2. Vanguard Extended Duration Treasury ETF (EDV | C-46)
Total return: +19.94 percent; Effective duration: 27.13 years
EDV holds STRIPS, which are zero-coupon Treasury bonds created by stripping coupon payments from principals with maturities between 20-30 years.
Since STRIPS make no intermediate coupon distribution, they are bought at very deep discounts; hence, they’re very sensitive to changes in interest rates. It is a pure duration play on a different level entirely.