(EDV) Vanguard Extended Duration - Ratings and Ratios

The Vanguard Extended Duration Treasury Index Fund ETF Shares (EDV) is an exchange-traded fund that employs a sampling strategy to track the Bloomberg U.S. Treasury STRIPS 20-30 Year Equal Par Bond Index, comprising zero-coupon U.S. Treasury securities with maturities between 20 and 30 years, backed by the full faith and credit of the U.S. government.

This fund is designed for investors seeking long-duration exposure to U.S. Treasury securities, providing a relatively low-risk investment option with a high level of liquidity. As an ETF, EDV offers flexibility and diversification benefits, allowing investors to buy and sell shares on an exchange throughout the trading day.

Given the current market conditions and the funds characteristics, we can analyze the technical data to forecast potential price movements. The current price of 64.41 is slightly above the 20-day Simple Moving Average (SMA) of 64.34, indicating a potential short-term uptrend. However, the 50-day SMA (66.34) and 200-day SMA (70.14) are significantly higher, suggesting a longer-term downtrend. The Average True Range (ATR) of 1.08 (1.68%) indicates moderate volatility.

Using the technical and fundamental data, we can forecast that if the long-term downtrend continues, EDV may test the 52-week low of 62.42. Conversely, if the short-term uptrend gains momentum, the fund may face resistance around the 52-week high of 80.79. Considering the AUM of 3484.03M USD, EDV has a substantial asset base, which can contribute to its liquidity and stability.

Based on the analysis, a potential trading strategy could involve monitoring the funds price action around the 64.34 SMA level, with a potential buy signal if it breaks above the 66.34 SMA, targeting the 70.14 SMA. Conversely, a sell signal could be triggered if the price falls below the 62.42 level, indicating a potential continuation of the downtrend.