Extended Duration Treasury Index Fund Institutional Shares (VEDTX)

 
 

OPTIONS as of
12/23/2013

Options Expense ratio Minimum
Inst 0.10% $5,000,000
Inst Plus 0.08% $100,000,000
ETF 0.12% Note

Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value.

About our options  


 

Fees

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

KEY FACTS

Designation: Long Government
VEDTX
 inception on 11/28/2007
$947.8 million total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 03/31/2014
$457.6 million net assets for
VEDTX
 as of 03/31/2014
66 holdings as of 03/31/2014
Indexed to the Barclays US Trsy Strips 20-30Yr Eq
Turnover rate (Fiscal year-end  08/31/2013) 31.00%

STYLEBOX

Bond
Diversified index portfolio of Treasury STRIPS.



Expected range
Central tendency

About our styleboxes  

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.

Total returns

View as:

as of 03/31/2014

15%
10
5
0
-5
-10%
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

11/28/2007

NAV 
– 6.83% 13.95% 4.55% 6.99%
Benchmark

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

*
– 5.99% 14.20% 4.97%

Note: Fee adjusted for mutual funds where applicable.

* 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

  Credit rating  VEDTX
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 VEDTX 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

  VEDTX 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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