Introduction
High yield bond fund is part of taxable bond mutual fund. This fixed income fund provides high regular income to investors. It invests in non-investment grade bonds and other high income-producing debts or obligations.
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| Top High Yield Mutual Funds |
These top high yield bond mutual funds are selected based on its long term track record and its sales load. There is no sales load for these best bond mutual funds. You can find the fund review and other fund information such as fund management, track record, expenses, yield, top holding, etc.
The 6 best high yield bond mutual funds of 2012 are:
- Fidelity High Income (SPHIX)
- TIAA-CREF High-Yield Retail (TIYRX)
- Neuberger Berman High Income (NHINX)
- Fidelity Capital & Income (FAGIX)
- Metropolitan West High Yield M (MWHYX)
- USAA High Income (USHYX)
The Fidelity High Income fund invests mainly in income-producing debt securities, preferred stocks, and convertible bonds. It may invest in defaulted bond, common stocks, and troubled companies. Fred Hoff has managed this taxable bond fund. The annual expense ratio is 0.76%. The portfolio turnover rate is 35%.
Previous: Top High Yield Bond Mutual Funds of 2011
This best high yield bond fund is rated with 4 star and gold rating. It has a 5-year average return of 7.4%. In 2009, the fund has an annual total return of 51.46%. You can buy this fund with $2,500 initial funding from various brokerages. The 3-year beta risk is -0.18.
2. TIAA-CREF High-Yield Retail (TIYRX)
The investment objective of TIAA-CREF High-Yield fund is to provide high current income and capital growth. It has a distribution rate of 5.84%. The total net assets are $1.5 billion. It has a low expense ratio of 0.66%. The average effective duration is 4.85 years.
Ranked with 4 star rating, this top high yield bond mutual fund has returned 13.91% over the past 3 year, and 7.82% over the past 5 year. Its best 1 year total return is 41.56% in 2009. The top 3 holdings are Hca 7.5%, Ford Motor Co Del 7.45%, and Dineequity 9.5%.
3. Neuberger Berman High Income (MUTF: NHINX)
This Neuberger Berman High Income fund objective is to achieve high total return with capital preservation. It uses its assets to buy high yield bonds with weighted average maturity between 5 and 10 years. The fund managers are Ann H. Benjamin, Thomas P. O'Reilly, and Russ Covode. The current yield is 6.37%. This no load fund has $2.9 billion of total assets.
As of July 2012, the average effective duration is 3.99 years and the average effective maturity is 6.60 years. The average credit quality is B (non-investment grade). The top 3 sectors are corporate bond (92.43%), bank loan (1.34%), and asset-backed (0.15%).
This 4-star bond fund has returned 14.87% over the past 3 year, and 8.43% over the past 5 year. Morningstar analysts have ranked this fund with bronze rating.
Note: The fund may be limited to new investors
4. Fidelity Capital & Income (FAGIX)
Fidelity Capital & Income fund is another top Fidelity fund in high yield bond category. This fund focuses its assets in stocks and bonds. It may invest in domestic and foreign issuers. Mark Notkin is the fund manager since 2003. The current dividend yield is 6.38%. The expense ratio is 0.77%.
The year-to-date return is 7.04%. Morningstar gives 4 stars and silver rating for this best no load high yield fund. The top 4 sectors are corporate bond, bank loan, asset-backed, and preferred.
5. Metropolitan West High Yield M (MWHYX)
The Metropolitan West High Yield fund utilizes its assets to purchase high yield fixed income securities which are rated below investment grade or are unrated. The dividend yield is 7.20%. The total assets are $2.2 billion. Its expense ratio is 0.82%.
This best high yield bond fund can be purchased with $5,000 initial funding. There are 90 brokerages offered this fund. The brokerages are Pershing FundCenter, JPMorgan, Firstrade, Scottrade NTF, etc. Ranked with 4 star rating, it has a 5-year annualized return of 7.60%. This bond fund has its worst 1 year total return of -21.59% in 2008.
6. USAA High Income (Ticker: USHYX)
This USAA High Income fund is another top no load high yield bond mutual fund. Its objective is to provide attractive total return through high income and capital growth. It may invest in junk bonds, convertible securities, leveraged loans, and preferred stocks. The fund managers are R. Matthew Freund and Julianne Bass. The expense ratio is 0.90% per year. The annual holding turnover rate is 54%.
As of July 2012, the top 4 holdings are iShares iBoxx $ High Yield Corporate Bond, SPDR Barclays Capital High Yield Bond, Ppl Cap Fdg FRN, and Lincoln National Corp Ind FRN. The YTD return is 6.15%. It has returned 16.49% over the past 3 year, 6.63% over the past 5 year, and 8.68% over the past decade.
Other best high yield corporate bond mutual funds:
- T. Rowe Price High-Yield Fund (PRHYX)
- Vanguard High-Yield Corporate Fund (VWEHX)
Fund Performance
| No | Fund Description | Ticker | Expenses | YTD Return % | 1 Year Return % | 3 Year Return % | 5 Year Return % | 10 Year Return % |
|---|---|---|---|---|---|---|---|---|
| 1 | Fidelity High Income | SPHIX | Average | 6.22% | 6.10% | 14.72% | 7.40% | 9.37% |
| 2 | TIAA-CREF High-Yield Retail | TIYRX | Below Average | 5.68% | 8.00% | 13.91% | 7.82% | - |
| 3 | Neuberger Berman High Income | NHINX | Average | 5.85% | 5.83% | 14.87% | 8.43% | 7.82% |
| 4 | Fidelity Capital & Income | FAGIX | High | 7.04% | 1.83% | 17.40% | 7.14% | 11.44% |
| 5 | Metropolitan West High Yield M | MWHYX | Below Average | 5.25% | 2.22% | 12.76% | 7.60% | - |
| 6 | USAA High Income | USHYX | Average | 6.15% | 3.61% | 16.49% | 6.63% | 8.68% |
| 7 | T. Rowe Price High-Yield | PRHYX | Average | 6.06% | 5.56% | 14.38% | 6.79% | 8.52% |
| 8 | Vanguard High-Yield Corporate Inv | VWEHX | Below Average | 5.81% | 8.70% | 14.11% | 6.74% | 7.28% |
| 9 | Transamerica Partners Instl Hi Yld Bd | DIHYX | Above Average | 6.17% | 6.72% | 15.95% | 6.85% | - |
| 10 | Touchstone High Yield Y | THYYX | Average | 5.16% | 7.24% | 13.93% | 7.72% | 9.12% |
| 11 | Fifth Third High Yield Bond I | FTYIX | Average | 5.13% | 6.51% | 13.95% | 7.89% | - |
| 12 | Janus High-Yield D | JNHYX | Below Average | 6.26% | 6.40% | 14.58% | 7.17% | 7.88% |
| 13 | Invesco High-Yield Secs Y | HYLDX | Average | 8.88% | 7.13% | 14.05% | 7.13% | 7.89% |
| 14 | Invesco High Yield Investor | HYINX | Above Average | 7.82% | 6.26% | 14.96% | 6.92% | - |
| 15 | Buffalo High-Yield | BUFHX | Low | 5.63% | 6.26% | 12.59% | 6.91% | 7.75% |
| 15 | American Century High-Yield Inv | ABHIX | Below Average | 6.16% | 7.03% | 13.66% | 6.83% | 7.55% |
| 16 | Artio Global High Income | BJBHX | Average | 5.59% | 1.46% | 12.61% | 6.64% | - |
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