Best Long Government Bond Bond Funds
Government bond mutual funds are one of the popular taxable bond mutual funds. These fixed income funds invests in U.S. treasuries and other U.S. government bonds. There are three types of government bond mutual funds such as short government, intermediate term government, and long government.
The long term government bond funds invest in long duration government bonds with maturity of 15 to 30 years. These top bond funds are sorted based on its expense ratio, turnover rate, performance, management, etc.
The 10 best long government bond mutual funds 2012 are:
 |
| Mutual Funds |
- Wasatch-Hoisington US Treasury (WHOSX)
- American Century Zero Coupon 2025 Inv (BTTRX)
- Vanguard Long-Term Treasury Inv (VUSTX)
- American Century Zero Coupon 2020 Inv (BTTTX)
- Fidelity Spartan Long Term Treasury Bond Index Inv (FLBIX)
- PIMCO Extended Duration I (PEDIX)
- Vanguard Extended Duration Treasury Index Institutional (VEDTX)
- T. Rowe Price US Treasury Long-Term (PRULX)
- PIMCO Long-Term US Government A (PFGAX)
- Dreyfus US Treasury Long-Term (DRGBX)
1. Wasatch-Hoisington US Treasury (WHOSX)
Wasatch-Hoisington US Treasury fund utilizes its assets to purchase U.S. Treasury securities. This bond fund has been managed by Van Robert Hoisington since 1996. It has an annual expense ratio of 0.75%. Its dividend yield is 2.26%. It was offered by 96 brokerages.
Morningstar has ranked this bond fund with 4 star rating. US News has ranked it with 7.7 rating out of 10.0 rating. The average 5 year return is 14.75%. The worst 1 year total return was occurred in 2009 with -22.56%.
2. American Century Zero Coupon 2025 Inv (BTTRX)
American Century Zero Coupon 2025 fund invests majority of its assets in U.S. Treasuries securities especially zero-coupon securities. It has a yield of 2.99%. It is paid yearly. The expense ratio is only 0.56%. The annual portfolio turnover rate is 39%.
MORE: Top Performer Long Government Bond Mutual Funds of 2012
This best long government bond mutual fund has returned 17.2% over the past 3 year and 12.24% over the past 5 year. It has a 3 year beta risk of 4.40. It has its worst 1 year total return in 2009 with -20.96%. It is ranked with 3 stars rating.
3. Vanguard Long-Term Treasury Inv (Ticker: VUSTX)
This Vanguard Long-Term Treasury fund has a low expense ratio of 0.20%. It invests in U.S. Treasury securities, which include bills, bonds, and notes. The fund manager is David R. Glocke. The average credit quality is AAA (investment grade).
As of June 2012, it has average effective duration of 14.74 years and average effective maturity of 21.40 years. The year to date return of this silver rated fund is 7.75%.
4. American Century Zero Coupon 2020 Inv (BTTTX)
American Century Zero Coupon 2020 fund is ranked with 4 stars by Morningstar. Its expense ratio is 0.56%. There is no sales load. The current dividend yield is 2.73%. It opens to new investors. You can buy this mutual fund by investing $2,500 initial funding.
5. Fidelity Spartan Long Term Treasury Bond Index Inv (FLBIX)
Fidelity Spartan Long Term Treasury Bond Index fund is seeking to track the Barclays Capital U.S. Long Treasury Bond Index. It also has a low expense ratio of 0.20%. This no load bond fund has a yield of 2.83%.
MORE: Best Government Bond Mutual Funds
The 5-year average return is 12.12%. It has YTD return of 7.71%. The top bond sector is U.S. Treasury (99.75%).
6. PIMCO Extended Duration I (PEDIX)
The PIMCO Extended Duration fund invests mostly in high quality, long dated maturity fixed income instruments. Managed by Stephen Rodosky, it has expense ratio of 0.50%. It also has $382 million of total net assets. The minimum initial investment is $1 million.
7. Vanguard Extended Duration Treasury Index Institutional (VEDTX)
Vanguard Extended Duration Treasury Index fund is managed by Gregory Davis. It also has a high initial investment requirement of $5 million. The total assets are $227 million. It also has 2.67% yield. The expense ratio is only 0.11%.
8. T. Rowe Price US Treasury Long-Term (PRULX)
Ranked with 3 stars, T. Rowe Price US Treasury Long-Term fund utilizes its assets to purchase a portfolio of U.S. Treasury securities and other U.S. government bonds. This government bond fund is managed by Brian J. Brennan since 2003. The average effective duration is 15.35 years.
This top long term government bond mutual fund has a 3 year average return of 14.53%. The top 3 holdings are US Treasury Bond 4.375%, US Treasury Bond 3.5%, and US Treasury Bond 4.625%.
9. PIMCO Long-Term US Government A (PFGAX)
PIMCO Long-Term US Government fund is a 3 star mutual fund with 3.75% sales load. The total assets are $1.7 billion. Its expense ratio is 0.82%. This best bond mutual fund has a high portfolio turnover rate of 426%.
10. Dreyfus US Treasury Long-Term (DRGBX)
Dreyfus US Treasury Long-Term fund is a no load government bond mutual fund. It has 0.65% expense ratio. You can invest with $2,500 initial investment. The best 1 year total return was achieved in 2011 with 28.36%.
Disclosure: No Position
Fund Performance
| No | Fund Description | Ticker | Expenses | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|---|---|---|---|
| 1 | Wasatch-Hoisington US Treasury | WHOSX | Average | 8.86 | 43.92 | 18.44 | 14.75 | 10.58 |
| 2 | American Century Zero Coupon 2025 Inv | BTTRX | Above Average | 8.06 | 28.79 | 17.2 | 12.24 | 10.76 |
| 3 | Vanguard Long-Term Treasury Inv | VUSTX | Average | 7.75 | 30.94 | 14.81 | 12.12 | 8.86 |
| 4 | American Century Zero Coupon 2020 Inv | BTTTX | Below Average | 5.55 | 16.95 | 13.35 | 10.84 | 9.56 |
| 5 | Fidelity Spartan L/T Tr Bd Idx Inv | FLBIX | Average | 7.71 | 30.89 | 15.05 | 12.12 | -- |
| 6 | PIMCO Extended Duration I | PEDIX | High | 12.29 | 62.84 | 24.65 | 19.39 | -- |
| 7 | Vanguard Extended Dur Treas Idx Instl | VEDTX | Above Average | 11.81 | 63.31 | 22.46 | -- | -- |
| 8 | T. Rowe Price US Treasury Long-Term | PRULX | Below Average | 7.6 | 30.03 | 14.53 | 12.43 | 8.58 |
| 9 | PIMCO Long-Term US Government A | PFGAX | Below Average | 8.75 | 29.62 | 16.47 | 13.28 | 9.01 |
| 10 | Dreyfus US Treasury Long-Term | DRGBX | Below Average | 7.14 | 30.34 | 14.7 | 11.66 | 8.02 |
| 11 | American Century Zero Coupon 2015 Inv | BTFTX | Low | 1.34 | 3.72 | 6.72 | 7.48 | 7.14 |
| 12 | Rydex Govt Long Bond 1.2x Strategy Inv | RYGBX | Above Average | 11.41 | 48.47 | 19.73 | 15.15 | 9.93 |
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