Top 5 Zacks #1 Ranked High Yield Mutual Funds - Best of Funds
14 2월 2012 - 10:35PM
Zacks
Investors with a reasonably high appetite for risk, in pursuit
of significantly high income levels, would do well to consider high
yield bonds. This category of fixed-income securities generally
represents corporate bonds with low ratings, often below investment
grade. A significant amount of risk is therefore associated with
these investments and mutual funds are the best option to invest in
these instruments. By investing in a well diversified portfolio of
such securities they successfully lower the associated risk for the
investor.
Below we will share with you 5 top rated high yield mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
these mutual funds to outperform their peers in the future. To view
the Zacks Rank and past performance of all high yield funds,
investors can click here to see the complete list of funds.
MEMBERS High Income A (MHNAX) seeks high current income
with a secondary objective of capital growth. The fund utilizes the
majority of its assets to purchase high yield fixed-income
securities with low ratings. Not more than 25% of its assets may be
invested in any one industry. The high yield mutual fund has a five
year annualized return of 5.7%.
The high yield mutual fund has a minimum initial investment of
$1,00 and an expense ratio of 1.00% compared to a category average
of 1.15%.
Waddell & Reed High-Income A (UNHIX) invests the
majority of its assets in a wide range of high yield debt
instruments, the risk associated with which is in consonance with
the fund’s objective. The fund purchases fixed-income securities
without regard to their maturity period. The high yield mutual fund
has a five year annualized return of 6.46%.
William M. Nelson is the fund manager and he has managed this
high yield mutual fund since 2008.
Fifth Third High Yield Bond A (FTYAX) seeks a high level
of income. The fund invests a large share of its assets in debt
securities which provide high yields but are rated below investment
grade. The high yield mutual fund has a five year annualized return
of 7.19%.
The high yield mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 0.99% compared to a category average
of 1.15%.
Vanguard High-Yield Corporate (VWEHX) invests the
majority of its assets in corporate bonds assigned the lowest
investment grade rating by a renowned bond rating agency. Up to 20%
of its assets may be utilized to hold securities rated below
investment grade. The high yield mutual fund has a five year
annualized return of 6.11%.
As of December 2011, this high yield mutual fund held 366
issues, with 1.74% of its total assets invested in Bank of America
Mortgage.
Federated High-Income Bond A (FHIIX) seeks current
income. The fund invests heavily in a wide range of high-yield
corporate bonds with lower ratings. The high yield mutual fund has
a five year annualized return of 6.76%.
Mark E. Durbiano is the fund manager and he has managed this
high yield mutual fund since 1987.
To view the Zacks Rank and past performance of all high yield
mutual funds, investors can click here to see the complete list of
funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
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