EDV: Monitoring Inflation And Term Premium
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Node Analytica Research354 FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe Vanguard Extended Duration Treasury Index Fund ETF offers efficient, low-cost exposure to long-duration US Treasury STRIPS, amplifying sensitivity to interest rate changes.EDV's 4.9% yield to maturity, 24.1-year average duration, and 0.05% expense ratio position it as a high-quality, cost-effective duration play.Maintaining a position in EDV is justified while inflation remains above target and term premiums are elevated, as the fund's price is highly sensitive to these macro drivers.EDV's performance hinges more on shifts in the term premium than on Fed rate cuts, making inflation persistence a key risk to monitor. Torsten Asmus/iStock via Getty Images Intro & Thesis The Vanguard Extended Duration Treasury Index Fund ETF (EDV) is an alternative offered by the investment fund market that provides easy access to long-term US government fixed income, which isThis article was written byNode Analytica Research354 FollowersFollowNode Analytica is a macro - onchain research firm whose founders have developed systematic investment strategies in the digital assets market in order to generate competitive and uncorrelated investment returns for institutional investors.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.