With more than 3,900 exchange-traded funds (ETFs) available in the U.S., the fund options for investors are vast. Of these, approximately 780 — or 20% — focus exclusively on bonds.
But this isn’t just about one-size-fits-all aggregate bond ETFs. While there are plenty of low-cost options providing broad exposure to the total bond market, the variety of specialized bond ETFs is remarkable.
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For example, if you’re seeking high monthly income, high-yield bond ETFs holding lower-rated “junk” bonds could fit the bill, though they come with higher default risk.
Prefer safety? Ultra-short-term bond ETFs and Treasury bill ETFs offer principal protection with yields comparable to high-yield savings accounts (HYSAs) and money market funds.
For those looking to speculate on interest rate changes, ETFs targeting longer-term bonds can provide significant upside if rates fall.
Want something even more niche? Alternative fixed-income ETFs focusing on private credit or collateralized loan obligations (CLOs) — traditionally reserved for institutional and accredited investors — are now accessible to retail investors.
If you’re in a high-income bracket and have avoided bonds due to their tax inefficiency, municipal bond ETFs could also offer a solution. These ETFs hold bonds exempt from federal income taxes — and sometimes state taxes — providing significant savings.
The takeaway? No matter your risk tolerance, time horizon or investment goals, there’s likely a bond ETF out there that can meet your needs.
Here’s a look at nine of the best bond ETFs to buy for 2025:
| ETF | Expense ratio | 30-day SEC yield |
| Vanguard Total Bond Market ETF (ticker: BND) | 0.03% | 4.5% |
| Vanguard Ultra-Short Bond ETF (VUSB) | 0.10% | 3.8% |
| Amplify Samsung SOFR ETF (SOFR) | 0.20% | 4.6% |
| iShares 0-3 Month Treasury Bond ETF (SGOV) | 0.09% | 4.4% |
| Schwab Short-Term U.S. Treasury ETF (SCHO) | 0.03% | 4.3% |
| iShares 3-7 Year Treasury Bond ETF (IEI) | 0.15% | 4.2% |
| SPDR Portfolio Long Term Treasury ETF (SPTL) | 0.03% | 4.9% |
| Janus Henderson Mortgage-Backed Securities ETF (JMBS) | 0.23% | 5.2% |
| Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU) | 0.15% | 3.9% |
Vanguard Total Bond Market ETF (BND)
“Investors have seen bond ETFs successfully weather multiple storms in the markets, including the pandemic sell-off in March 2020,” says John Croke, head of investor choice business activation at Vanguard. “Time and again, bond ETFs have demonstrated their resilience and liquidity for investors.”
BND is Vanguard’s flagship bond ETF with more than $121 billion in share class total assets. This ETF provides exposure to more than 11,300 Treasurys, mortgage-backed securities and investment-grade corporate bonds via the Bloomberg U.S. Aggregate Float Adjusted Index. It charges a 0.03% expense ratio and has a 30-day SEC yield of 4.5%.
Vanguard Ultra-Short Bond ETF (VUSB)
“Rich stock prices and attractive current yields are creating demand for bond ETFs — particularly actively managed ETFs — which helps investors who are seeking portfolio diversification with the additional profit potential that comes from active tilts,” says Steve McFee, senior portfolio manager at Vanguard.
VUSB is one of Vanguard’s most popular active bond ETFs. Instead of tracking an index, VUSB’s portfolio manager picks a portfolio of high-quality, short-maturity bonds designed to provide capital preservation. Currently, the ETF is paying a 3.8% 30-day SEC yield and charges a 0.1% expense ratio.
Amplify Samsung SOFR ETF (SOFR)
“As the only ETF designed to track the secured overnight financing rate, a secured rate collateralized by high-quality U.S. Treasurys, SOFR stands out as a unique and stable option for bond investors,” says Christian Magoon, founder and CEO of Amplify ETFs. This ETF can serve as an alternative to HYSAs.
“SOFR offers investors nearly the shortest duration exposure available — overnight — minimizing interest rate risk while providing monthly income,” Magoon says. This ETF is best suited for risk-averse investors looking for a cash substitute. Investors can expect a 0.2% expense ratio and a 4.6% 30-day SEC yield.
iShares 0-3 Month Treasury Bond ETF (SGOV)
“Often overlooked in bond ETFs is liquidity — the ability to buy or sell the security quickly, easily and without a large spread,” says Daniel Dusina, chief investment officer at Blue Chip Partners. “A bond ETF’s liquidity, for the most part, is driven by the liquidity of its underlying securities.”
By holding only Treasury bills with zero to three months in maturity, SGOV trades with a very low 0.01% 30-day median bid-ask spread. “This is important to be aware of when choosing bond ETFs, as a large spread can equate to a worse initial purchase price,” Dusina says. SGOV pays a 4.4% 30-day SEC yield.
Schwab Short-Term U.S. Treasury ETF (SCHO)
“Short-term bond ETFs have compelling yields, which will do well while short-term rates remain high,” says Dave Francis, investment advisor and principal at Bartlett Wealth Management. “They also have the benefit of providing higher rates, even if the Federal Reserve begins reducing the overnight rates.”
Investors looking for short-term Treasury exposure can step up from SGOV via SCHO. This ETF tracks the Bloomberg US Treasury 1-3 Year Index for a 0.03% expense ratio. SCHO currently has an effective duration of 1.9 years, implying minimum interest rate sensitivity. The ETF pays a 4.3% 30-day SEC yield.
iShares 3-7 Year Treasury Bond ETF (IEI)
“Intermediate-term bond ETFs invest in bonds with maturities between three and 10 years,” says Wes Moss, managing partner and chief investment strategist at Capital Investment Advisors. “They offer a balance between risk and return and are suitable for investors who have a medium-term horizon.”
Moving further up the yield curve from SCHO brings investors to ETFs like IEI. This ETF tracks the ICE U.S. Treasury 3-7 Year Bond Index, giving it an intermediate duration of 4.3-years. IEI is currently paying a 4.2% 30-day SEC yield. Like many iShares Treasury ETFs, IEI charges a 0.15% expense ratio.
SPDR Portfolio Long Term Treasury ETF (SPTL)
“Long-term bond ETFs invest in bonds with maturities of more than 10 years, are more sensitive to interest rate changes and may experience greater volatility in their returns,” Moss says. “They are suitable for investors who have a long-term investment horizon and can tolerate higher levels of risk.”
With an average duration of 14.7 years, SPTL’s price is highly sensitive to movements in long-term bond yields. Should yields fall one percentage point, the ETF’s price could see 14.7% in upside, all else being equal. SPTL currently pays a 4.9% 30-day SEC yield and charges a low 0.03% expense ratio.
Janus Henderson Mortgage-Backed Securities ETF (JMBS)
“Mortgage-backed securities (MBS) ETFs offer yields that are comparable to investment-grade corporate bonds, accompanied with high credit quality and monthly cash flows,” Francis says. For example, JMBS is currently paying a 5.2% 30-day SEC yield with a majority of its holdings rated Aa.
This actively managed ETF has historically managed to outperform its benchmark, the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index. So far, it has earned a five-star Morningstar rating, signifying superior risk-adjusted performance in its peer category. JMBS charges a 0.23% expense ratio.
Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU)
“To our knowledge, RVNU is the only ETF providing exposure specifically to revenue-backed municipal bonds used to finance key components of the U.S. infrastructure, such as airports, sewers, toll roads, bridges and tunnels,” says Arne Noack, regional investment head of Xtrackers, Americas at DWS Group.
This ETF currently charges a 0.15% expense ratio and pays a 3.9% 30-day SEC yield. However, due to its tax-exempt nature, the actual tax-equivalent yield for RVNU is higher, especially for high-income bracket investors. Investors can use various online calculators to figure this metric out.
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9 of the Best Bond ETFs to Buy for 2025 originally appeared on usnews.com
Update 01/03/25: This story was previously published at an earlier date and has been updated with new information.
