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Written by 2:19 pm Blog, Current Investigations

Vanguard Extended Duration Trs Idx Instl (VEDTX) Securities Investigation 

Vanguard Extended Duration Trs Idx Instl (VEDTX) Securities Investigation, featured by top securities fraud attorneys, the White Law Group

Vanguard Extended Duration Trs Idx Instl (VEDTX) is down –39.10% YTD 

Have you suffered investment losses in Vanguard Extended Duration Trs Idx Instl (VEDTX) at the advice of your financial advisor? If so, the securities attorneys at the White Law Group may be able to help you. 

According to the Vanguard Group website, Vanguard Extended Duration Treasury Index Fund seeks to track the performance of an index of extended-duration zero-coupon U.S. Treasury securities. 

“The fund is primarily intended for institutional investors with extremely long-term liabilities—20 years or more. Prospective individual investors are urged to consult with their own advisors to determine if the fund is suitable for their overall investment programs and financial positions.” 

According to a report by the Wall Street Journal, this is the worst bond market since 1842. Why? Because when interest rates go up, bond prices go down.  To make matters worse, rates started at such low levels and the increase has been dramatic. The federal reserve increased the interest rate again in September to 3% and 3.25%. (In May it was 0.75% to 1.00%). Rates were raised by 0.5% on May 4, 2022 and more increases are anticipated in the months ahead. 

More problematic are long term duration bond funds because the longer the maturity of the bond the greater the decrease. Many bond investors are unaware of this risk and assume that their bond investments are their “safe” investments. 

Unfortunately, since VEDTX invests in long-duration bonds, it is exposed to credit risk associated with an increase in interest rates. According to Morningstar, Vanguard Extended Duration Trs Idx Instl (VEDTX) is currently down –39.10% YTD. 

Recovery of Investment Losses through FINRA Arbitration 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended bond funds to investors.  

Before recommending a bond investment, a financial advisor, at minimum, is required to disclose: (1) the bond’s current price, (2) the commissions or markups that must be paid to acquire the bond, (3) an explanation of the call provisions for the bond (if applicable), (4) the current yield, the yield to maturity, and the yield to call the bond, (5) the amount and timing of the bond payments, and, most importantly, (6) the risk of default or devaluation of that particular bond’s value. To learn more see 

If you have suffered investment losses in Vanguard Extended Duration Trs Idx Instl (VEDTX), the securities attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

For a free consultation with one of our securities fraud attorneys please call The White Law Group at 888-637-5510. 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. 

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com. To learn more about VEDTX please see: Vanguard Extended Duration Treasury Index Investment Losses 

 

  

  

  

 

Tags: , , , , , Last modified: November 17, 2022