Unsurprisingly, thanks to their economies of scale, brand-name recognition and deep capital bases, BlackRock and Vanguard continue to dominate the exchange-traded fund, or ETF, industry.
That dominance is especially visible in fixed income, where the two largest bond ETFs by assets under management, or AUM, are the Vanguard Total Bond Market ETF (ticker: BND) at roughly $153 billion and the iShares Core U.S. Aggregate Bond ETF (AGG) at about $136 billion.
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These two funds share several similarities. First, both are inexpensive, charging just 0.03% annually in expense ratios. Second, both use an “aggregate bond” approach, meaning they broadly diversify across thousands of investment-grade securities including short-, intermediate- and long-term corporate bonds, U.S. Treasurys, and mortgage-backed securities, or MBS.
In practice, aggregate bond ETFs like BND and AGG are often used as ballast within a traditional 60-40 balanced portfolio, where investors allocate 60% to equities and 40% to fixed income.
As popular as aggregate bond ETFs have become, investors should recognize that these strategies are largely “jack of all trades, master of none” solutions. Their diversification and low fees are appealing, but they are not necessarily the highest yielding, most tax-efficient or resilient to interest rate moves.
Investors seeking higher income, lower duration risk, inflation protection or specialized credit exposure may need to look beyond broad aggregate bond ETFs to express a more targeted thesis.
Fortunately, the U.S.-listed, fixed-income ETF universe has expanded enormously. Investors now have access to over 900 bond ETFs spanning everything from ultra-short Treasurys and municipal bonds to private credit and even collateralized loan obligations, or CLOs.
Those willing to tailor their fixed-income allocation can therefore find many bond ETFs capable of complementing or augmenting a traditional aggregate bond strategy.
“With yields still elevated, volatility lingering and central banks exercising caution, we believe bonds will continue to drive portfolio returns,” says JoAnne Bianco, partner and senior investment strategist at BondBloxx, an asset manager specializing in fixed-income ETFs.
Here are nine of the best bond ETFs to buy for 2026:
| ETF | Expense Ratio | 30-day SEC Yield |
| Vanguard Government Securities Active ETF (VGVT) | 0.10% | 4.1% |
| Vanguard High-Yield Active ETF (VGHY) | 0.22% | 6.3% |
| Vanguard Mortgage-Backed Securities ETF (VMBS) | 0.03% | 4.1% |
| iShares 0-3 Month Treasury Bond ETF (SGOV) | 0.09% | 3.5% |
| iShares National Muni Bond ETF (MUB) | 0.05% | 3.4% |
| iShares Flexible Income Active ETF (BINC) | 0.40% | 5.2% |
| State Street Blackstone High Income ETF (HYBL) | 0.70% | 6.7% |
| State Street SPDR S&P Leveraged Loan ETF (LVLN) | 0.40% | 6.9% |
| State Street IG Public & Private Credit ETF (PRIV) | 0.55% | 4.5% |
Vanguard Government Securities Active ETF (VGVT)
“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.”
Government bond-only ETFs like VGVT will yield less than a corporate bond ETF of similar maturity, but they come with better credit quality. This makes them more suitable for investors with a lower risk tolerance. VGVT currently delivers a 4.1% 30-day SEC yield and charges a reasonable 0.1% expense ratio.
Vanguard High-Yield Active ETF (VGHY)
“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 Stephen McFee, senior portfolio manager at Vanguard.
Vanguard’s active bond ETFs rank among the most affordable in the industry. For high-yield bonds, also known as junk bonds, the firm offers VGHY at a 0.22% expense ratio. This ETF’s lower credit quality clocks in at a “3 out of 5” on Vanguard’s risk-reward scale, but it pays a higher 6.3% 30-day SEC yield.
Vanguard Mortgage-Backed Securities ETF (VMBS)
“MBS ETFs offer yields that are comparable to investment-grade corporate bonds, accompanied with high credit quality and monthly cash flows,” says Dave P. Francis, investment advisor and principal at Bartlett Wealth Management. These bond ETFs provide real estate-linked cash flows with lower risk.
Low-cost and diversified MBS exposure can be achieved by allocating to VMBS, which charges a 0.03% expense ratio and pays a 4.1% 30-day SEC yield. The ETF’s portfolio of over 1,400 MBS are issued by Ginnie Mae, Fannie Mae and Freddie Mac. Vanguard rates VMBS a “2 out of 5” on its risk-reward scale.
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.”
If liquidity is a priority, SGOV is hard to beat. This low-risk ETF tracks the ICE 0-3 Month US Treasury Securities Index and trades with a narrow 30-day median bid-ask spread of just 0.01%. After deducting a 0.09% expense ratio, investors currently receive a 3.5% 30-day SEC yield with monthly payouts.
[Read: 7 of the Best Fidelity Bond Funds to Buy for Steady Income]
iShares National Muni Bond ETF (MUB)
Bond ETF taxation can be a mixed bag. While Treasury-only ETFs may receive exemptions from state and local taxes, corporate bond income is generally taxed as ordinary income at both the federal and state level, which can materially reduce after-tax returns for high-income-bracket investors.
A more tax-efficient alternative is a municipal bond ETF like MUB. This bond ETF’s 3.4% 30-day SEC yield is exempt from federal income taxes, which iShares estimates equates to a 5.8% tax-equivalent yield for investors in the highest federal tax bracket. MUB charges a low 0.05% expense ratio.
iShares Flexible Income Active ETF (BINC)
Before Kevin Warsh was appointed chairman of the Federal Reserve, financial media had speculated that Rick Rieder, BlackRock’s chief investment officer of global fixed income, could emerge as a replacement for Jerome Powell. Rieder oversees BINC, an actively managed bond ETF with $17 billion in AUM.
As suggested by its name, BINC has a flexible mandate. Rieder’s discretion results in eclectic allocations across high-yield credit, emerging-market debt, commercial MBS, asset-backed securities, bank loans and CLOs. After deducting a 0.4% expense ratio, BINC currently delivers a 5.2% 30-day SEC yield.
State Street Blackstone High Income ETF (HYBL)
“In an uncertain macro environment where inflation and growth risks are stoking rate volatility and credit spreads remain tight, we believe bond returns are likely to rely more on income,” argues Matthew Bartolini, managing director and global head of research strategists at State Street Investment Management.
Income investors who don’t mind forking over a high 0.7% expense ratio may find HYBL’s 6.7% 30-day SEC yield appealing. This active bond ETF allocates across high-yield corporate bonds, senior loans and CLOs. It is sub-advised by a subsidiary of alternative asset manager Blackstone Inc. (BX).
State Street SPDR S&P Leveraged Loan ETF (LVLN)
“Many active portfolios remain concentrated in traditional sources of credit income, particularly fixed-rate, high-yield and investment-grade corporate bonds,” Bartolini explains. “Incorporating floating-rate exposures can help maintain attractive yield levels while reducing overall volatility.”
The underlying senior loans in LVLN sit higher in the capital structure than traditional high-yield bonds and carry floating interest rates. This helps improve recovery rates in the event of default and reduces sensitivity to rising interest rates. After its 0.4% expense ratio, LVLN pays a 6.9% 30-day SEC yield.
State Street IG Public & Private Credit ETF (PRIV)
PRIV is a unique bond ETF with a hybrid structure, spanning both public investment-grade corporate bonds and private credit sourced through Apollo Global Management. The ETF has grown to over $850 million in AUM since launching in February 2025. PRIV currently pays a 4.5% 30-day SEC yield.
“By combining investment-grade public and private credit, PRIV provides a core-plus strategy that may provide diversified alpha opportunities and attractive carry, with a yield premium over core bonds and above benchmark performance since inception,” Bartolini says. PRIV charges a 0.55% expense ratio.
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9 of the Best Bond ETFs to Buy for 2026 originally appeared on usnews.com
Update 05/29/26: This story was published at an earlier date and has been updated with new information.
