RISK-RETURN TRADE-OFF: Mutual funds that specialize in government-backed mortgage bonds known as Ginnie Maes can generate significantly higher yields for their investors than Treasury bonds maturing over a similar number of years. Risks are only modestly higher.

WHAT THEY INVEST IN: Ginnie Maes are pools of mortgages guaranteed by the Government National Mortgage Association.

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KEY CONSIDERATIONS: These specialized funds can invest as much as 20 percent of their portfolios in bonds that aren’t Ginnie Maes. If mortgage refinancing activity increases, investment returns of Ginnie Mae funds are likely to shrink. Rising interest rates also pose a risk.