Treasury exchange-traded funds (ETFs) are a popular way for investors to access the safety and stability of U.S. government debt without the hassle of buying individual bonds. These ETFs hold baskets of U.S. Treasury securities, which are backed by the full faith and credit of the U.S. government. That makes them one of the lowest credit-risk investments available.
In times of market volatility or economic uncertainty, investors often move into Treasuries as a flight to safety. These funds also tend to perform well when interest rates are falling, like during recessions, since central banks may cut rates or even restart bond-buying programs, such as quantitative easing.
While you can buy Treasuries directly through TreasuryDirect, many investors prefer Treasury bond ETFs because they're easier to buy and sell, available on any brokerage platform, and typically pay interest monthly instead of semiannually.
Treasury ETFs have become a go-to option for adding income, diversification, and downside protection to a portfolio. Here's what you need to know before adding them to yours.
The best Treasury bond ETFs for 2026
Treasury bond ETFs may seem complex if you're used to investing in stocks, but they're actually pretty simple once you understand how they work. In this list, we'll go over some of the biggest, cheapest, and most diversified Treasury bond ETFs available today and help you figure out which one might be right for your portfolio.
1. iShares U.S. Treasury Bond ETF
NYSEMKT: GOVT
Key Data Points
The iShares U.S. Treasury Bond ETF (GOVT +0.15%) is the "buy the entire Treasury market" option, excluding inflation-protected and stripped bonds (where interest payments and principal are separated and can be traded individually). It tracks the ICE U.S. Treasury Core Bond index, which holds 220 U.S. Treasury securities with maturities ranging from one to 30 years.
The result is a broad, diversified portfolio with intermediate interest rate sensitivity, reflected in an average duration of about 5.71 years. As of December 2025, investors could expect a 3.88% 30-day Securities and Exchange Commission (SEC) yield, and the fund remains cost-effective with a 0.05% expense ratio, or just $5 per $10,000 investment.
2. SPDR Portfolio Treasury ETF
NASDAQ: VGIT
Key Data Points
While ETFs like the last three mentioned hold Treasury bonds across the maturity spectrum, they all average out to an intermediate duration by design. That's intentional. This "Goldilocks" segment of the yield curve offers a balance of income and rate sensitivity, making it ideal for broad exposure.
But investors can also target this part of the Treasury curve more directly with the Vanguard Intermediate-Term Treasury ETF (VGIT +0.13%), which tracks the Bloomberg U.S. Treasury 3-10 Year Bond index.
Roughly half the fund is in bonds maturing in three to five years, and the other half is in bonds maturing in five to 10 years. The result is a slightly shorter 4.9-year duration, which lowers rate sensitivity a bit. Right now, the 30-day SEC yield is 3.76%. Like most Vanguard ETFs, it has a rock-bottom expense ratio of just 0.03%.
5. Schwab Intermediate-Term U.S. Treasury ETF
NYSEMKT: SCHR
Key Data Points
Benefits and risks of investing in Treasury bond ETFs
Key benefits:
- They provide steady monthly distributions, making them useful for income-focused investors.
- Interest is exempt from U.S. state and local taxes, boosting after-tax returns.
- They are backed by the full faith and credit of the U.S. government, making them among the safest credit-quality investments available.
Key risks:
- They can be sensitive to interest rate movements; rising rates reduce bond prices, with longer-maturity Treasury ETFs hit hardest.
- Unlike individual Treasury bonds, most Treasury ETFs can't be held to maturity to guarantee principal repayment.
- The low correlation with stocks doesn't always hold true. In 2022, for example, both Treasuries and equities fell together as inflation and rates spiked.
