High-yield bonds are similar to stocks and benefit from economic growth. Despite credit risk, they have less interest rate risk, offering unique returns. Demand for high yield has rebounded post-pandemic due to economic recovery, making them a promising investment.

Top-ranked high-yield bond mutual funds like NFIAX, BUFHX, and SFRAX are expected to outperform peers. NFIAX focuses on floating-rate securities, while BUFHX invests in higher-risk debt securities. SFRAX invests in first- and second-lien senior floating-rate loans. These funds have shown strong three-year annualized returns.

Investors can access Zacks’ full list of high-yield bond funds for more insights and rankings. Zacks’ free Fund Newsletter provides weekly updates on top-performing mutual funds and market analysis. For a limited time, investors can access all stock recommendations from Zacks’ private portfolios for just $1, with the potential for significant gains.

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Read more at Nasdaq: Grab These 3 High-Yield Bond Funds for Significant Returns