3 Best US Treasury Bond ETFs in Canada (June 2026)
The best us treasury bond etf canada are funds that balance sustainable distributions with diversification and reasonable fees. Look for broad holdings, transparent strategy (dividends, preferreds, or covered calls), and a yield that fits your risk tolerance.
U.S. Treasury bond ETFs are designed for Canadian investors seeking high-quality fixed income backed by the U.S. government. ETFs like XTLH.TO, XTLT.TO, and TULB.TO provide exposure to U.S. Treasury bonds across different durations, offering strong credit quality and portfolio stability.
These ETFs are considered among the safest fixed-income investments globally, as they are backed by the U.S. government. However, returns are influenced by interest rates and currency movements, especially for unhedged ETFs.
In this guide, we break down the best U.S. Treasury bond ETFs in Canada, comparing duration, currency exposure, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or defensive investment strategy.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top XTLH.TO iShares 20+ Year U.S. Treasury Bond Index ETF (CAD-Hedged) | — | $299M | 4.61% | -2.10% | +2.41% |
XTLT.TO iShares 20+ Year U.S. Treasury Bond Index ETF | — | $80M | 4.99% | +0.00% | +6.55% |
TULB.TO TD U.S. Long Term Treasury Bond ETF | — | $230M | 4.60% | +0.58% | +5.00% |
What Is an ETF?
A U.S. Treasury bond ETF in Canada is an exchange-traded fund that invests in U.S. government bonds, providing exposure to one of the safest fixed-income markets in the world. These ETFs generate income through interest payments and are often used for capital preservation and diversification.
For example, XTLH.TO (~0.20% MER) provides exposure to long-term U.S. Treasuries with CAD hedging, while XTLT.TO (~0.20%) offers unhedged exposure to long-duration U.S. government bonds. TULB.TO (~0.15% MER) focuses on shorter-duration U.S. Treasury bonds, reducing interest rate sensitivity. IEF (U.S.-listed) is a widely used benchmark for intermediate-term Treasuries.
U.S. Treasury ETFs are commonly used in RRSPs and TFSAs for stability and diversification. Investors should consider both interest rate risk and currency exposure when selecting between hedged and unhedged options.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares 20+ Year U.S. Treasury Bond Index ETF (CAD-Hedged)
$31.27
-2.10% YTD
Returns
YTD
-2.10%
1Y
+2.41%
3Y
-3.11%
5Y
—
iShares 20+ Year U.S. Treasury Bond Index ETF
$33.87
+0.00% YTD
Returns
YTD
+0.00%
1Y
+6.55%
3Y
+0.07%
5Y
—
TD U.S. Long Term Treasury Bond ETF
$109.88
+0.58% YTD
NA
Returns
YTD
+0.58%
1Y
+5.00%
3Y
+0.02%
5Y
-1.96%
Pros & Cons
Pros
- Exposure to high-quality government bonds backed by the U.S. Treasury
- Strong defensive asset during market downturns
- Provides diversification away from Canadian fixed income markets
- Options available for both hedged and unhedged currency exposure
Cons
- Lower yields compared to corporate or high-yield bond ETFs
- Sensitive to interest rate changes, especially long-duration funds
- Currency fluctuations can impact returns for unhedged ETFs
- Limited growth potential compared to equity investments"
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best dividend ETF in Canada?
It depends on whether you want broad Canadian dividend exposure, global dividends, or enhanced income strategies. Compare MER, diversification, and distribution sustainability rather than yield alone.
Are dividend ETFs good in a TFSA?
Yes. Holding dividend ETFs in a TFSA can eliminate tax on distributions and capital gains. If the ETF holds U.S. dividends, withholding tax may still apply at the fund level.
Do high-yield ETFs have more risk?
Often, yes. Higher yields can come from riskier holdings or strategies like covered calls, leverage, or lower-quality credit. Review holdings, payout sources, and long-term total return.