Noob (@Noobster) on getquin

3Mon·

Money market ETF - USD vs EUR

Hi,

I currently have about 50% of my assets in call money and time deposits. Yes, not smart, but I can sleep well with it. That's not the point.

As it's around €2 million, I've spread it across various call money and fixed-term deposit accounts using Raisin. That's semi-comfortable.

I'm thinking about putting everything into a money market ETF, i.e. $XEON (-0.01%) .

Then I thought to myself: Why EUR? Most of my shares are held in USD and I'm not so convinced about Europe at the moment anyway. So I searched for USD money market ETFs and found the biggest one:$FEDF (-0.79%)

you can find almost nothing about it in the forum here. The returns in recent years have been much better.

Wouldn't you go 50/50 or doesn't that make sense?

4 Comments

SGP@Koenigmidas

3Mon

Currently also have 50% in the xeon

Regarding the dollar, take a look at wkn:a0dpjg

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Rmann@Epi

3Mon

You would be betting on a rising dollar. The currency fluctuations would dwarf any interest rate accumulation.
And the USD can also fall by 30-40%.

Perhaps a currency-hedged US money market ETF is an alternative?
$PR1H

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ZeroIncomeStrategy@ZeroIncomeStrategy

3Mon

For me, it depends on what the purpose of this cash reserve is.
Should it perhaps one day be invested in European companies or real estate, or passed on to European descendants? I would keep it in euros instead of taking currency risk in the meantime.
Is it likely to be invested in USD-listed shares in the future, or somewhere else outside Europe? If so, it can also be held in USD now.

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