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3 Top-Rated High-Yield Bond Funds for Steady Returns
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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 the 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 Capital & Income Fund invests its net assets in domestic and foreign equity and debt securities, which include lower-quality debt securities, defaulted securities and also in companies in troubled or uncertain financial conditions. FAGIX advisors choose to invest based on the fundamental analysis of each issuer's financial condition, industry position and market as well as economic conditions.
Fidelity Capital & Income Fund has three-year annualized returns of 5.1%. As of the end of October 2022, FAGIX held 53.06% of its net assets in miscellaneous bonds.
Buffalo High Yield Fund invests most of its assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies preferable with intermediate-term maturities. BUFHX advisors also invest a small portion of its net assets in investment-grade debt securities, U.S. Treasury Securities, money market funds and equity investments, including dividend-paying stocks, convertible stocks and preferred stocks.
Buffalo High Yield Fundhas three-year annualized returns of 3.6%. BUFHX has an expense ratio of 0.87% compared with the category average of 0.95%.
Manning & Napier High Yield Bond Series invests most of its net assets in below investment grade and other financial instruments like derivative instruments, exchange-traded funds (ETFs), and bank loans, which have similar economic characteristics. MNHYX advisors may also consider investing in U.S. dollar-denominated fixed income securities issued by U.S. and foreign corporations and governments, including those in emerging markets
Manning & Napier High Yield Bond Series has three-year annualized returns of 3.5%. Marc Bushallow has been the fund manager of MNHYX since September 2009.
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3 Top-Rated High-Yield Bond Funds for Steady Returns
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 the 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 Capital & Income Fund (FAGIX - Free Report) , Buffalo High Yield Fund (BUFHX - Free Report) and Manning & Napier High Yield Bond Series (MNHYX - 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 Capital & Income Fund invests its net assets in domestic and foreign equity and debt securities, which include lower-quality debt securities, defaulted securities and also in companies in troubled or uncertain financial conditions. FAGIX advisors choose to invest based on the fundamental analysis of each issuer's financial condition, industry position and market as well as economic conditions.
Fidelity Capital & Income Fund has three-year annualized returns of 5.1%. As of the end of October 2022, FAGIX held 53.06% of its net assets in miscellaneous bonds.
Buffalo High Yield Fund invests most of its assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies preferable with intermediate-term maturities. BUFHX advisors also invest a small portion of its net assets in investment-grade debt securities, U.S. Treasury Securities, money market funds and equity investments, including dividend-paying stocks, convertible stocks and preferred stocks.
Buffalo High Yield Fundhas three-year annualized returns of 3.6%. BUFHX has an expense ratio of 0.87% compared with the category average of 0.95%.
Manning & Napier High Yield Bond Series invests most of its net assets in below investment grade and other financial instruments like derivative instruments, exchange-traded funds (ETFs), and bank loans, which have similar economic characteristics. MNHYX advisors may also consider investing in U.S. dollar-denominated fixed income securities issued by U.S. and foreign corporations and governments, including those in emerging markets
Manning & Napier High Yield Bond Series has three-year annualized returns of 3.5%. Marc Bushallow has been the fund manager of MNHYX since September 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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