Get a 2.3% Yield and Sleep Easy

摘要

This short-term bond fund boosts returns by investing in safe mortgage securities. IN THE STAID WORLD OF BONDS, IT doesn't get much more boring than short-term U.S. government debt. But in today's low-interest-rate environment, SIT U.S. GOVERNMENT SECURITIES fund, with a yield of 2.3%, is sitting pretty. The typical short-term government bond fund pays a measly 0.7%. Managers Mark Book, Mike Brilley and Bryce Doty invest mostly in pools of government-backed fixed-rate mortgages. Like most bonds, these high-quality securities are sensitive to interest-rate moves (though not as much as Treasury bonds of similar maturities). Mortgage securities are also subject to the risk that homeowners will refinance their loans.