ETF to Dump No. 4: Vanguard Extended Duration Treasury (EDV)
In bond terminology, "duration" measures a portfolio's sensitivity to interest rates. Vanguard Extended Duration Treasury (EDV) has an extra-large "extended" duration of 27.8, which means it can lose about 27.8% for every 1% in long-term interest rates. This makes EDV the highest-risk Treasury ETF that does not use leverage.
Of course, this also means EDV stands to gain if long-term rates should go down. But with Ben Bernanke keeping the monetary fire hose on full blast, there isn't a lot of room for rates to drop. Hence I think the risk of EDV far outweighs the upside potential.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV