Vanguard has a tiny fund that returned 55% in 2008.

The name of the fund is Extended Duration Treasury.

It’s a $52 million fund, which is Vanguard’s second-smallest (next to Managed Payout Growth Focus).

Now be honest. Did you know about this 55% winner before I just told you? And if not for this, do you honestly believe you’d ever find a Vanguard mutual fund like this on your own?

Now, in a year when every index and asset class took a beating, how did any fund rise by 55%?

Here’s how: The fund is designed with just one purpose: To give investors a way to bet that interest rates will fall. And I chose the word “bet” for a reason — you are taking a gamble with this fund because it’s very volatile, and you can lose your shirt if you bet wrong.

As interest rates shrunk to near zero in 2008, this fund rewarded its few investors with profits of 55%. But most Vanguard investors missed out — because they didn’t know this fund existed.

But it doesn’t look like 2009 will bring anywhere close to the 55% profit this fund saw last year…unless rates do the impossible and drop below zero.

In fact, with inflation likely — due to the worldwide money creation needed to stave off the financial crisis and recession — inflation is baked into the cake.

And investors who chase this fund’s performance are going to get hammered. In fact, the fund lost more than 21% in January alone.

Do NOT buy this fund today.

Millions of Vanguard investors will be left in the dust even after the economy recovers. But you can set yourself up right now to be the first to profit…and then sprint ahead of the typical Vanguard investor by an amazing 94% margin. Kick-start your recovery plan today by accepting a six-month risk-free trial to Dan Wiener’s Independent Adviser for Vanguard Investors. Get more details here.