Institutional investors can purchase shares of the fund directly from Vanguard, or can purchase the Vanguard Extended Duration Treasury ETF, which began trading on the American Stock Exchange under the ticker EDV.
The Vanguard Extended Duration Treasury Index Fund
seeks to match the performance of the Lehman Brothers
Treasury Strips 20-30 Year Equal Par Bond Index, and has
a duration generally ranging from 22 to 27 years, the
announcement said. The fund was specifically designed for
institutions and pension plan providers who are seeking
to balance their portfolio assets to pension liabilities.
The new fund is managed by Vanguard Fixed Income Group.