What are Treasury bond ETFs?
Treasury bond ETFs own debt issued by the US government. That includes Treasury bills, or T-bills, which mature within a year, plus longer-dated notes and bonds. Because they all lend to a single borrower, these funds don't share well-known company names the way stock funds do. The largest holdings of SGOV, TLT and GOVT are all US Treasury securities. What differs is when each one matures and what it pays. The guide covers 83 US-listed funds, 11 of them leveraged or inverse.
The main difference is maturity, the date a bond repays its face value. SGOV and BIL hold Treasuries maturing within three months, and SHV holds Treasuries maturing within a year. SHY and VGSH hold short-term notes. IEI, IEF, VGIT and SCHR sit in the middle. TLT and VGLT hold long bonds, with more than 20 years left in TLT's case. GOVT tracks a broad Treasury index with 214 holdings. TIP and SCHP own TIPS, which are Treasuries whose principal adjusts with inflation. USFR holds just four floating-rate notes whose interest resets with short-term rates. These large funds all track indexes. Trading tools sit alongside them. TMF seeks three times the daily move of 20+ year Treasuries, while TMV and TBT bet on falling bond prices. TLTW pairs long Treasuries with sold call options for extra income.
The median expense ratio, which is the yearly fee taken from fund assets, is 0.15%. VGIT, VGSH, VGLT, SCHR and SCHP charge the group's lowest fee, 0.03%, and GOVT charges 0.05%. Many iShares funds, including TLT, IEF and SHY, charge 0.15%. The most expensive fund charges 1.07%.
Money is concentrated at the top. SGOV, VGIT, BIL, TLT and GOVT hold 45.8% of the roughly $638 billion in these funds. SGOV alone holds about $106 billion, more than twice as much as the next-largest fund.
The largest Treasury bond ETFs, side by side
Swipe the table to see all 5 funds.
| SGOV | VGIT | BIL | TLT | GOVT | |
|---|---|---|---|---|---|
| Net assets | $105.98B | $48.41B | $47.08B | $47.05B | $43.55B |
| Expense ratio | 0.09% | 0.03% | 0.14% | 0.15% | 0.05% |
| Holdings | 22 | 103 | 22 | 46 | 214 |
| In the 10 largest | 68.44% | 18.51% | 74.45% | 40.18% | 21.71% |
| Biggest holding | United States of America (10.18%) | United States Treasury Note/Bond (1.92%) | United States Treasury (12.04%) | United States of America (4.46%) | United States of America (5.28%) |
| Yield | 3.65% | 3.97% | 3.65% | 4.75% | 3.73% |
| 1-year return | +3.4% | -0.2% | +3.3% | -5.3% | -0.5% |
| 3 years, a year | +4.4% | +4.5% | +4.3% | +2.1% | +3.8% |
| 5 years, a year | +3.8% | +0.2% | +3.7% | -7.9% | -0.7% |
| Worst drop, past year | -0.3% | -4.7% | -0.3% | -12.6% | -4.4% |
| Launched | 2020 | 2009 | 2007 | 2002 | 2012 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Nov 2, 2026.
Head to head
SGOV vs VGIT
SGOV and VGIT share no holdings. SGOV owns 22 Treasuries maturing within three months, with 68% of assets in its top 10. Vanguard's VGIT spreads across 103 intermediate-term notes, none above 1.92%. VGIT charges 0.03% a year to SGOV's 0.09% and yielded 3.97% to 3.65%. As of November 2, 2026, SGOV returned 3.4% over one year, with a worst drop of 0.3%. VGIT lost 0.2% and fell as much as 4.7%. Over five years SGOV averaged 3.8% a year and VGIT 0.2%. SGOV may suit near-term cash, and VGIT may suit investors who can ride out rate-driven price swings.
SGOV vs BIL
Both hold very short-term Treasuries, yet only 24.5% of their assets overlap (9 holdings in common). Part of the reason is that BIL's index skips bills with less than a month left, while SGOV's includes them. Each has 22 holdings. The top 10 make up 68% of SGOV and 74% of BIL. SGOV, from iShares, charges 0.09%, and BIL, from SPDR (State Street), charges about 0.14%. As of November 2, 2026, both yielded 3.65% and fell no more than 0.3% over the year. SGOV returned 3.4% and BIL 3.3%. BIL's record goes back to 2007. Both may suit money set aside for near-term needs.
VGIT vs GOVT
VGIT and GOVT overlap more than any other pair among the five largest funds, with 38.9% of assets and 82 holdings in common. iShares' GOVT tracks a broad Treasury index with 214 holdings, and it also shares 38 with TLT. Its largest holding is 5.28%. Vanguard's VGIT sticks to intermediate maturities, with 103 holdings, none above 1.92%. VGIT costs 0.03% to GOVT's 0.05%. As of November 2, 2026, VGIT lost 0.2% over one year and GOVT 0.5%, with worst drops of 4.7% and 4.4%. In the 2022 bear market they lost 11.2% and 12.6%. Both may suit investors who want a core Treasury holding.
How much do the largest Treasury bond ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VGIT and GOVT | 38.9% | 82 | |
| SGOV and BIL | 24.5% | 9 | |
| TLT and GOVT | 10.5% | 38 | |
| SGOV and VGIT | 0% | 0 | |
| SGOV and TLT | 0% | 0 | |
| SGOV and GOVT | 0% | 0 | |
| VGIT and BIL | 0% | 0 | |
| VGIT and TLT | 0% | 0 | |
| BIL and TLT | 0% | 0 | |
| BIL and GOVT | 0% | 0 |
From each fund’s full holdings in its latest N-PORT report.
How have Treasury bond ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing Treasury bond ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | CSHI NEOS Enhanced Income 1-3 Month T-Bill ETF | $1.40B | 0.38% | +0.4% | +4.0% | +4.9% | +5.3% |
| 2 | USFR WisdomTree Floating Rate Treasury Fund | $18.76B | 0.15% | +0.4% | +3.3% | +4.1% | +4.6% |
| 3 | TFLO iShares Treasury Floating Rate Bond ETF | $6.70B | 0.15% | +0.4% | +3.2% | +4.0% | +4.5% |
| 4 | TBIL US Treasury 3 Month Bill ETF | $7.19B | 0.15% | +0.3% | +3.0% | +3.7% | +4.5% |
| 5 | TRSY Xtrackers US 0-1 Year Treasury ETF | $94.9M | 0.06% | +0.4% | +2.9% | +3.7% | — |
| 6 | BILS SPDR Bloomberg 3-12 Month T-Bill ETF | $3.87B | 0.14% | +0.4% | +2.8% | +3.6% | +4.4% |
| 7 | GBIL ACCESS TREASURY 0-1 YEAR ETF | $7.64B | 0.12% | +0.4% | +2.8% | +3.6% | +4.4% |
| 8 | IBTG iShares iBonds Dec 2026 Term Treasury ETF | $2.22B | 0.07% | +0.3% | +2.9% | +3.6% | +4.7% |
| 9 | TBLL Invesco Short Term Treasury ETF | $2.58B | 0.08% | +0.4% | +2.9% | +3.6% | +4.4% |
| 10 | XHLF BondBloxx Bloomberg Six Month Target Duration US … | $1.95B | 0.03% | +0.4% | +2.8% | +3.5% | +4.4% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How Treasury bond ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| SGOV | not yet launched | not yet launched | +0.8% |
| VGIT | not yet launched | +5.0% | -11.2% |
| BIL | +2.8% | +0.3% | +0.6% |
| TLT | +25.1% | +14.2% | -29.3% |
| GOVT | not yet launched | +5.7% | -12.6% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives Treasury bond ETFs?
These funds own government debt, not companies, so profits play no part. Prices move mainly with interest rates. When rates rise, older bonds that pay less lose value. When rates fall, they gain. The longer a bond has until it matures, the bigger the swing, which is why TLT moves far more than SGOV. Rates themselves respond to inflation, Federal Reserve policy and how much the government borrows. T-bill funds such as SGOV and BIL barely move in price, but their income follows short-term rates closely. TIPS funds such as TIP and SCHP also respond directly to inflation.
Past downturns show both sides. In the 2008 financial crisis, the S&P 500 fell 55.2% while TLT gained 25.1% and BIL 2.8%. In the 2020 COVID crash, the S&P 500 fell 33.7%, and TLT rose 14.2%, GOVT 5.7% and VGIT 5%. The 2022 bear market was different. The S&P 500 fell 24.5%, but TLT lost 29.3%, GOVT 12.6% and VGIT 11.2%. That was a reminder that bonds and stocks can fall together when interest rates climb. Of these funds, only the shortest held steady, with SGOV up 0.8% and BIL up 0.6%.
Treasury bond ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | VGIT Vanguard Intermediate-Term Treasury ETF | 0.03% | $3 a year | $48.41B |
| 2 | VGSH Vanguard Short-Term Treasury ETF | 0.03% | $3 a year | $39.20B |
| 3 | SCHP Schwab U.S. TIPS ETF | 0.03% | $3 a year | $16.52B |
| 4 | VGLT Vanguard Long-Term Treasury ETF | 0.03% | $3 a year | $15.13B |
| 5 | SCHR Schwab Intermediate-Term U.S. Treasury ETF | 0.03% | $3 a year | $13.38B |
Ordinary funds with at least $10 million in net assets. The median ordinary Treasury bond ETF charges 0.1% a year; leveraged and inverse funds usually charge more.
Do Treasury bond ETFs pay dividends?
70 of the 72 ordinary Treasury bond ETFs with a page here paid distributions over the last 12 months, with a median yield of 4.02%.
| Highest yields | Yield | Net assets |
|---|---|---|
| TLTW iShares 20+ Year Treasury Bond BuyWrite Strat… | 11.31% | $1.84B |
| LTPZ PIMCO 15+ Year US TIPS Index Exchange-Traded … | 6.23% | $707.9M |
| TIPZ PIMCO Broad U.S. TIPS Index ETF | 5.58% | $85.3M |
| GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.53% | $326.9M |
| EDV Vanguard Extended Duration Treasury ETF | 5.37% | $4.13B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets. Some of these yields come from selling options, which gives up some of the gains.
How to choose a Treasury bond ETF
- Maturity: months, years or decades. Maturity drives price risk. Over the year to November 2, 2026, SGOV and BIL (three months or less) fell no more than 0.3%. IEF (7-10 years) fell up to 6.9%, and TLT (20+ years) up to 12.6%.
- Yearly cost. Five funds charge 0.03% a year: VGIT, VGSH, VGLT, SCHR and SCHP. Funds with similar aims can differ. SHY and VGSH both hold short-term Treasuries, at 0.15% and 0.03%. Fees come straight out of the yield.
- One slice of maturities or the whole market. GOVT spreads 214 holdings across a Treasury index and shares bonds with VGIT and TLT. Narrower funds pick one band: SHY one to three years, IEI three to seven, IEF seven to ten. Slices allow more control, while GOVT needs fewer decisions.
- Inflation-protected and floating-rate Treasuries. TIP (0.18%) and SCHP (0.03%) hold TIPS, Treasuries whose principal adjusts with inflation. USFR holds floating-rate Treasury notes whose interest resets with short-term rates. It had no measurable drop over the year to November 2, 2026.
- Size and track record. SGOV is the largest fund, with about $106 billion, but it launched only in 2020. BIL dates from 2007, and TLT, IEF and SHY from 2002, so their records include the 2008 financial crisis.
- Leveraged, inverse and option-income versions. TMF seeks three times the daily move of 20+ year Treasuries, and TMV seeks minus three times. TLTW sells call options against long Treasuries for income. All three behave very differently from TLT over months and years.
What are the risks of Treasury bond ETFs?
- Long bonds can swing like stocks. One-year volatility, a measure of price swings, was 9.7% for TLT against 0.4% for SGOV as of November 2, 2026. TLT's worst drop over that year was 12.6%, and it lost 7.9% a year over five years.
- Treasuries don't always cushion stock crashes. In the 2022 bear market TLT lost 29.3%, more than the S&P 500's 24.5% fall, and GOVT lost 12.6%. TLT rose in the 2008 and 2020 crashes, but that pattern is not guaranteed.
- T-bill fund income falls with rates. SGOV and BIL hold Treasuries maturing within three months, so their 3.65% yields (as of November 2, 2026) reset quickly. If short-term rates fall, payouts fall too. Longer bonds keep their fixed rates for years.
- Daily resets distort leveraged and inverse returns. TMF seeks 3x the daily move of 20+ year Treasuries. Yet in the year to November 2, 2026, it lost 29.1% while TLT lost 5.3%, far more than triple. Daily resets make longer-term results drift from the target multiple.
- Option income caps the upside. TLTW pairs long Treasuries with sold call options. Its yield was 11.31% as of November 2, 2026, the group's highest. In exchange, it gives up much of any rally but still bears most of the losses.
Leveraged and inverse Treasury bond ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
| Fund | Daily aim | Net assets | 1-year return |
|---|---|---|---|
| TMF Direxion Daily 20+ Year Treasury Bull 3X Shares | 3× | $2.20B | -29.1% |
| TBT ProShares UltraShort 20+ Year Treasury | −2× | $297.1M | +23.6% |
| TMV Direxion Daily 20+ Year Treasury Bear 3x Shares | −3× | $193.1M | +36.5% |
| TBF ProShares Short 20+ Year Treasury | −1× | $116.0M | +12.8% |
| UBT ProShares Ultra 20+ Year Treasury | 2× | $63.9M | -17.7% |
| TYD Direxion Daily 7-10 Year Treasury Bull 3x Shares | 3× | $31.6M | -17.6% |
| TBX ProShares Short 7-10 Year Treasury | −1× | $21.0M | +8.7% |
| TTT ProShares UltraPro Short 20+ Year Treasury | −3× | $16.8M | +32.6% |
| UST ProShares Ultra 7-10 Year Treasury | 2× | $14.5M | -9.4% |
| TYO Direxion Daily 7-10 Year Treasury Bear 3x Shares | −3× | $12.5M | +25.0% |
| PST ProShares UltraShort 7-10 Year Treasury | −2× | $10.7M | +15.1% |
List of all Treasury bond ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | SGOV iShares 0-3 Month Treasury Bond ETF | $105.98B | 0.09% | 3.65% | +2.8% | +3.4% | +3.8% |
| 2 | VGIT Vanguard Intermediate-Term Treasury ETF | $48.41B† | 0.03% | 3.97% | -0.8% | -0.2% | +0.2% |
| 3 | BIL SPDR Bloomberg 1-3 Month T-Bill ETF | $47.08B | 0.14% | 3.65% | +2.7% | +3.3% | +3.7% |
| 4 | TLT iShares 20+ Year Treasury Bond ETF | $47.05B | 0.15% | 4.75% | -3.0% | -5.3% | -7.9% |
| 5 | GOVT iShares U.S. Treasury Bond ETF | $43.55B | 0.05% | 3.73% | -0.6% | -0.5% | -0.7% |
| 6 | IEF iShares 7-10 Year Treasury Bond ETF | $41.82B | 0.15% | 4.05% | -2.0% | -1.7% | -1.4% |
| 7 | VGSH Vanguard Short-Term Treasury ETF | $39.20B† | 0.03% | 3.78% | +1.4% | +2.2% | +2.1% |
| 8 | SHY iShares 1-3 Year Treasury Bond ETF | $25.91B | 0.15% | 3.6% | +1.0% | +1.7% | +1.9% |
| 9 | SHV iShares Short Treasury Bond ETF | $20.97B | 0.15% | 3.64% | +2.6% | +3.3% | +3.6% |
| 10 | USFR WisdomTree Floating Rate Treasury Fund | $18.76B | 0.15% | 3.71% | +3.3% | +4.1% | +4.1% |
Questions investors ask about Treasury bond ETFs
What is the largest Treasury bond ETF?
SGOV, the iShares 0-3 Month Treasury Bond ETF, is the largest, with about $106 billion in net assets. Next come Vanguard's VGIT, SPDR's BIL, and iShares' TLT and GOVT. Together these five hold 45.8% of the roughly $638 billion in Treasury bond ETFs. Two of them, SGOV and BIL, hold only Treasuries that mature within three months. That shows how much of the money sits in cash-like funds.
What is the cheapest Treasury bond ETF?
Five funds share the lowest expense ratio, 0.03% a year: Vanguard's VGIT, VGSH and VGLT, and Schwab's SCHR and SCHP. Between them they cover short, intermediate and long maturities, and SCHP holds inflation-protected TIPS. The median across Treasury bond ETFs is 0.15%. Among other large funds, GOVT charges 0.05%, SGOV 0.09% and BIL about 0.14%, while TLT, IEF and SHY charge 0.15%.
SGOV vs VGIT: what is the difference?
SGOV holds Treasuries maturing within three months, so its price barely moves. VGIT holds intermediate-term notes whose prices move when interest rates change. They share no holdings. As of November 2, 2026, SGOV returned 3.4% over one year with a worst drop of 0.3%, while VGIT lost 0.2% and fell as much as 4.7%. VGIT costs less (0.03% vs 0.09%) and yielded more (3.97% vs 3.65%). SGOV may suit near-term cash needs, and VGIT may suit longer holding periods.
Do Treasury bond ETFs pay dividends?
Yes. Of 72 funds with a payout history, 70 paid distributions, which come from the interest on their bonds. The median yield was 4.02% as of November 2, 2026. Among the largest funds, TLT yielded 4.75%, VGIT 3.97%, GOVT 3.73%, and SGOV and BIL 3.65% each. Payouts from T-bill funds such as SGOV and BIL change quickly when short-term rates move. Payouts from long-bond funds adjust more slowly.
Which Treasury bond ETF has the highest yield?
TLTW, the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF, had the highest yield, 11.31% as of November 2, 2026. Much of that comes from selling call options, which gives up gains when bonds rally. Among funds that simply hold bonds, PIMCO's LTPZ (long TIPS) yielded 6.23% and TIPZ 5.58%. iShares' GOVZ, which holds 25+ year STRIPS (zero-coupon Treasuries), yielded 5.53%, and Vanguard's EDV 5.37%. Very long bonds like these also tend to swing the most when rates change.
Is there a 10-year Treasury bond ETF?
The closest match is the iShares 7-10 Year Treasury Bond ETF (IEF), which tracks Treasuries maturing in seven to ten years. It holds just 15 bonds, with 84% of assets in its top 10, and it charges 0.15%. As of November 2, 2026, IEF lost 1.7% over one year, with a worst drop of 6.9%. VGIT and SCHR hold a broader intermediate mix for 0.03%, and IEI covers three to seven years.
How many Treasury bond ETFs are there?
There are 83 US-listed Treasury bond ETFs, holding roughly $638 billion. Eleven are leveraged or inverse trading funds, such as TMF and TBT. The rest range from T-bill funds like SGOV and BIL to long-bond funds like TLT and VGLT. Inflation-protected funds (TIP, SCHP) and a floating-rate fund (USFR) are also among the largest. The five largest funds hold 45.8% of all the money.
What are leveraged and inverse Treasury ETFs like TMF and TBT?
They are trading tools that aim to multiply or reverse the daily move of a Treasury index. TMF seeks three times the daily return of 20+ year Treasuries, TMV minus three times and TBT minus two times. Because they reset daily, results over longer periods drift from those targets. In the year to November 2, 2026, TMF lost 29.1% while TLT lost 5.3%, and TMV gained 36.5%. They are designed for short holding periods.
Is there a Vanguard, Fidelity or Schwab Treasury bond ETF?
Yes. Vanguard offers 4: VGIT (Vanguard Intermediate-Term Treasury ETF), VGSH (Vanguard Short-Term Treasury ETF), VGLT (Vanguard Long-Term Treasury ETF) and 1 more. Schwab offers 4: SCHP (Schwab U.S. TIPS ETF), SCHR (Schwab Intermediate-Term U.S. Treasury ETF), SCHO (Schwab Short-Term U.S. Treasury ETF) and 1 more. Fidelity doesn’t have a Treasury bond ETF.
