Best Treasury ETFs for 2026
Treasury ETFs invest exclusively in US government bonds, providing the safest fixed income exposure available since Treasuries are backed by the full faith and credit of the United States government. These funds span the entire yield curve, from short-term T-bills yielding current money market rates to long-term 20+ year bonds that offer the highest yields but greatest interest rate sensitivity. Treasury ETFs serve as portfolio stabilizers, income generators, and powerful hedges during equity market selloffs.
TLT from iShares is the most popular long-term Treasury ETF, holding 20+ year US government bonds with high duration that makes it extremely sensitive to interest rate changes. IEF, also from iShares, focuses on intermediate-term 7-10 year Treasuries, offering a balance between yield and interest rate risk. SHY from iShares holds short-term 1-3 year Treasuries, providing the most stability and lowest interest rate risk while still earning meaningful income above money market rates.
Treasury ETFs have become essential portfolio tools in the current interest rate environment. With yields at levels not seen in over a decade, Treasuries offer attractive income for the first time in years. Meanwhile, if the Federal Reserve begins cutting rates, longer-duration Treasury ETFs stand to benefit from price appreciation as bond prices rise when yields fall. The key decision for investors is selecting the right maturity — and therefore duration — based on their interest rate outlook, income needs, and risk tolerance.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | SGOV | iShares 0-3 Month Treasury Bond ETF | $78.18B |
| 2 | VTIP | Vanguard Short-Term Inflation-Protected Securities ETF | $64.60B |
| 3 | IEF | iShares 7-10 Year Treasury Bond ETF | $48.22B |
| 4 | VGIT | Vanguard Intermediate-Term Treasury ETF | $47.30B |
| 5 | TLT | iShares 20+ Year Treasury Bond ETF | $44.77B |
| 6 | BIL | State Street SPDR Bloomberg 1-3 Month T-Bill ETF | $44.53B |
| 7 | GOVT | iShares U.S. Treasury Bond ETF | $35.63B |
| 8 | VGSH | Vanguard Short-Term Treasury ETF | $31.70B |
| 9 | SHY | iShares 1-3 Year Treasury Bond ETF | $24.64B |
| 10 | SHV | iShares 0–1 Year Treasury Bond ETF | $20.27B |
| 11 | IEI | iShares 3-7 Year Treasury Bond ETF | $18.41B |
| 12 | USFR | WisdomTree Floating Rate Treasury Fund | $16.23B |
| 13 | SCHP | Schwab U.S. TIPS ETF | $15.67B |
| 14 | VGLT | Vanguard Long-Term Treasury ETF | $14.40B |
| 15 | STIP | iShares 0-5 Year TIPS Bond ETF | $14.29B |
| 16 | TIP | iShares TIPS Bond ETF | $14.29B |
| 17 | SCHR | Schwab Intermediate-Term U.S. Treasury ETF | $12.72B |
| 18 | TLH | iShares 10-20 Year Treasury Bond ETF | $12.45B |
| 19 | SCHO | Schwab Short-Term U.S. Treasury ETF | $11.80B |
| 20 | SPTL | State Street SPDR Portfolio Long Term Treasury ETF | $10.68B |
| 21 | SPTI | State Street SPDR Portfolio Intermediate Term Treasury ETF | $9.51B |
| 22 | SPAB | State Street SPDR Portfolio Aggregate Bond ETF | $9.21B |
| 23 | GBIL | Goldman Sachs Access Treasury 0-1 Year ETF | $7.21B |
| 24 | TFLO | iShares Treasury Floating Rate Bond ETF | $6.45B |
| 25 | VWOB | Vanguard Emerging Markets Government Bond ETF | $6.40B |
What to Look For
Duration is the most important metric for Treasury ETFs, as it determines how much the fund's price will change when interest rates move. Short-term funds like SHY have durations around 2 years, while long-term funds like TLT have durations of 15+ years. Every 1% change in rates moves TLT roughly 15% in price, compared to just 2% for SHY.
Compare the SEC yield for current income levels and the expense ratio, which is very low across Treasury ETFs at 0.03% to 0.15%. Consider whether you want pure Treasury exposure or if you might benefit from a blend that includes TIPS for inflation protection. Also evaluate the fund's role in your portfolio — is it for income, capital preservation, or as an equity hedge?
Which Treasury ETFs Is Best for You?
TLT is the go-to long-duration Treasury ETF with massive liquidity and the deepest options market among bond funds. Its 20+ year Treasury exposure makes it the most powerful interest rate bet and the strongest hedge against equity market crashes. When stocks plunge, investors typically rush to the safety of long-term Treasuries, driving TLT sharply higher. However, TLT is also the most volatile Treasury ETF and lost significant value during the 2022 rate hiking cycle.
IEF occupies the sweet spot of the Treasury curve with 7-10 year bonds that offer a balance between meaningful yield and moderate interest rate sensitivity. Its duration of around 7 years means it moves with rates but not as dramatically as TLT. IEF is the best choice for investors who want Treasury income and some rate sensitivity without the extreme volatility of the long end.
SHY is the conservative Treasury choice, holding 1-3 year bonds with minimal interest rate risk. Its low duration means prices barely move when rates change, making it nearly as stable as a money market fund but with slightly higher yields on the curve. SHY is ideal for parking cash with government safety, short-term reserves, or as a conservative fixed income allocation within a diversified portfolio.