1Semana·

Money market Etf

Hello everyone,

I'm about to receive a gift, and I'd like to park the money for the time being because I might want to use it as equity for property in the next 3-4 years. If that doesn't happen, ownership will no longer be an issue after that. I have considered parking the money in a euro money market ETF without USD currency risk. I now had the $ERNX (-0,04 %)

on the screen.

Do you have any experience with money market ETFs of this size? Yield vs. overnight money, stability, liquidity in times of stress?

I look forward to your opinions and recommendations!

11 Comentarios

Epi@Epi

1Semana

Your ETF of choice is a corporate bond ETF, I hope you realize that. A safer bet is $XEON or a very short-dated EUR government bond ETF. In the next 4 years, however, all of these components are likely to be tested, given the current tense situation on the financial markets.

If you know your target time exactly, you can also try iBonds ETF. They should be pretty safe.

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JoeyTribbianiJr@JoeyTribbianiJr

1Semana

@Epi Yes, I was aware of that, but I'm also open to other suggestions. I'll have a look at your suggestion. Thank you!

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financial_wizard_1713@financial_wizard_1713

1Semana

I would prefer to park the money in P2P, for example with Bondora (the best-known provider). You get over 4% every day.

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Epi@Epi

1Semana

@financial_wizard_1713 Well, one good recession and P2P will blow up in your face.

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Tino@parlania

1Semana

@financial_wizard_1713 4% per day would be something 🤣
Anyhow, interest rates have been much higher in the past. Given the risk, it's better not to entrust everything to a private foreign company

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Kai Nehr@Webda

1Semana

$XEON - This is also available as a distributing variant if required

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Dividendenopi👴@Dividendenopi

1Semana

I'm going to make myself unpopular 😉. Over this short period of time and in the digital age for your spread and any plans, play it safe and bluntly protect against inflation. Call money accounts as a new customer, for a limited time, are still available at around 3%. It takes a bit of work, but it's limited. Even afterwards, you can still earn well over 2% with special offers. If necessary, build up a fixed-term deposit ladder with terms of 1, 2 and 3 years. Then you can always make new and flexible decisions after expiry. And until then, you can take your time to develop an investment strategy, e.g. via a model portfolio, if ownership is not an option.

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JoeyTribbianiJr@JoeyTribbianiJr

1Semana

@Dividendenopi No, it's all good, I thought about it myself, whether I should just do an overnight money account. That's why I asked here about experiences with money market ETFs, because that's basically the only alternative I could think of. What I would actually do with it afterwards would be easier for me to answer 😁

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Dividendenopi👴@Dividendenopi

1Semana

Sounds like a plan 😉. With money market ETFs, you have the advantage with larger sums that they are special assets and you don't have to constantly deal with deposit protection

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JoeyTribbianiJr@JoeyTribbianiJr

1Semana

@Dividendenopi Yes, unfortunately I don't have to worry about sums like the deposit guarantee. It's more of a large sum for me 😄

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Dividendenopi👴@Dividendenopi

1Semana

@JoeyTribbianiJr As we all know, big is relative. You've given it some thought, I'm sure you'll get lots of good ideas here and will find the right decision for you

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