The 10 Best Treasury Bond ETFs (2 From Vanguard) for 2025

Treasury bonds are usually the best tool for downside protection and volatility reduction in a diversified investment portfolio alongside stocks. Here we’ll look at the best treasury bond ETFs.

// TIMESTAMPS:

00:00 - Intro - Why Treasury Bonds?
01:45 - SGOV
02:14 - CLTL
02:33 - SCHO
02:57 - SCHR
03:15 - IEF
03:37 - GOVT
04:02 - TLH
04:26 - VGLT
04:44 - TLT
05:04 - EDV
05:25 - Outro

// SUMMARY:

The federal government issues bonds to investors to pay for operating costs in running the country. Because they’re guaranteed by the full faith and credit of the U.S. government, treasury bonds are considered to be the “safest” investment, and are thus popular among retirees and risk-averse investors. More importantly, treasury bonds offer the lowest correlation to stocks of any asset class, providing a superior diversification benefit compared to corporate bonds. As a result, treasury bonds should typically be the first diversifier of choice alongside stocks.

Treasury bond behavior differs among different maturity lengths along the yield curve. Ultra-short-term treasury bonds with a maturity of less than 1 year are called “T Bills.” They are considered to be a “cash equivalent” because of their nearly nonexistent exposure to interest rate risk. This safety also comes with the lowest expected returns. On the flip side are “long bonds” with maturities greater than 20 years. In between those are “intermediate term” bonds with maturities of 5 years, 7 years, 10 years, etc. Various funds offer baskets of bonds of specific maturities.

Long-term bonds offer more risk with the potential for more reward, having the most exposure to interest rate risk. Longer-term bonds also tend to be less correlated to stocks than shorter-term bonds. As the names suggest, long-term bonds are more appropriate for investors with a long time horizon, and short-term bonds are more appropriate for retirees with a short-time horizon. I’m of the mind that bond duration should roughly match the investing horizon, especially for those with an aggressive asset allocation that only allocates a small amount of the portfolio to bonds.

Now let’s look at the best treasury bond ETFs:
SGOV
CLTL
SCHO
SCHR
IEF
GOVT
TLH
VGLT
TLT
EDV

#investing #bonds #treasurybills

// INVEST

// SOCIAL

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[OptimizedPortfolio]

What are your treasury bond ETFs of choice?

[smalltalk.productions]

i am a very appreciative subscriber. thanks for the effort and sharing. with the upcoming debt ceiling crisis, how do you imagine treasuries are going to be impacted? thumbs up.

[clarkegm]

Appreciate the content! Would SGOV be fine to hold in a taxable account? Is that where you hold yours?

[terrance]

Thank you for just putting me on to these picks I have found only one but you really got me excited on these👌🏾

[willsamuel]

@OptimizedPortfolio
could you do a video covering international bond funds? What are the best options for total international bonds (e.g., BNDX, but is there an unhedged option?), emerging markets debt, and international treasuries?

[Denny_Dust]

We've got 60K in cash that we're unsure about investing in stocks due to potential recession, and may need to buy a new vehicle soon (cash) so I'm thinking SGOV may be good for us. Currently showing around 4.80% yield which is better than just sitting in savings at 0.05%.

[kannaballistic]

Must be laundry day for John or he got a new shirt 😊

[JosephDickson]

I'm currently holding SGOV for cash I intend to spend in under five years.

[kurtsalm]

SGOV pays dividends monthly. How about the others?

[gnvsemxnq]

Tks a lot. What is equivalent ireland-domicile etf for TLT or any 100% US govt bonds etf ? Tks

[NivHaramati]

Thanks for the video! General question: is timing a bond-etf is even a thing? or it doesn't matter? I think that short duration bonds (like STIP or SGOV) are self-adjusting to interest rates and inflation, but what about long duration ones (like TLT or EDV) - is there a better market time (situation) to buy these? Thanks!

[d.s.]

Which of these funds besides TLT would be best to write options?

[ideapowerfulweapon]

I want to purchase IEF cause 5 years average duration of VGIT seems too short and almost like a short term bond fund. But IEF is 0.15% expesne ratio and I can't get myself to purchase. Could do 75% VGIT & 25% VGLT but that's takes away some simplicity. So I stick with VGIT. < Can you believe this round & round argument is what goes on in my head the most in regards to finances for the past few years.

[ryanjamesr_]

Idk if this is a weird question but if it says 0-3 month short term bond, does that mean I can only hold it for that long for does it matter how long I hold it

[DunaMarcela]

Why do bonds etfs have different returns in different years? Aren’t bonds supposed to have a fixed income?

[UsernameOG]

which bond etf should my mom get in her IRA, she's 55 years old.

[kitkarson]

Do you have any insights on SPGP ETF? I like growth. SPGP is growth at reasonable price. I would appreciate if you could share your input.

[analyticsx]

What’s your opinion on international bond funds like JPIB?

[naturalhealing]

So why buy and ETA instead of the actual T Bill?

[hectorgarcia]

What do you think about : AMUNDI US TREASURY BOND 10+Y UCITS ETF DIST