EDV (EDV)

The Vanguard Extended Duration Treasury ETF (EDV) offers a 5.38% SEC yield with a low expense ratio, but it faces significant duration risk. A small increase in long-term Treasury yields could erase a year's income, making it a tactical play dependent on substantial drops in long-term yields rather than a stable income investment. A suggested entry price for the ETF is near $56.

The EDV ETF, or Vanguard Extended Duration Treasury ETF, is a passively managed fund investing in 20- to 30-year Treasury STRIPS, exhibiting a high interest rate risk due to its zero-coupon bond holdings. It has assets under management (AUM) of $3.43 billion and offers a dividend yield of 5.25%, with its last dividend amounting to $0.87. The fund's performance has seen some decline in recent periods.