---
title: "If the Fed cuts rates, this ETF could explode higher"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293130047.md"
description: "The Vanguard Extended Duration Treasury Index Fund (EDV) offers a high-duration bet on falling long-term yields without leverage. With a duration of ~24 years, EDV is highly sensitive to interest rate changes; a Fed rate cut could significantly boost its price, while rising rates cause losses. Despite recent declines, it serves as a tactical hedge for investors expecting disinflation or recession, though it carries high volatility and is unsuitable for core bond holdings."
datetime: "2026-07-19T16:57:47.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293130047.md)
  - [en](https://longbridge.com/en/news/293130047.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293130047.md)
generator: "portal-rs"
---

# If the Fed cuts rates, this ETF could explode higher

Quick ReadEDV's 24-year duration amplifies every rate move, delivering roughly 24% price gains per 100 basis point yield drop, with equivalent losses applying if yields rise instead.Goldman Sachs projects the Fed funds rate ending 2026 at 3 to 3.25%, though sticky inflation may prevent long yields from falling in lockstep with short rates.Investors...

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**