Best High Yield Corporate Bond Funds

High Yield Corporate Bond Funds

What are the best high yield corporate bond funds? There are many of these funds to choose from, and each will have specific risks along with the higher yields. One of the top choices for many investors in this sector is the Vanguard High Yield Corporate Fund, symbol VWEHX, and this fund is under the management of Michael Hong. This fund has been called one of the best funds for high yield corporate bonds, and the 5 year performance review shows an annualized return that is high at 6.5%. The bonds chosen by the fund are investment grade securities with the lowest rating for this category to increase the yield. Rydex High-Yield Strategy A, ticker RYHDX, is another fund that is viewed as one of the best for this type of investment. Mike Byrum is the fund manager and this fund chooses high yield bonds that follow the market in the USA and Canada. The return for this fund is around 11.4% when the three year performance is annualized.

One of the best high yield corporate bond funds for most investors is the T. Rowe Price High-Yield Fund, symbol PRHYX. Mark Vaselkiv has been the manager of the fund for more than a decade, and the annualized return over the last 10 years is slightly more than 8%. The fund chooses a variety of the best corporate bonds that offer higher than average yields, and also invests in convertible securities and preferred stocks as well.

JHancock High-Yield I, symbol JYHIX, is another of the best high yield corporate bond funds. This fund is for investors only and does require a large amount of capital to invest, but a yield of 6.3% and a YTD return of over 10% makes it a top contender for investors who can afford it. Morningstar rates this fund at 5 stars, and the expense ratio of 0.64% is reasonable and less than the expenses charged by many bond index funds. Value Line Aggressive Income Fund, ticker VAGIX, is a fund that seeks out maximum current income and is viewed as one of the best funds in this sector. Junk bonds are mainly chosen by the fund to provide the higher yield, and a year to date return of more than 4.35% shows that manager Jeffrey Geffen gets good results.

One of the best high yield corporate bond funds for a number of investors is the BlackRock High Yield Bond Fund, symbol BRHYX. The current yield for this fund is 6.27%, and the expense ratio for the fund is low at 0.58%. The fund has more than 7 billion in assets and is managed by Charlie McCarthy. Federated High-Income Bond A Fund, ticker FHIIX, is another popular choice for investors looking for high yields. If the investment goal is higher than average corporate bond yields then any of the funds listed can help you achieve this goal. Remember that each investor is different, with different strategies and acceptable risk levels, and fund research and comparisons will help you choose the best fund for your specific investment purposes.