We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Top-Ranked Short-Term Government Bonds for Risk-Free Gains
Read MoreHide Full Article
Mutual funds investing in debt securities are among the most secure options for earning regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to one’s portfolio with a large proportion of equity, while providing dividends more frequently than individual bonds.
U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
Meanwhile, a short-term government bond fund is a mutual fund limited by its investment objectives and fund bylaws to invest primarily in the short-term obligations of the federal government or its agencies. Depending on the fund's definition, the short term can be up to five years.
SEI Short-Duration Government fund seeks to preserve principal value and maintain liquidity while providing current income. TCSGX invests most of its assets in U.S. Treasury obligations and obligations issued or guaranteed as principal and interest by agencies or instrumentalities of the U.S. government, including mortgage-backed securities and repurchase agreements collateralized by such obligations.
SEI Short-Duration Government has three-year annualized returns of 1.5%. As of the end of July 2024, TCSGX held 28.9% of its net assets in miscellaneous bonds.
Loomis Sayles Ltd Term Govt and Agency fund seeks a high current return consistent with preservation of capital. NEFLX invests most of its assets in investments issued or guaranteed by the U.S. government, its agencies, or instrumentalities.
Loomis Sayles Ltd Term Govt and Agency has three-year annualized returns of 1.3%. NEFLX has an expense ratio of 0.70%.
Vanguard Short-Term Federal Inv fund seeks a high level of interest income. VSGBX invests primarily in short-term securities issued by U.S. government agencies.
Vanguard Short-Term Federal Inv has three-year annualized returns of 0.8%. Brian W. Quigley has been one of the fund managers of VSGBX since 2015.
Image: Bigstock
3 Top-Ranked Short-Term Government Bonds for Risk-Free Gains
Mutual funds investing in debt securities are among the most secure options for earning regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to one’s portfolio with a large proportion of equity, while providing dividends more frequently than individual bonds.
U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
Meanwhile, a short-term government bond fund is a mutual fund limited by its investment objectives and fund bylaws to invest primarily in the short-term obligations of the federal government or its agencies. Depending on the fund's definition, the short term can be up to five years.
Below, we share with you three top-ranked short-term government bond funds, viz., SEI Short-Duration Government (TCSGX - Free Report) , Loomis Sayles Ltd Term Govt and Agency (NEFLX - Free Report) and Vanguard Short-Term Federal Inv (VSGBX - Free Report) . Each has 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 municipal bond funds.
SEI Short-Duration Government fund seeks to preserve principal value and maintain liquidity while providing current income. TCSGX invests most of its assets in U.S. Treasury obligations and obligations issued or guaranteed as principal and interest by agencies or instrumentalities of the U.S. government, including mortgage-backed securities and repurchase agreements collateralized by such obligations.
SEI Short-Duration Government has three-year annualized returns of 1.5%. As of the end of July 2024, TCSGX held 28.9% of its net assets in miscellaneous bonds.
Loomis Sayles Ltd Term Govt and Agency fund seeks a high current return consistent with preservation of capital. NEFLX invests most of its assets in investments issued or guaranteed by the U.S. government, its agencies, or instrumentalities.
Loomis Sayles Ltd Term Govt and Agency has three-year annualized returns of 1.3%. NEFLX has an expense ratio of 0.70%.
Vanguard Short-Term Federal Inv fund seeks a high level of interest income. VSGBX invests primarily in short-term securities issued by U.S. government agencies.
Vanguard Short-Term Federal Inv has three-year annualized returns of 0.8%. Brian W. Quigley has been one of the fund managers of VSGBX since 2015.
To view the Zacks Rank and the past performance of all short-term government bond mutual funds, investors can click here to see the complete list of short-term government bond mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>