ETFs can offer a simple and inexpensive way to gain exposure to US Treasuries, and some of them are highly rated by Morningstar’s fund analysts. This comes at a time when the Federal Reserve is cutting interest rates and the market is expecting short-term Treasury bond yields to fall while yields on bonds with longer maturities stay high.
The spread between the 10-year and two-year Treasury yields is 0.50 percentage points on Oct. 30, compared with 0.214 percentage points a year ago. For bond investors, a steeper curve provides opportunities to capture higher yields in longer-dated bonds.
Europe-domiciled exchange-traded funds investing in US government bonds collected nearly €1.2 billion in net inflows in the third quarter of 2025, ending a streak of four quarters of net outflows.
Screening For the Best USD Government Bond ETFs
To help investors find ETFs focused on US Treasuries, we’ve screened 33 ETFs in Morningstar’s USD Government Bond category for those with Gold and Silver Medalist Ratings.
A Gold Rating means our analysts believe a fund has the greatest chance of outperforming its category over the long term, while a Silver Rating means they believe it will outperform its relevant performance benchmark and/or peer group.
A number of different providers make the list:
- SPDR Bloomberg US Treasury Bond UCITS ETF
- Vanguard USD Treasury Bond UCITS ETF
- Invesco US Treasury Bond 3-7 Year UCITS ETF
- Amundi US Treasury Bond 3-7 UCITS ETF
- Xtrackers US Treasuries ETF 1D
- Amundi US Treasury Bond Long Dated UCITS ETF
- iShares $ Treasury Bond ETF
- iShares $ Treasury Bond 20+ Yr UCITS ETF
- Deka US Treasury 7-10 ETF
- iShares $ Treasury Bond 7-10 Yr UCITS ETF
We screened for ETFs with Gold or Silver Medalist Ratings that manage at least €200 million. None of the 10 ETFs that made it through the screen is actively managed.
Here’s a closer look at the three Gold-rated strategies:
SPDR Bloomberg US Treasury Bond UCITS ETF
The €237.3 million SPDR Bloomberg US Treasury Bond UCITS ETF fell 3.89% over the past year. The fund fell further than its benchmark, the Morningstar US Government Bond Index, by 3.33 percentage points. Year to date, the State Street fund fell 7.09%.
Vanguard USD Treasury Bond UCITS ETF
The €2.5 billion Vanguard USD Treasury Bond UCITS ETF fell 0.6% over the past year. The fund fell further than its benchmark, the Morningstar US Government Bond Index, by 0.04 percentage points. Year to date, the Vanguard fund fell 4.82%.
Invesco US Treasury Bond 3-7 Year UCITS ETF
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★★
The €232.4 million Invesco US Treasury Bond 3-7 Year UCITS ETF rose 0.28% over the past year. The fund beat its benchmark, the Morningstar US Government Bond Index, by 0.84 percentage points. Year to date, the Invesco fund fell 4.29%.
