Top 10 U.S.-listed bond ETFs to watch in 2026

A bond ETF holds fixed income securities – government bonds, corporate debt, mortgage-backed securities – in a single fund that trades on an exchange. The ten funds in this list cover a broad spread of bond types, from short-dated US Treasury bills in State Street SPDR Bloomberg 1-3 Month T-Bill ETF ($BIL) and the total US investment-grade market tracked by iShares Core US Aggregate Bond ETF ($AGG), to the AAA-rated collateralised loan obligations held by Janus Henderson AAA CLO ETF ($JAAA).

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in US$. Data updated as of 3 August 2026.

1. iShares Core US Aggregate Bond ETF ($AGG)

iShares Core US Aggregate Bond ETF (AGG) share price over the last year: started at US$99.22, ended at US$97.26, a change of −2.0%. Range over the period: high US$101.40, low US$97.26. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$97.26 · Daily: -0.1% · AUM: US$136.95B · MER: 0.03%

The Bloomberg US Aggregate Bond Index covers the total US investment-grade bond market, and iShares Core US Aggregate Bond ETF ($AGG) is designed to follow it. The index includes US government bonds, corporate debt and other fixed-income securities rated investment-grade – meaning they meet a minimum credit quality threshold set by the index provider. That broad coverage means the fund holds exposure across multiple bond types rather than concentrating on a single segment.

The underlying holdings are denominated in US dollars, which introduces currency exposure for Australian-based investors. Movements between the AUD and the US dollar affect how the fund's returns translate back into Australian dollars.

2. Vanguard Total International Bond Index Fund ($BNDX)

Vanguard Total International Bond Index Fund (BNDX) share price over the last year: started at US$49.47, ended at US$47.84, a change of −3.3%. Range over the period: high US$49.91, low US$47.57. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$47.84 · Daily: 0.1% · AUM: US$82.64B · MER: 0.07%

Non-US dollar investment-grade debt is what Vanguard Total International Bond Index Fund ($BNDX) is built around. The fund aims to track the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index, which measures the investment return of that bond universe. Its indexing approach means $BNDX is designed to replicate the index's composition rather than actively select securities.

The index carries a USD-hedged structure, so the fund is designed to reduce the impact of movements between the US dollar and the various non-USD currencies its underlying bonds are denominated in. For Australian-dollar investors, AUD/USD exposure remains, since $BNDX is priced in US dollars.

3. State Street SPDR Bloomberg 1-3 Month T-Bill ETF ($BIL)

State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) share price over the last year: started at US$91.48, ended at US$91.42, a change of −0.1%. Range over the period: high US$91.77, low US$91.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$91.42 · Daily: -0.3% · AUM: US$47.29B · MER: 0.14%

The State Street SPDR Bloomberg 1-3 Month T-Bill ETF ($BIL) aims to match the price and yield performance of the Bloomberg 1-3 Month US Treasury Bill Index. That index covers US Treasury bills with maturities between one and three months – the shortest end of the US government debt market. $BIL uses a sampling strategy, so it may hold a representative subset of the index rather than every security in it. Because the underlying holdings are priced in USD, investors holding the fund from an Australian dollar base carry exposure to movements between the two currencies.

4. iShares National Muni Bond ETF ($MUB)

iShares National Muni Bond ETF (MUB) share price over the last year: started at US$104.09, ended at US$105.45, a change of +1.3%. Range over the period: high US$108.92, low US$103.91. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$105.45 · Daily: -0.2% · AUM: US$45.19B · MER: 0.05%

Municipal bonds are debt securities issued by U.S. states and local government bodies. The iShares National Muni Bond ETF ($MUB) aims to track the ICE AMT-Free US National Municipal Index, a benchmark covering investment-grade versions of these securities. The index excludes bonds subject to the alternative minimum tax (AMT), a separate layer of U.S. tax that applies to certain income types. All underlying holdings are denominated in U.S. dollars, so movements between the AUD and USD can affect what the fund is worth in Australian dollar terms.

5. Vanguard Short-Term Corporate Bond Idx Fd ($VCSH)

Vanguard Short-Term Corporate Bond Idx Fd (VCSH) share price over the last year: started at US$79.49, ended at US$78.42, a change of −1.3%. Range over the period: high US$80.20, low US$78.41. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$78.42 · Daily: -0.3% · AUM: US$45.01B · MER: 0.03%

Vanguard Short-Term Corporate Bond Idx Fd ($VCSH) aims to track the Barclays Capital U.S. 1-5 Year Corporate Bond Index, which covers U.S. dollar-denominated investment-grade corporate bonds with maturities running from one to five years. The index is market-weighted, so larger bond issuances carry proportionally more weight in the portfolio. Because the underlying bonds are priced in USD, the fund carries currency exposure between the U.S. dollar and the Australian dollar.

6. iShares 20+ Year Treasury Bond ETF ($TLT)

iShares 20+ Year Treasury Bond ETF (TLT) share price over the last year: started at US$88.06, ended at US$82.19, a change of −6.7%. Range over the period: high US$92.06, low US$82.19. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$82.19 · Daily: -0.07% · AUM: US$41.54B · MER: 0.15%

Tracking the long end of the U.S. Treasury market, iShares 20+ Year Treasury Bond ETF ($TLT) aims to match the price and yield performance of the Barclays Capital 20+ Year Treasury Index. That index covers U.S. government bonds with maturities of 20 years or more. Because those bonds are denominated in U.S. dollars, Australian investors in $TLT carry exposure to movements between USD and AUD alongside the bond price itself.

7. iShares MBS ETF ($MBB)

iShares MBS ETF (MBB) share price over the last year: started at US$93.77, ended at US$92.72, a change of −1.1%. Range over the period: high US$96.91, low US$92.72. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$92.72 · Daily: -0.2% · AUM: US$38.90B · MER: 0.04%

Agency mortgage-backed securities are bonds backed by pools of U.S. home loans, issued or guaranteed by government-sponsored entities. iShares MBS ETF ($MBB) is designed to track the investment-grade segment of that market, following the Barclays Capital U.S. MBS Fixed-Rate Index. The index covers fixed-rate mortgages with terms of 15, 20 and 30 years – plus balloon securities – all originated through Ginnie Mae, Freddie Mac or Fannie Mae. The holdings are denominated in USD, so Australian dollar investors carry exposure to movements between the AUD and the USD.

8. iShares iBoxx $ Inv Grade Corporate Bond ETF ($LQD)

iShares iBoxx $ Inv Grade Corporate Bond ETF (LQD) share price over the last year: started at US$109.82, ended at US$106.11, a change of −3.4%. Range over the period: high US$112.92, low US$106.11. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$106.11 · Daily: -0.1% · AUM: US$32.29B · MER: 0.14%

iShares iBoxx $ Inv Grade Corporate Bond ETF ($LQD) aims to track the Markit iBoxx USD Liquid Investment Grade Index, a rules-based benchmark of liquid, US dollar-denominated corporate bonds available for sale in the U.S. Investment grade means the bonds carry a minimum credit rating, placing them above the speculative – sometimes called 'junk' – tier.

The underlying holdings are priced in USD, so the fund carries currency exposure between the Australian dollar and the US dollar. At least 90% of assets are held in index components, with at least 95% invested in corporate bonds directly.

9. Janus Henderson AAA CLO ETF ($JAAA)

Janus Henderson AAA CLO ETF (JAAA) share price over the last year: started at US$50.61, ended at US$50.51, a change of −0.2%. Range over the period: high US$50.82, low US$50.37. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$50.51 · Daily: 0.02% · AUM: US$29.51B · MER: 0.20%

Janus Henderson AAA CLO ETF ($JAAA) focuses on a corner of fixed income that doesn't come up in most casual investing conversations: collateralised loan obligations, or CLOs. A CLO is a structured security backed by a pool of corporate loans, and the AAA-rated tranche sits at the top of its repayment hierarchy. The fund's mandate requires at least 90% of its net assets to be held in CLOs carrying that AAA rating, according to the fund's stated objective.

The floating-rate structure is worth understanding. Unlike fixed-rate bonds, the income from these CLOs is designed to reset with prevailing interest rates rather than stay locked to a rate set at issuance. Because $JAAA holds USD-denominated assets and is priced in US dollars, Australian investors carry AUD/USD currency exposure – movements between the two currencies will affect returns when translated back into Australian dollars. The fund's MER is 0.20%.

10. iShares Broad USD High Yield Corporate Bond ETF ($USHY)

iShares Broad USD High Yield Corporate Bond ETF (USHY) share price over the last year: started at US$37.30, ended at US$36.68, a change of −1.7%. Range over the period: high US$37.85, low US$36.44. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$36.68 · Daily: -0.3% · AUM: US$28.56B · MER: 0.08%

iShares Broad USD High Yield Corporate Bond ETF ($USHY) aims to track the BofA Merrill Lynch U.S. High Yield Constrained Index. That index covers dollar-denominated corporate bonds rated below investment grade – a category commonly called high yield or junk bonds – issued for sale in the United States. According to the fund's mandate, at least 90% of its assets are held in index constituents.

High yield bonds carry more credit risk than investment-grade debt, since the companies issuing them hold lower credit ratings. That higher risk profile is what the 'high yield' label reflects – the elevated interest payments are compensation for that additional default risk. For Australian investors, there's also a currency dimension: the underlying bonds are priced in USD, so movements between the Australian dollar and the US dollar affect the value of holdings in AUD terms.

Common questions

How do I invest in U.S. bond ETFs in Australia?

All ten funds in this list trade on U.S. exchanges, so you'll need a platform with access to U.S. markets to buy them. Trades settle in USD, which means your platform converts from AUD at the prevailing rate when you buy or sell. You can search each fund by its ticker and place an order during U.S. market hours.

What are the key risks of U.S. bond ETFs?

Interest rate risk sits at the core of bond investing – when rates rise, bond prices fall, and funds holding longer-dated bonds feel that move more sharply than short-term funds. Credit risk varies across this list: investment-grade funds carry a lower default risk than high-yield funds, though no fund eliminates it entirely. There's also currency risk: all ten funds here are priced in USD, so movements in the AUD/USD rate affect returns measured in Australian dollars.

What kinds of bonds do these funds cover?

The list covers several distinct segments of the bond market. Some funds track the broad U.S. investment-grade market – a mix of government, corporate and mortgage-related debt – while others concentrate on a single corner: short-term Treasury bills, long-dated Treasuries, investment-grade corporates, high-yield corporates, mortgage-backed securities, municipal bonds or AAA-rated collateralised loan obligations (CLOs). Each segment carries a different mix of interest rate sensitivity and credit risk, and that sub-type shapes how a fund responds to interest rate movements.

How does currency exposure work for Australian investors in these funds?

None of the funds here hedge to AUD, so AUD/USD movements flow through all of them. Most hold USD-denominated bonds directly, which makes the currency exposure straightforward. $BNDX is a partial exception – it holds bonds issued in non-USD currencies, but those are hedged back to USD within the fund structure, not to AUD. The AUD/USD exchange rate still runs through $BNDX, just as it does with the others.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

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