Best Bond ETFs (2026)

Which bond fund to hold as portfolio ballast or for income — 64 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.

Updated July 25, 2026

Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.

Top Picks Right Now

#1
USHY
iShares Broad USD High Yield Corporate Bond ETF
C 62.4/100
  • scores 62.4 on the overall model (grade C)
#2
SPHY
State Street SPDR Portfolio High Yield Bond ETF
C 61.5/100
  • highest yield here at 7.24%
#3
VWOB
Vanguard Emerging Markets Government Bond Index Fund
C 60.7/100
  • scores 60.7 on the overall model (grade C)

Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.

At a Glance

Cheapest
VCIT
0.03%
Highest yield
SPHY
7.24%
Best risk-adjusted
EMHY
Sharpe 0.86
Largest
BND
$397.9B
Shallowest drawdown
SGOV
-0.0%

Each superlative is measured within this group of 64 funds, not across the whole market.

All 64 Funds Ranked

FundCategoryCostYield1Y3YVolatilityMax DDSharpeAUMScoreGrade
1 USHYiShares Broad USD High Yield Corporate Bond ETFUS Bonds - Corporate0.08%6.89%+4.8%+26.6%3.7%-4.7%-0.06$28.5B62.4C
2 SPHYState Street SPDR Portfolio High Yield Bond ETFUS Bonds - Corporate0.05%7.24%+4.9%+26.3%3.7%-4.8%-0.03$11.3B61.5C
3 VWOBVanguard Emerging Markets Government Bond Index FundInternational Bonds0.15%5.81%+7.0%+25.3%5.3%-7.7%0.38$6.8B60.7C
4 EMBiShares J.P. Morgan USD Emerging Markets Bond ETFInternational Bonds0.39%5.02%+7.7%+26.2%5.6%-8.0%0.49$14.6B60.6C
5 MBBiShares MBS ETFMortgage-Backed0.04%4.26%+4.5%+13.1%4.4%-7.2%-0.11$39.6B60.3C
6 VCITVanguard Intermediate-Term Corporate Bond Index Fund ETF SharesUS Bonds - Corporate0.03%4.78%+3.2%+17.5%4.1%-6.0%-0.45$69.4B60.1C
7 VCSHVanguard Short-Term Corporate Bond Index Fund ETF SharesUS Bonds - Corporate0.03%4.44%+3.4%+16.8%1.9%-1.4%-0.81$51.8B60.0C
8 VTIPVanguard Short-Term Inflation-Protected Securities Index Fund ETF SharesUS Bonds - TIPS0.03%3.60%+3.3%+15.8%1.6%-1.0%-1.08$71.1B60.0C
9 VMBSVanguard Mortgage-Backed Securities Index Fund ETF SharesMortgage-Backed0.03%4.17%+4.8%+13.8%4.3%-7.2%-0.05$17.3B59.8C
10 AGGiShares Core U.S. Aggregate Bond ETFUS Bonds - Broad0.03%2.55%+3.1%+11.7%3.8%-5.7%-0.50$138.8B59.4C
11 EMHYiShares J.P. Morgan EM High Yield Bond ETFInternational Bonds0.50%6.37%+9.9%+37.9%5.7%-6.0%0.86$607M59.3C
12 BNDVanguard Total Bond Market Index FundUS Bonds - Broad0.03%3.95%+3.0%+11.6%3.7%-5.6%-0.54$397.9B59.2C
13 SGOViShares 0-3 Month Treasury Bond ETFUS Bonds - Government0.09%3.85%+3.9%+14.5%0.2%-0.0%-5.94$95.9B59.2C
14 IGSBiShares 1-5 Year Investment Grade Corporate Bond ETFUS Bonds - Corporate0.04%4.57%+3.5%+17.3%2.0%-1.5%-0.75$22.3B58.8C
15 IUSBiShares Core Universal USD Bond ETFUS Bonds - Broad0.06%4.21%+3.3%+13.3%3.6%-5.5%-0.48$42.8B58.7C
16 IGIBiShares 5-10 Year Investment Grade Corporate Bond ETFUS Bonds - Corporate0.04%4.79%+3.3%+18.1%4.1%-5.9%-0.42$18.5B58.1C
17 BNDXVanguard Total International Bond Index FundInternational Bonds0.07%4.46%+1.5%+12.1%3.5%-2.9%-0.99$123.3B57.7C
18 SPMBState Street SPDR Portfolio Mortgage Backed Bond ETFMortgage-Backed0.04%4.07%+4.6%+12.9%4.2%-7.3%-0.09$7.1B57.7C
19 SHYGiShares 0-5 Year High Yield Corporate Bond ETFUS Bonds - Corporate0.30%7.00%+4.6%+24.1%3.2%-4.5%-0.13$7.6B57.5C
20 STIPiShares 0-5 Year TIPS Bond ETFUS Bonds - TIPS0.03%4.32%+3.3%+15.8%1.5%-0.9%-1.12$15.9B57.5C
21 BILState Street SPDR Bloomberg 1-3 Month T-Bill ETFUS Bonds - Government0.14%3.85%+3.8%+14.3%0.2%-0.0%-5.96$47.1B57.4C
22 ANGLVanEck Fallen Angel High Yield Bond ETFUS Bonds - Corporate0.25%6.32%+5.2%+24.6%4.3%-5.5%0.05$3.1B57.4C
23 VGITVanguard Intermediate-Term Treasury Index Fund ETF SharesUS Bonds - Government0.03%3.85%+2.1%+11.2%3.4%-4.3%-0.86$50.4B57.2C
24 USIGiShares Broad USD Investment Grade Corporate Bond ETFUS Bonds - Corporate0.04%4.72%+3.0%+15.1%4.1%-5.9%-0.49$17.6B57.1C
25 JNKState Street SPDR Bloomberg High Yield Bond ETFUS Bonds - Corporate0.40%4.45%+4.9%+25.5%3.8%-5.0%-0.02$7.3B57.1C
26 VGSHVanguard Short-Term Treasury Index Fund ETF SharesUS Bonds - Government0.03%3.87%+2.9%+13.2%1.3%-1.0%-1.58$33.8B56.9C
27 FALNiShares Fallen Angels USD Bond ETFUS Bonds - Corporate0.25%6.41%+5.7%+27.3%4.6%-5.9%0.14$1.6B56.9C
28 GOVTiShares U.S. Treasury Bond ETFUS Bonds - Government0.05%3.57%+2.3%+9.0%3.6%-4.9%-0.76$43.7B56.7C
29 HYGiShares iBoxx $ High Yield Corporate Bond ETFUS Bonds - Corporate0.49%4.80%+4.3%+25.3%3.8%-4.6%-0.18$17.6B56.3C
30 SCHPSchwab U.S. TIPS ETFUS Bonds - TIPS0.03%4.00%+2.7%+11.4%3.3%-4.3%-0.70$16.5B56.3C
31 PCYInvesco Emerging Markets Sovereign Debt ETFInternational Bonds0.50%5.81%+8.8%+27.7%7.3%-11.5%0.52$1.4B56.1C
32 SPABState Street SPDR Portfolio Aggregate Bond ETFUS Bonds - Broad0.03%4.03%+3.1%+11.7%3.7%-5.7%-0.51$9.6B55.6C
33 USFRWisdomTree Floating Rate Treasury FundUS Bonds - Government0.15%3.84%+4.0%+14.2%0.3%-0.4%-3.66$17.8B55.6C
34 SCHZSchwab U.S. Aggregate Bond ETFUS Bonds - Broad0.03%4.10%+3.0%+11.6%3.7%-5.8%-0.52$10.6B55.5C
35 SCHOSchwab Short-Term U.S. Treasury ETFUS Bonds - Government0.03%3.90%+2.9%+13.2%1.4%-1.0%-1.48$13.0B55.4C
36 FBNDFidelity Total Bond ETFUS Bonds - Broad0.36%4.69%+3.4%+13.7%3.8%-5.6%-0.43$26.6B55.2C
37 SCHRSchwab Intermediate-Term U.S. Treasury ETFUS Bonds - Government0.03%3.90%+2.1%+11.2%3.4%-4.3%-0.83$13.4B55.1C
38 SJNKState Street SPDR Bloomberg Short Term High Yield Bond ETFUS Bonds - Corporate0.40%7.00%+4.3%+24.2%3.2%-4.8%-0.21$4.9B55.1C
39 SHYiShares 1-3 Year Treasury Bond ETFUS Bonds - Government0.15%0.38%+2.8%+12.8%1.4%-1.0%-1.60$25.4B55.0C
40 LQDiShares iBoxx $ Investment Grade Corporate Bond ETFUS Bonds - Corporate0.14%3.00%+2.1%+12.5%5.3%-8.2%-0.54$33.1B55.0C
41 IEFiShares 7-10 Year Treasury Bond ETFUS Bonds - Government0.15%1.01%+2.1%+8.3%4.7%-7.0%-0.61$47.1B54.9C
42 SPTIState Street SPDR Portfolio Intermediate Term Treasury ETFUS Bonds - Government0.03%3.85%+2.1%+11.2%3.4%-4.3%-0.85$10.2B54.6C
43 SLQDiShares 0-5 Year Investment Grade Corporate Bond ETFUS Bonds - Corporate0.06%4.31%+3.6%+16.4%1.5%-1.1%-0.92$2.4B54.6C
44 TFLOiShares Treasury Floating Rate Bond ETFUS Bonds - Government0.15%3.89%+4.0%+14.6%0.3%-0.0%-3.60$6.6B54.4C
45 GBILGoldman Sachs Access Treasury 0-1 Year ETFUS Bonds - Government0.12%3.73%+3.8%+14.3%0.2%-0.8%-5.31$7.7B54.3C
46 SPTSState Street SPDR Portfolio Short Term Treasury ETFUS Bonds - Government0.03%3.90%+3.0%+13.3%1.3%-1.0%-1.52$5.9B54.3C
47 IEIiShares 3-7 Year Treasury Bond ETFUS Bonds - Government0.15%3.63%+2.0%+11.5%3.0%-3.7%-1.00$18.3B54.2C
48 TIPiShares TIPS Bond ETFUS Bonds - TIPS0.18%1.16%+2.4%+10.8%3.5%-4.4%-0.75$14.7B54.1C
49 VCLTVanguard Long-Term Corporate Bond Index Fund ETF SharesUS Bonds - Corporate0.03%5.52%+1.8%+8.5%7.8%-12.5%-0.41$10.1B53.0C
50 VTCVanguard Total Corporate Bond ETF ETF SharesUS Bonds - Corporate0.03%4.91%+2.8%+14.2%4.3%-6.2%-0.50$1.8B52.7C
51 BNDWVanguard Total World Bond ETFUS Bonds - Broad0.05%4.19%+2.3%+12.1%3.4%-4.1%-0.80$1.9B52.3C
52 TDTTFlexShares iBoxx 3-Year Target Duration TIPS Index FundUS Bonds - TIPS0.18%4.57%+2.9%+15.1%1.9%-1.5%-1.11$2.6B52.2C
53 GNMAiShares GNMA Bond ETFMortgage-Backed0.10%4.22%+4.3%+12.6%4.2%-6.9%-0.16$429M52.1C
54 VGLTVanguard Long-Term Treasury Index Fund ETF SharesUS Bonds - Government0.03%4.56%+1.7%-2.3%8.5%-16.2%-0.39$15.2B51.2C
55 TLHiShares 10-20 Year Treasury Bond ETFUS Bonds - Government0.15%4.44%+2.0%+1.9%7.7%-14.1%-0.39$11.3B51.2C
56 SPTLState Street SPDR Portfolio Long Term Treasury ETFUS Bonds - Government0.03%4.17%+1.7%-2.2%8.5%-16.1%-0.39$10.5B50.7C
57 TLTiShares 20+ Year Treasury Bond ETFUS Bonds - Government0.15%2.59%+1.2%-5.7%9.3%-17.5%-0.41$41.1B49.5D
58 SCHQSchwab Long-Term U.S. Treasury ETFUS Bonds - Government0.03%4.73%+1.7%-2.3%8.5%-16.1%-0.39$759M46.5D
59 IGOViShares International Treasury Bond ETFInternational Bonds0.35%1.43%-4.0%+4.0%8.0%-10.7%-1.12$1.4B44.1D
60 BWXState Street SPDR Bloomberg International Treasury Bond ETFInternational Bonds0.35%2.39%-5.4%+0.1%7.5%-10.2%-1.38$1.3B43.3D
61 LTPZPIMCO 15+ Year U.S. TIPS Index Exchange-Traded FundUS Bonds - TIPS0.20%5.23%-0.5%-5.5%9.1%-15.6%-0.60$708M43.2D
62 IBNDState Street SPDR Bloomberg International Corporate Bond ETFInternational Bonds0.50%2.76%-3.0%+14.8%7.9%-9.2%-1.01$462M42.5D
63 EDVVanguard Extended Duration Treasury Index Fund ETF SharesUS Bonds - Government0.05%4.91%-0.3%-16.0%14.0%-24.6%-0.38$4.2B42.1D
64 ZROZPIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded FundUS Bonds - Government0.15%5.03%-1.2%-22.0%15.4%-26.5%-0.40$1.4B37.4D

Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.

What Makes a Good Fund Here

Bond funds differ along two axes that matter far more than fee: duration (how much they fall when rates rise) and credit quality (how much they fall when the economy weakens). A fund yielding more than its peers is nearly always taking more of one or the other.

The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.

Head-to-Head Comparisons

Full metric-by-metric breakdowns for the closest calls in this group.

Frequently Asked Questions

What is the best bond ETF?

USHY ranks highest of the 64 fixed-income funds tracked, with a score of 62.4 (C). The highest-yielding is SPHY at 7.24% — though in fixed income, extra yield is compensation for extra duration or credit risk, not a free gain.

Are bond ETFs safe?

Safer than equities, but not risk-free. Bond funds fall when interest rates rise, and corporate or high-yield funds fall when default risk rises. Short-duration government funds are the most stable; long-duration funds can drop double digits.

How much of my portfolio should be in bonds?

That depends on your time horizon and tolerance for drawdowns rather than on any universal rule. The relevant question is how long you could wait for a recovery before needing the money.

Compare any of these funds directly

Side-by-side metrics, holdings overlap and return correlation for any pair.

Other Rankings