ETFs provide a cost-effective way to invest in US government bonds amid Federal Reserve rate cuts. The yield curve spread between 2-year and 10-year Treasury bonds has increased, offering opportunities for higher yields. Europe-based ETFs saw £1.1 billion in net inflows in Q3 2025 after four quarters of outflows.

Investors seeking US Treasury-focused ETFs can consider those with Gold and Silver Morningstar Medalist Ratings. Top-rated ETFs include SPDR, Vanguard, Invesco, and others. These passively managed funds have outperformed their benchmarks and peers, with gains ranging from 4.09% to 5.01% in the past year.

SPDR Bloomberg US Treasury Bond UCITS ETF, with a Gold rating, gained 4.15% in the past year, closely matching its category average. Vanguard USD Treasury Bond UCITS ETF, also Gold-rated, rose 4.09% over the same period. Invesco US Treasury Bond 3-7 Year UCITS ETF, rated Gold, saw a 5.01% increase, outperforming its benchmark by 0.89 percentage points.

Read more at Morningstar: The Best USD Government Bond ETFs