US Treasury bond ETFs
ETFs that hold US government bonds, from 1-month bills to bonds of 20 years and more, and inflation-linked Treasuries (TIPS). The longer the bonds, the more the price moves when interest rates change. 14 funds compared on returns, risk and cost.
US Treasury bond ETFs compared
Ordered by fund size. Click a column heading to sort.
| ETF | Domicile | Returns (3Y and 5Y annualised) | Risk | Cost and size | ||||
|---|---|---|---|---|---|---|---|---|
| US | +3.6% | +4.5% | +3.8% | 0.2% | -0.0% | 0.09% | 113 bn | |
| US | +3.6% | +4.4% | +3.7% | 0.2% | -0.1% | 0.14% | 50 bn | |
| US | -2.1% | +3.7% | -0.4% | 4.4% | -13.7% | 0.03% | 48 bn | |
| US | -9.5% | +1.1% | -8.2% | 13.3% | -43.7% | 0.15% | 47 bn | |
| US | -4.0% | +3.4% | -1.9% | 6.3% | -20.4% | 0.15% | 41 bn | |
| US | -2.1% | +3.5% | -1.0% | 5.2% | -16.2% | 0.05% | 41 bn | |
| US | +1.3% | +3.9% | +1.7% | 1.6% | -5.5% | 0.15% | 27 bn | |
| US | +3.5% | +4.4% | +3.6% | 0.2% | -0.4% | 0.15% | 24 bn | |
| US | +4.0% | +4.6% | +3.9% | 0.3% | -0.2% | 0.15% | 20 bn | |
| US | -1.7% | +3.7% | -0.1% | 3.9% | -12.6% | 0.15% | 17 bn | |
| US | +1.1% | +4.7% | +2.5% | 1.9% | -6.5% | 0.03% | 16 bn | |
| US | -2.3% | +4.2% | -0.1% | 4.5% | -14.3% | 0.03% | 16 bn | |
| US | -7.9% | +2.2% | -7.0% | 12.1% | -41.0% | 0.03% | 15 bn | |
| Ireland | -9.5% | +0.9% | -8.1% | 13.0% | -42.8% | 0.07% | 3.0 bn | |
Total returns with dividends reinvested, in each listing's currency; returns over 3 years and longer are compounded annual returns. Volatility is the annualised standard deviation of returns over 3 years. Worst fall is the largest drop from a peak in the last 5 years. Fund size is in the listing's currency. Past performance does not indicate future returns.
What differs for an investor living in the UAE
- US estate tax. Shares of a US bond ETF count as US assets, even though the fund holds bonds; a Treasury bond held directly generally would not. For a person who is not a US citizen or resident, US estate tax can apply above US$60,000 of US assets, at rates that rise to 40%. Ireland-domiciled UCITS bond ETFs are generally not treated as US assets.
- Tax on the income. Income a US bond fund reports as interest-related dividends is exempt from the 30% US withholding for an investor outside the US with a W-8BEN form on file (iShares reports TLT's 2026 payouts as 100% qualifying, AGG's about 93%). Whether the exemption is applied depends on the fund's reporting and on your broker, so ask before you buy.
The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS, nonresidents with US assets; IRS, income tax treaties; 26 USC 871(k); iShares 2026 interest income memo, checked October 2026. Irish UCITS ETFs for UAE residents.
Compared side by side for UAE residents
Questions
How are these us treasury bond etfs ordered?
By fund size, largest first. Click any column heading to sort by returns, volatility, worst fall or cost. We do not label any fund as the best.
Which costs the least each year?
Of the funds listed, VGIT has the lowest expense ratio, 0.03% a year. Cost is the most certain difference between funds that hold similar things.
Should someone in the UAE use a US-listed or an Irish UCITS version?
It depends on your nationality, residence and plans. A US-domiciled ETF counts as a US asset for US estate tax, which can apply above US$60,000 for a person who is not a US citizen or resident; Irish UCITS ETFs generally do not. Confirm your position with a tax adviser.