3 Short-Term Government Bond Mutual Funds for Low-Risk Investing

Three top-ranked short-term government bond mutual funds are SEI Short-Duration Government TCSGX, Federated Hermes Short-Term Govt IS FSGVX, and GMO US Treasury GUSTX. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers. They primarily invest in U.S. Treasury obligations, mortgage-backed securities, and repurchase agreements guaranteed by U.S. government agencies or instrumentalities. The funds have returned 4%, 3.6%, and 4.9% over the past three years, respectively. GUSTX has an expense ratio of 0.1%.