Extended Duration Treasury Index Fund Institutional Plus Shares (VEDIX)

Another share class of this strategy has an earlier inception date, and therefore has more performance and price history.

Also available in 

more share classes

, including an 

ETF

.

Indexed to Barclays US Trsy Strips 20-30Yr Eq

Summary of this fund

Vanguard Extended Duration Treasury Index Fund seeks to track the performance of an index of extended-duration zero-coupon U.S. Treasury securities.

The fund is primarily intended for institutional investors with extremely long-term liabilities—20 years or more. Prospective individual investors are urged to consult with their own advisors to determine if the fund is suitable for their overall investment programs and financial positions.

Investment approach

  • Seeks to track the performance of the Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index.
  • Passively managed using index sampling.
  • Diversified exposure to the long-term Treasury STRIPS market.
  • Provides high current income with high credit quality.

About the benchmark

  • The Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index measures the investment return of Treasury STRIPS with maturities ranging from 20 to 30 years. A Treasury STRIP represents a single coupon or principal payment on a U.S. Treasury security that has been “stripped” into separately tradable components. The index includes zero-coupon U.S. Treasury securities with maturities ranging from 20 to 30 years.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/24/2014

NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$77.06
$0.23 positive change   0.30%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

3.56% A

BASED ON HOLDINGS' YIELD TO MATURITY FOR PRIOR 30 DAYS;DISTRIBUTION MAY DIFFER

Distribution yield

The fund's current monthly income dividend per share, annualized (by dividing by the number of days in the month and multiplying by 365) as a percentage of the fund's average NAV during the month.

 as of —

KEY FUND FACTS

Key fund facts

Expense ratio
0.08% as of 12/23/2013
Lipper peer average
expense ratio
0.46% as of 12/31/2013
Designation
Long Government
Inception on
08/28/2013
Earliest share class
inception on
11/28/2007
Total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds that share the same investment strategy, management and holdings, but does not include any collective trusts sharing the same investment mandate.

$947.8 million as of 03/31/2014
Net assets for
VEDIX
 
$288.6 million as of 03/31/2014
Holdings 
66 as of 03/31/2014
Management style
Index
Benchmark
Barclays US Trsy Strips 20-30Yr Eq
Turnover rate 
 31.00%(Fiscal year-end  08/31/2013)

Fees and minimums

Fees and minimums

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

.50%

The fund assesses a 0.50% fee ($5.00 per $1,000) on purchases. The fee is paid directly to the fund and therefore is not considered a load.

Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

None
Minimum investment:
$100,000,000

ETF Knowledge Center™   

STYLEBOX

Stylebox

Bond
Diversified index portfolio of Treasury STRIPS.



Expected range
Central tendency

About our styleboxes  

Objective

Vanguard Extended Duration Treasury Index Fund seeks to track the performance of an index of extended-duration zero-coupon U.S. Treasury securities.

The fund is primarily intended for institutional investors with extremely long-term liabilities—20 years or more. Prospective individual investors are urged to consult with their own advisors to determine if the fund is suitable for their overall investment programs and financial positions.

Investment approach

  • Seeks to track the performance of the Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index.
  • Passively managed using index sampling.
  • Diversified exposure to the long-term Treasury STRIPS market.
  • Provides high current income with high credit quality.

About the benchmark

  • The Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index measures the investment return of Treasury STRIPS with maturities ranging from 20 to 30 years. A Treasury STRIP represents a single coupon or principal payment on a U.S. Treasury security that has been “stripped” into separately tradable components. The index includes zero-coupon U.S. Treasury securities with maturities ranging from 20 to 30 years.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
15%
10
5
0%
 
 
  YTD 1 year 5 year 10 year Since inception

08/28/2013

NAV *
12.98% 7.88%
Benchmark

Barclays U.S. Treasury Strips 20-30 Year Equal Par Bond Index

**
12.22%

Note: Fee adjusted for mutual funds where applicable.

Note: This fund does not have a long enough history to provide annual performance data.

** Includes zero-coupon U.S. Treasury securities with maturities ranging from 20 to 30 years.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Distribution by credit quality(% of fund) as of 03/31/2014

(% of fund) as of 03/31/2014
  Credit rating  VEDIX
U.S. Government 100.0%
Aaa 0.0%
Aa 0.0%
A 0.0%
Baa 0.0%
< Baa 0.0%
0%
100%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “NR” is used to classify securities for which a rating is not available. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under “U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Fundamentals

Bondas of 03/31/2014 VEDIX Benchmark

Barclays U.S. Treasury Strips 20-30 Year Equal Par Bond Index

Number of bonds 66 66
Yield to maturity 3.71% 3.71%
Short-term reserves 0.00% N/A
Average duration 24.9 (years) 24.9 (years)
Average maturity 25.4 (years) 25.3 (years)
Average coupon 0.00% 0.00%

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VEDIX Benchmark

Barclays U.S. Treasury Strips 20-30 Year Equal Par Bond Index

R-squared N/A 0.99
Beta N/A 1.01
Alpha – 0.02 N/A
Standard deviation 23.62% 23.20%
Sharpe ratio 0.60 0.61

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within an extremely wide range, much more than the fluctuations of the overall bond market.

  • Interest rate risk: The chance that bond prices overall will decline because of rising interest rates. Interest rate risk is expected to be extremely high for the fund because it invests mainly in zero-coupon long-term bonds, which have prices that are even more sensitive to interest rate changes than are coupon-bearing bonds of similar maturity.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.



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