Buy These 3 Diversified Bond Mutual Funds to Reduce Risk
Mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Moreover, investing in diversified bond funds is preferred to individual bond investing, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
Below, we share with you three top-ranked diversified bond mutual funds, namely Nuveen Preferred Securities NPSAX, Osterweis Strategic Income OSTIX and Ave Maria Bond AVEFX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Nuveen Preferred Securities invests the majority of its net assets and in preferred securities and other income-producing securities. The advisor intends to invest at least 25% of its assets in the securities of companies principally engaged in financial services. It normally invests at least 50% of its net assets in securities rated investment grade. The fund has returned 4.2% over the past three years.
Douglas M. Baker has been one of the fund managers of NPSAX since June 2007.
Osterweis Strategic Income invests the majority of its assets in income-bearing securities. OSTIX advisors seek to control risk through rigorous credit analysis, economic analysis, interest rate forecasts and sector trend review. The fund has returned 6.1% over the past three years.
As of December 2024, OSTIX had 33.3% of its assets invested in Total Misc Bonds.
Ave Maria Bond invests in investment-grade debt securities of domestic issuers, including the U.S. government and its agencies and instrumentalities, corporations and municipalities and money market instruments. AVEFX may invest part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 4.8% over the past three years.
AVEFX has an expense ratio of 0.41%.
To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
View All Zacks #1 Ranked Mutual Funds
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (NPSAX): Fund Analysis Report
Get Your Free (AVEFX): Fund Analysis Report
Get Your Free (OSTIX): Fund Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 hours ago
- Yahoo
Disney Share Prices Jumped — Should You Invest Now?
Walt Disney Co. stock prices have continued to climb following a better-than-expected earnings report in the beginning of May 2025. Stuck at under $100 since March 2025, the stock jumped to more than $112 in early May. It's hovering near its 52-week high of more than $118, and still has room for growth. Read More: Trending Now: Zacks Investment Research gave Disney a grade of 'A' for growth and momentum scores, and 'B' for value. Perhaps it would have been smarter to buy Disney stock in late 2024 or early 2025 if you were looking for value pricing. However, there's still plenty of room for growth. For instance, Rosenblatt Securities raised its price target on Disney from $135 to $140 and rated the stock a 'buy now,' according to Marketbeat. Several other analysts, including UBS Group, Loop Capital and The Goldman Sachs Group also gave Disney buy ratings. A solid earnings statement and the announcement of a new theme park and resort in Abu Dhabi, United Arab Emirates, bolstered Disney stock prices. Revenue increased 7% in the second fiscal quarter, which ended in March 2025. Income before taxes also increased from less than $1 billion to $3.1 billion. Disney+ gained 1.4 million subscribers since the prior quarter. Explore Next: It's no surprise that, in spite of heated competition from Universal's new Epic Universe theme park minutes from Walt Disney World Resort, Disney stock is starting to rise as summer approaches. 'It's a seasonal thing; summertime is always good for Disney,' David Capablanca, Miami native, finance expert, and host of The Friendly Bear podcast said. While it could be school breaks and family vacations driving Disney, the entertainment company also has a solid history and foundation that long-term investors like. 'Disney stock is… something to hold long term,' Capablanca said. 'The entertainment they offer is timeless. They've got a whole catalog of history.' Not every expert called Disney a buy or hold, however. 'Before getting too excited about recent gains, let's remember that Disney has had a lost decade, with the stock trading around the same as it was in 2015,' Vince Stanzione, CEO and founder at First Information, said. He added that even with a strong global economy, Disney has struggled. 'If we are going into a slower economy and a possible recession as I believe we are, I really don't see Disney stock offering any value.' Will a Disney investment earn the same kind of 1350% return Stanzione said Netflix delivered in the past decade? Probably not. But many retail investors buy Disney to own a piece of the company they love. In turn, their portfolio benefits from the addition of a low-risk, slow-growth, dividend-earning stock. Whether you buy Disney or not depends on what you're looking for and how you analyze the numbers. Some experts prefer to focus on the inevitable competition and tailwinds, while others adopt a worry-free philosophy toward the company and choose to focus on the positive earnings in 2025. 'They're a timeless kind of organization [and] very low risk,' Capablanca said. 'As the overall market keeps breaking out, it's going to help Disney maintain an upward trajectory over the long term. We're heading toward all-time highs, and a rising tide lifts all boats.' More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Disney Share Prices Jumped — Should You Invest Now? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Why Astrazeneca (AZN) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. AstraZeneca plc, headquartered in London, UK, is one of the largest biopharmaceutical companies in the world. AstraZeneca was formed on Apr 6, 1999, through the merger of Sweden's Astra AB and UK's Zeneca Group plc. AstraZeneca's business can be broken down into separate lines based on therapeutic classes. These include CVRM (cardiovascular, renal and metabolism), Respiratory & Immunology (R&I), Oncology, Rare Diseases, Vaccines and Other. AZN sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 9.3% and 6.7% year-over-year, respectively. Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0 to $4.49 per share. AZN also boasts an average earnings surprise of 4.2%. On a historic basis, Astrazeneca has generated cash flow growth of 18.6%, and is expected to report cash flow expansion of 16.7% this year. Investors should take the time to consider AZN for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
Lemonade (LMND) Reports Q1 Earnings: What Key Metrics Have to Say
Lemonade (LMND) reported $151.2 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 27%. EPS of -$0.86 for the same period compares to -$0.67 a year ago. The reported revenue represents a surprise of +5.05% over the Zacks Consensus Estimate of $143.93 million. With the consensus EPS estimate being -$0.94, the EPS surprise was +8.51%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: In force premium (end of period): $1.01 billion compared to the $999.35 million average estimate based on four analysts. Premium per Customer (end of period): $396 versus $394.15 estimated by four analysts on average. Customers (end of period): 2,545,496 versus the four-analyst average estimate of 2,535,658. Net loss ratio: 82% versus the four-analyst average estimate of 89%. Gross loss ratio: 78% compared to the 80.8% average estimate based on four analysts. Net investment income: $9.50 million versus the four-analyst average estimate of $8.45 million. The reported number represents a year-over-year change of +25%. Ceding commission income: $26.90 million versus $22.06 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +28.1% change. Commission income: $10.50 million versus the four-analyst average estimate of $8.02 million. The reported number represents a year-over-year change of +72.1%. Net earned premium: $104.30 million compared to the $105.18 million average estimate based on four analysts. The reported number represents a change of +23.6% year over year. View all Key Company Metrics for Lemonade here>>>Shares of Lemonade have returned +6.7% over the past month versus the Zacks S&P 500 composite's +11.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
