Wizard2 (@investment_wizard

5Mon·

Big question to the knowledgeable people from a newbie: How does an ETF such as $CSH2 (+0%) (LU1190417599, Lyxor overnight return) works? Why is the value so stable? How does it work? Am I willing to profit or lose significant amounts if I'm invested?

Thanks in advance for your answers!

3 Comments

Patrick@PS-Munich

3Mon

there is quite a bit of literature available online, this one in German: https://www.test.de/Mit-Overnight-ETF-am-Geldmarkt-anlegen-Tagesgeld-fuer-Fortgeschrittene-6070550-0/. In essence it follows the EURIBOR, you will need to keep an eye on this interbank interest rate. ATM it gives you a decent return and does not have the downside of "Tagesgeld" where you typically only get time bound offers and securities are limited to 100.000Euro. Alternative to Lyxor: Xtrackers EUR Overnight Rate Swap

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