1Yr·

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 (+0.01%) or also $CSH (+0.02%) 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

1Yr

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

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TotallyLost@TotallyLost

1Yr

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.

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Rügen W.@SSIT

1Yr

@TotallyLost Aren't they euro bonds?

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TotallyLost@TotallyLost

1Yr

@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.

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Echsenkönig A.@Bezehgombjuderstimme

1Yr

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.

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Susanne@Isus01

1Yr

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.

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Soprano@Soprano

1Yr

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?

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Rügen W.@SSIT

1Yr

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

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Soprano@Soprano

1Yr

@SSIT But why does it go up

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Rügen W.@SSIT

1Yr

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