EDV
EDV is the Vanguard Extended Duration ETF, which follows the Barclays Treasury STRIPS 20-30 year equal par bond index. I like this EDV.
Its 52-week prices range from $89 to $168. Its closing price yesterday was $99. Its volatility is much higher than TLT ($89 to $123 for the same 52-weeks).
The current interest rate for 30-year Treasury bond is 4.25%. We had seen the price increased over 62% last year when the interest rate dropped to 2.25% last year. Suppose the long-bond rate will increase to 6.25%. EDV price will drop to (1.0425/1.0625)^25 or 62% of its current price level. It is expected the price range for the coming years will be around $60 to $168. They are within my tolerance levels.
I will try to trade this EDV for one year to see if its trading volume can meet my demands.
Its 52-week prices range from $89 to $168. Its closing price yesterday was $99. Its volatility is much higher than TLT ($89 to $123 for the same 52-weeks).
The current interest rate for 30-year Treasury bond is 4.25%. We had seen the price increased over 62% last year when the interest rate dropped to 2.25% last year. Suppose the long-bond rate will increase to 6.25%. EDV price will drop to (1.0425/1.0625)^25 or 62% of its current price level. It is expected the price range for the coming years will be around $60 to $168. They are within my tolerance levels.
I will try to trade this EDV for one year to see if its trading volume can meet my demands.
posted by Unknown at 6:18 AM
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