Class A invests most of its net assets in U.S. dollar-denominated debt securities, foreign debt securities and American Depositary Receipts. CLDAX also invests a small portion of its net assets in below-investment-grade high-yield debt instruments, commonly known as junk bonds and distressed instruments that are in default.

Calvert Core Bond Fund Class A has five-year annualized returns of 2.0%. As of the end of June 2022, CLDAX had 36.93% of its net assets invested in Miscellaneous Bonds.

Hussman Strategic Total Return Fund invests its net assets in fixed-income securities, such as Treasury bonds, notes, bills, treasury inflation-protected securities, U.S. treasury strips, U.S. government agency securities, etc. HSTRX also invests in investment-grade corporate debt issued by Standard & Poor's Global, Moody's Investors Service, or other independent rating organizations.

Hussman Strategic Total Return Fundhas three-year annualized returns of 1.9%. HSTRX has an expense ratio of 0.75% compared with the category average of 1.29%.

Vanguard Long Term Treasury Fund invests most of its assets in U.S. Treasury securities, which include bills, bonds and notes issued by the U.S. Treasury. VUSTX advisor expects to maintain a dollar-weighted average maturity of 15 to 30 years.

Vanguard Long Term Treasury Fund has 10-year annualized returns of 0.1%. John Madziyire has been one of the fund managers of VUSTX since November 2021.

To view the Zacks Rank and the past performance of all long-term government bond funds, investors can click here to see the complete list of long-term government bond funds.

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