EDV Fund Description

The Vanguard Extended Duration Treasury ETF tracks a market weighted index of high-duration zero-coupon US Treasury securities.

EDV ETF.com Insight

[As of 3/31/14] EDV is not a portfolio for the faint of heart when it comes to interest-rate risk. The fund holds a portfolio of 20-30 year Treasury STRIPS, which are securities thatby design, EDV has much higher interest-rate risk than our benchmark promise a single payment upon maturity in the next 20-30 years without any interim coupon payments. As a result, even though EDV has only a slightly longer weighted average maturity than our benchmark, it has much higher interest-rate risk, and more volatile returns. Note that PIMCO's ZROZ—also focused on long term zero coupons—has even higher duration. EDV charges the lowest expense ratio in its segment (12 bps) but it isn’t easy to trade. The fund itself makes quarterly distributions (despite the lack of coupons in its basket) from proceeds of bonds sold at rebalance.

1 Year

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

EDV (Mkt)
-0.26% 6.49% 19.94% 8.68% 15.23% 9.26% --

EDV (NAV)

-0.30% 6.65% 20.90% 8.43% 15.20% 9.47% --

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

-0.17% 6.92% 20.58% 9.20% 15.46% 9.83% 9.7%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

EDV Top 10 Countries

EDV Top 10 Sectors

EDV Top 10 Holdings

EDV Summary Data

Vanguard

A company that produces and manages ETFs.

12/06/07

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.12%

The net total annual fee a fund holder pays to the issuer.

$222.98 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$5.29 M

Average dollar value of shares traded over 60 calendar days.

0.19%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

EDV Portfolio Data

27.2

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

25.3 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

3.47%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

--

The date on which a security's price excludes an upcoming dividend.

68

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

EDV Index Data

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

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

Barclays US Aggregate
Long Treasury Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to EDV

TLH, TLO, TLT, ZROZ

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

EDV ETF.com Efficiency Insight

[As of 3/31/14] EDV is a reasonably efficient fund: Its 12 bp expense ratio is the lowest in its segment, and its $180M in AUM adds to the fund's stability. Its demerits come from capital gains payouts distributed to investors in prior years and its weak portfolio transparency.

Total Return

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

EDV (Mkt)
-0.26% 6.49% 19.94% 8.68% 15.23% 9.26% --

EDV (NAV)
-0.30% 6.65% 20.90% 8.43% 15.20% 9.47% --

Barclays U.S. Treasury STRIPS 20-30 Year Equal Par Bond Index
-0.17% 6.92% 20.58% 9.20% 15.46% 9.83% 9.7%

Barclays US Aggregate Long Treasury Index
-0.22% 4.42% 12.14% 6.26% 8.80% 7.36% 7.2%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

EDV Portfolio Management

0.12%

The net total annual fee a fund holder pays to the issuer.

-0.09%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

0.81%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-1.11%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

EDV Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

EDV Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

100% / 0%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Monthly

The frequency of an issuer's disclosure of all fund holdings.

N/A

The multiple of the underlying index which the fund aims to deliver. For funds that reset, the leverage factor holds true only for the reset period, often just 1 day.

N/A

The time period at which the fund “trues up” its leverage factor. For funds that reset, the reset period–often just 1 day–is the length of time over which the fund delivers its leverage factor.

EDV ETF.com Tradability Insight

[As of 3/31/14] EDV isn’t easy to trade at retail levels, and institutional investors also face challenges. On most days, over $1M of EDV changes hands—a reasonable amount—but its spreads are wider than some competing funds. Use limit orders to control trading costs here. Institutional investors may want to shop around, creation/redemption can impact underlying prices as the STRIPS market is not particularly liquid.

Average Spread

Premium/Discount

Volume

EDV ETF.com/ Block LiquidityAs of 08/20/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of EDV. EDV is rated a 5 out of 5.

EDV Tradability

50,052

The average number of shares traded during a 60 day period.

$5.29 M

Average dollar value of shares traded over 60 calendar days.

40,766

Median number of shares traded over the past 45 trading days.

$4.27 M

Median dollar value of shares traded over the past 45 trading days.

0.19%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

$0.19

The difference between the highest and lowest posted prices for an ETF, averaged over the past 60 days, in dollars.

--

The middle value in the ranked set of all premium/discount values over a 12-month period.

-- / --

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

50,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

0.82

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

--

The total number of net outstanding options contracts for an ETF.

--

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

EDV ETF.com Fit Insight

[As of 3/31/14] EDV holds, by design, an extremely high-duration portfolio. It only holds zero-coupon bonds with maturities in the next 20-30 years. Its average maturity is comparable to our benchmark, but the real difference is in its massively high effective duration because zero-coupon bonds carry significantly more duration risk than its coupon-bearing counterparts. High interest-rate sensitivity make EDV’s returns more volatile than funds like TLO.

EDV Sector/Industry Breakdown

EDV Segment Benchmark
100.00% 100.00%
0.00% 0.00%

EDV Top 5 Countries

100.00% 100.00%

EDV Top 5 Currencies

100.00% 100.00%
100.00% 100.00%

EDV Performance Statistics

0.98

The degree to which the fund and its segment benchmark move up and down in unison.

1.65

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.60

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.65

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.48%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

EDV Holdings Statistics

EDV Segment Benchmark
24.77 25.30

The weighted average of remaining time until maturity for all securities in the portfolio.

16.75 27.15

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

-0.03 -0.15

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

17.71 28.91

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

3.19% 3.47%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

0.00 0.00

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Medium Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

42 68

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

AAA AAA

Market–value–weighted average credit quality of the portfolio.

EDV Maturity Distribution

0.00% 0.00%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

0.00% 0.00%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

0.00% 0.00%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

0.00% 0.00%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

0.00% 0.00%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

100.00% 100.00%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

EDV Credit Breakdown

100.00% 100.00%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to BB rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to B rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).