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3 Top Rated High-Yield Bond Funds to Secure Your Portfolio
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High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies, which are considered to have a weaker financial condition but benefit as the economy moves north.
Although high-yield bonds are more exposed to credit risk, these have less exposure to interest rate risk, making them a differentiated source of return. Despite the headwinds faced during Fed’s tightening of monetary policy, with indications coming in from the Fed that it might slow down its steep rate of hikes, these bonds are poised to grow.
Fidelity Series Floating Rate High Income Fund invests most of its net assets in floating rate loans, lower-quality debt securities also referred to as high-yield debt securities, companies in distress or uncertain financial condition, money market, investment-grade debt securities, and repurchase agreements. FFHCX advisors invest in both foreign and domestic issues.
Fidelity Series Floating Rate High Income Fund has three-year annualized returns of 3.4%. As of the end of September 2022, FFHCX held 62.14% of its net assets in miscellaneous bonds.
American Beacon SiM High Yld Opps Fund invests most of its assets, along with borrowings, if any, in domestic and foreign (including emerging market) issues of non-investment grade securities and financial instruments that provide exposure to non-investment grade securities. SHOAX advisors can invest in debt securities with varying maturity periods and ratings.
American Beacon SiM High Yld Opps Fund has three-year annualized returns of 2.2%. SHOAX has an expense ratio of 0.76% compared with the category average of 0.95%.
Neuberger Berman Floating Rate Income Fund invests most of its net assets in floating-rate securities, loans and other investments in companies that provide investment exposure to such floating-rate securities. NFIAX chooses to invest in floating rate senior secured loans and below investment grade securities issued in U.S. dollars by U.S. and foreign issuers.
Neuberger Berman Floating Rate Income Fund has three-year annualized returns of 1.7%. Joseph P. Lynch has been the fund manager of NFIAX since December 2009.
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3 Top Rated High-Yield Bond Funds to Secure Your Portfolio
High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies, which are considered to have a weaker financial condition but benefit as the economy moves north.
Although high-yield bonds are more exposed to credit risk, these have less exposure to interest rate risk, making them a differentiated source of return. Despite the headwinds faced during Fed’s tightening of monetary policy, with indications coming in from the Fed that it might slow down its steep rate of hikes, these bonds are poised to grow.
Below, we share with you three top-ranked high-yield bond mutual funds, namely Fidelity Series Floating Rate High Income Fund (FFHCX - Free Report) , American Beacon SiM High Yld Opps Fund (SHOAX - Free Report) and Neuberger Berman Floating Rate Income Fund (NFIAX - 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.
Fidelity Series Floating Rate High Income Fund invests most of its net assets in floating rate loans, lower-quality debt securities also referred to as high-yield debt securities, companies in distress or uncertain financial condition, money market, investment-grade debt securities, and repurchase agreements. FFHCX advisors invest in both foreign and domestic issues.
Fidelity Series Floating Rate High Income Fund has three-year annualized returns of 3.4%. As of the end of September 2022, FFHCX held 62.14% of its net assets in miscellaneous bonds.
American Beacon SiM High Yld Opps Fund invests most of its assets, along with borrowings, if any, in domestic and foreign (including emerging market) issues of non-investment grade securities and financial instruments that provide exposure to non-investment grade securities. SHOAX advisors can invest in debt securities with varying maturity periods and ratings.
American Beacon SiM High Yld Opps Fund has three-year annualized returns of 2.2%. SHOAX has an expense ratio of 0.76% compared with the category average of 0.95%.
Neuberger Berman Floating Rate Income Fund invests most of its net assets in floating-rate securities, loans and other investments in companies that provide investment exposure to such floating-rate securities. NFIAX chooses to invest in floating rate senior secured loans and below investment grade securities issued in U.S. dollars by U.S. and foreign issuers.
Neuberger Berman Floating Rate Income Fund has three-year annualized returns of 1.7%. Joseph P. Lynch has been the fund manager of NFIAX since December 2009.
To view the Zacks Rank and the past performance of all high-yield bond funds, investors can click here to see the complete list of high-yield bond funds.
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