Generally conservative investors who seek high current income consistent with the highest credit quality and can accept fluctuations in share price as interest rates and mortgage prepayments rise and fall. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
Click on the risk/reward spectrum below to view the funds in that category
The GNMA Fund can be an attractive option for income investors who are willing to tolerate some price volatility. Unlike corporate bond funds, the GNMA Fund has negligible credit risk since it invests only in securities guaranteed by the U.S. government. Mortgage-backed bonds offer higher income than Treasuries without any decrease in credit quality.
Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. The fund is also susceptible to prepayment risk, which occurs when homeowners pay off their loans early. Your investment in the fund is not insured or guaranteed by the U.S. government.
* Funds are placed in general risk/return categories based on their 10-year standard deviation
(as of December 2015) or, for newer funds, the standard deviation of the types of securities
in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.
The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Download a prospectus.