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I've got bad news for yield junkies: In a premium-priced fund, yield is poison.
All yield more than double the average money market fund yield.
Fund Yield Total return latest 12 months Fund 10-year annualized total return Expenses per $100.
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As of Sept. 30, the fund yielded 2.44percentt.
Over all, the fund yields 2.7percentt, about double the yield of the S.& P. 500.
Over all, the bond portion of the fund yields 7.25percentt, compared with 6.4percentt for the index.
These steps would lower most fund yields, but the industry is betting that lower risks will reassure most mainstream investors.
Money fund yields roughly track the Federal Reserve's federal funds rate, which is the rate banks charge each other on overnight loans.
As of the end of July, the companies in the fund yielded an average of 2.6percentt, annualized, versus 1.8percentt for the Standard & Poor's 500-stock index.
According to Morningstar, the fund yielded 1.69percentt for the 12 months through September, about six-tenths of a percentage point more than money markets.
He urged investors to remember that advertised fund yields are for past, not future, returns, and that junk bonds pose risks more like those of equities than of high-quality bonds.
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