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

Bond ETFs hold fixed-income securities – government bonds, corporate debt, mortgage-backed notes and similar instruments – bundled into a single fund that trades on an exchange like a stock. The ten funds in this list cover very different parts of the bond market, from ultra-short US Treasury bills ($BIL) to decades-long government debt ($TLT). One of them, $JAAA, holds AAA-rated collateralised loan obligations (CLOs) rather than traditional bonds.

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 6 October 2026.

✅ Learn more: Top 10 U.S. high yield bond ETFs to watch in 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$99.96, ended at US$94.36, a change of −5.6%. Range over the period: high US$101.40, low US$94.13. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$94.36 · Daily: 0.2% · AUM: US$135.77B · MER: 0.03%

Covering the total US investment-grade bond market, iShares Core US Aggregate Bond ETF ($AGG) is designed to track the Bloomberg US Aggregate Bond Index. The index sets a credit-quality floor – bonds that don't meet the investment-grade threshold, as determined by the index provider, don't qualify for inclusion. That makes $AGG a broad-market fixed-income fund rather than one focused on a particular issuer type or segment of the yield curve.

The fund's holdings are intended to mirror the index's composition, which shifts as bonds enter or exit the qualifying tier. Rather than making active selections within the bond market, $AGG aims to replicate what the Bloomberg US Aggregate covers at any given time.

2. Vanguard Total International Bond ETF ($BNDX)

Vanguard Total International Bond ETF (BNDX) share price over the last year: started at US$49.30, ended at US$46.85, a change of −5.0%. Range over the period: high US$49.91, low US$46.79. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$46.85 · Daily: 0.1% · AUM: US$82.80B · MER: 0.07%

The fixed-income universe beyond the US dollar is what Vanguard Total International Bond ETF ($BNDX) is built around. It's designed to track the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged) – an index that measures the performance of investment-grade bonds issued in currencies other than the US dollar. Investment-grade refers to bonds that meet a minimum credit-quality threshold; issuers in this tier carry lower default risk than high-yield bonds. The fund is currency-hedged.

The indexing approach means $BNDX aims to replicate the index's composition rather than rely on active manager decisions. Because the index covers only non-US dollar bonds, the fund's holdings sit entirely outside US dollar-denominated fixed income.

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$91.51, ended at US$91.45, a change of −0.1%. Range over the period: high US$91.76, low US$91.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$91.45 · Daily: 0.01% · AUM: US$50.81B · MER: 0.14%

The State Street SPDR Bloomberg 1-3 Month T-Bill ETF ($BIL) is designed to track the Bloomberg 1-3 Month US Treasury Bill Index, which covers the shortest end of the US government debt market. Treasury bills in this range mature within one to three months, making them the briefest fixed-income instruments the US government issues.

To do that, $BIL uses a sampling strategy – meaning the fund aims to replicate the index's performance without necessarily holding every security in it. That approach keeps the portfolio manageable given the large number of individual T-bill issues that can exist at any one time.

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

iShares 20+ Year Treasury Bond ETF (TLT) share price over the last year: started at US$88.67, ended at US$77.28, a change of −12.8%. Range over the period: high US$92.06, low US$77.11. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$77.28 · Daily: 0.2% · AUM: US$47.36B · MER: 0.15%

The iShares 20+ Year Treasury Bond ETF ($TLT) is designed to track the long-term sector of the U.S. Treasury market, as defined by the Barclays Capital 20+ Year Treasury Index. The portfolio holds U.S. government bonds with maturities of at least 20 years. Bonds at this end of the maturity spectrum are more sensitive to interest rate movements than shorter-dated debt. Prices can shift significantly when rate expectations change.

5. iShares National Muni Bond ETF ($MUB)

iShares National Muni Bond ETF (MUB) share price over the last year: started at US$106.46, ended at US$101.02, a change of −5.1%. Range over the period: high US$108.92, low US$100.28. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$101.02 · Daily: -0.10% · AUM: US$47.94B · MER: 0.05%

The iShares National Muni Bond ETF ($MUB) is designed to track the ICE AMT-Free US National Municipal Index. The index covers investment-grade, tax-exempt debt issued by U.S. states and their political subdivisions – cities, counties and other local government bodies raising money through public bond markets.

The AMT-free construction means the index draws only from bonds that fall outside the scope of the alternative minimum tax, a filter applied at the index level rather than the fund level. That gives $MUB a defined, screened slice of the U.S. municipal bond market rather than the full universe of muni debt.

6. Vanguard Short-Term Corporate Bond ETF ($VCSH)

Vanguard Short-Term Corporate Bond ETF (VCSH) share price over the last year: started at US$79.70, ended at US$77.21, a change of −3.1%. Range over the period: high US$80.20, low US$77.02. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$77.21 · Daily: 0.2% · AUM: US$43.96B · MER: 0.03%

Tracking the Barclays Capital U.S. 1–5 Year Corporate Bond Index, Vanguard Short-Term Corporate Bond ETF ($VCSH) focuses on US corporate bonds with maturities between one and five years. The index is market-weighted, meaning each bond's allocation reflects its outstanding value in the market. $VCSH takes a passive indexing approach, aiming to replicate the index's composition rather than making active bond selections.

7. iShares MBS ETF ($MBB)

iShares MBS ETF (MBB) share price over the last year: started at US$94.90, ended at US$89.36, a change of −5.8%. Range over the period: high US$96.91, low US$89.09. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$89.36 · Daily: 0.3% · AUM: US$35.34B · MER: 0.04%

iShares MBS ETF ($MBB) is designed to track the investment-grade agency mortgage-backed securities (MBS) sector of the U.S. bond market. It follows the Barclays Capital U.S. MBS Fixed-Rate Index, which covers fixed-rate securities issued by three government-related agencies: GNMA (Ginnie Mae), FHLMC (Freddie Mac) and FNMA (Fannie Mae). MBS are bonds backed by pools of home loans, where the underlying mortgage payments pass through to the bondholder. Maturities in the index cover 15-, 20- and 30-year terms, alongside balloon securities.

8. Janus Henderson AAA CLO ETF ($JAAA)

Janus Henderson AAA CLO ETF (JAAA) share price over the last year: started at US$50.59, ended at US$50.50, 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$50.50 · Daily: 0.02% · AUM: US$31.95B · MER: 0.20%

Janus Henderson AAA CLO ETF ($JAAA) invests in collateralised loan obligations rated AAA. Under normal circumstances, at least 90% of the fund's assets go into CLOs of any maturity carrying that rating. The underlying instruments are floating-rate, meaning the coupons adjust with prevailing interest rates rather than sitting at a fixed level. The fund states capital preservation and current income as its objectives. CLOs are not capital protected, and they carry credit and liquidity risk.

9. 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$111.19, ended at US$102.14, a change of −8.1%. Range over the period: high US$112.92, low US$101.83. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$102.14 · Daily: 0.3% · AUM: US$26.92B · MER: 0.14%

Corporate bond exposure within the investment grade tier is what iShares iBoxx $ Inv Grade Corporate Bond ETF ($LQD) is built around. The fund aims to track the Markit iBoxx USD Liquid Investment Grade Index – a rules-based benchmark of US dollar-denominated bonds that meet both liquidity and credit quality thresholds. Investment grade means the bonds sit above the speculative tier, with issuers carrying credit ratings that clear a minimum standard set by ratings agencies.

The index applies a liquidity screen, so $LQD holds bonds that are actively traded rather than harder-to-sell corners of the corporate debt market. At least 95% of the fund goes into corporate bonds, with at least 90% invested directly in the index's component securities.

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$37.59, ended at US$35.69, a change of −5.1%. Range over the period: high US$37.80, low US$35.50. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$35.69 · Daily: 0.4% · AUM: US$25.44B · MER: 0.08%

The 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 issued by companies whose credit ratings fall below investment grade – a segment often called high yield, or colloquially, junk bonds. These issuers typically pay higher interest rates to attract lenders, which is where the label comes from. The fund is designed to hold at least 90% of its assets in the index's component securities.

Bonds rated below investment grade carry a higher probability of default than government debt or investment-grade corporate paper. The fund's portfolio is exposed to that credit risk across a broad range of U.S. companies.

➡️ Top U.S.-listed index funds to watch in 2026→

Common questions

How do I invest in U.S. bond ETFs in New Zealand?

You buy these funds through a platform that offers access to U.S. markets – they all trade on U.S. exchanges in USD. Your NZD converts to USD at purchase, and the NZD/USD rate then affects what you get back when you sell and convert home.

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

Interest rate risk sits at the centre of bond investing: when U.S. rates rise, bond prices generally fall, and longer-duration funds feel that more acutely than short-duration ones. Credit risk varies too – investment-grade funds hold debt from more financially stable issuers, while high-yield funds carry greater default risk. For NZ investors there's also currency to contend with: every fund here is priced in USD, so the NZD/USD rate shapes what a holding is worth in local terms.

How do the bond ETFs in this list differ from one another?

The funds here cover several distinct corners of the bond market. On the government side, $BIL holds very short-term U.S. Treasury bills while $TLT tracks 20-plus-year Treasuries – very different interest-rate sensitivities. Corporate bond funds range from investment-grade ($LQD) to high yield ($USHY), and the list also includes mortgage-backed securities ($MBB), U.S. municipal bonds ($MUB), non-USD international bonds hedged to USD ($BNDX), and AAA-rated collateralised loan obligations (CLOs) via $JAAA. Fees run from 0.03% to 0.20% across those categories.

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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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This article combines AI and human review from our analysts to bring you accurate, informative investing content at speed. For questions or suggestions, contact stakedesk@stake.com.au.