1Mon·

Nest egg

After some wrangling, I've taken part of my nest egg away from call money and invested it directly in a bond ETF.

How do you handle this? $XEON (+0.02%) or $XEOD (-0%) or also $CSH (+0.01%) you often read here. Real bond ETFs, on the other hand, almost never.

28.05

Other Euro Short Maturity ETF

Bought x19 at €104.57

€1,986.83

12 Comments

Ph1l1pp@Ph1l1pp

1Mon

I think it only makes a minimal difference to the sum, I would have left it in call money

•

TotallyLost@TotallyLost

1Mon

Why not money market funds? Or if so, euro bonds?
That way you have a currency risk that should not be underestimated.
I use $CSH and the TR current account.

•

Iwas M.@SSIT

1Mon

@TotallyLost Aren't they euro bonds?

••

TotallyLost@TotallyLost

1Mon

@SSIT so I had a look in there and there is something like this...
Government of United Kingdom 4.375% 07-MAR-2028
Total 22% UK.
It may well be that they issue foreign currency bonds...
But if I were you I'd look again to see what exactly is in there, I've only skimmed through it now.

•

Echsenkönig Atokarn@Bezehgombjuderstimme

1Mon

So you should park your nest egg in non-volatile havens per se. I just leave it in the account. If I invest it, it's no longer a nest egg.

•

Susanne@Isus01010

1Mon

I started with a 60/40 portfolio. At the time, the bond part suffered considerable losses when inflation and interest rates rose. I still have a share in the portfolio, but it has been significantly reduced. I would never put a nest egg in there.

•

Soprano@Soprano

1Mon

But if I understand correctly, you are shorting government bonds. There's no other way to explain why the fund is rising. Are you even aware of what you are investing in?

••

Iwas M.@SSIT

1Mon

@Soprano Nothing is being shorted? Short mauturity are short-dated bonds.

••

Soprano@Soprano

1Mon

@SSIT But why does it go up

••

Iwas M.@SSIT

1Mon

@Soprano Unfortunately, I don't know exactly what you mean 🙂 Bonds are also subject to daily volatility due to stock market trading.