Top 5 Highest Yielding Government Bond Mutual Funds - Highest Yielding Zacks #1 Ranked Funds

Below we will share with you the 5 highest yielding Zacks #1 ranked government bond 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 government bond funds, then click here.

Sit US Government Securities (SNGVX) seeks to provide current income and safety of the capital invested. The fund only purchases U.S. government securities or instruments issued by its agencies or instrumentalities. A large share of its assets is invested in pass-through securities. The government bond mutual fund returned 4.95% over the last one year period.

As of June 2011, this government bond mutual fund held 685 issues, with 3.38% of its total assets invested in Vendee Mtg Tr 2011-1 CMO 3.75%.

Legg Mason Western Asset Government Securities A (SGVAX) invests the majority of its assets in securities issued by the U.S. government and its agencies. U.S. Treasury securities and debt securities issued by federal agencies are some of the categories the fund invests in. The government bond mutual fund has a three year annualized return of 7.47%.

The government bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.01% compared to a category average of 0.99%.

Transamerica Partners IPS (DVIGX) seeks real return. The fund invests the majority of its assets in inflation-protected securities and related investments. The fund utilizes an underlying mutual fund to purchase these securities which are instruments issued by the U.S. government and its agencies. The government bond mutual fund returned 7.05% over the last one year period.

The Fund Manager is Martin Hegarty and he has managed this government bond mutual fund since 2010.

GMO Domestic Bond III (GMDBX) invests heavily in fixed-income securities with economic linkages to the U.S, primarily via other funds from GMO. The fund aims to achieve total returns higher than its benchmark, the Barclays Capital U.S. government Index. The government bond mutual fund has a ten year annualized return of 5.62%.

The government bond mutual fund has an expense ratio of 0.20% compared to a category average of 0.94%.

T. Rowe Price Inflation Protected Bond (PRIPX) seeks income and protection from inflation. The fund invests a large proportion of its assets in inflation-protected bonds. The fund focuses on purchasing bonds issued by the US Treasury. The government bond mutual fund returned 7.8% over the last one year period.

The Fund Manager is Daniel O. Shackleford and he has managed this government bond mutual fund since 2002.

To view the Zacks Rank and past performance of all government bond mutual funds, then click here.

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.