10Lun·

Big question to the knowledgeable people from a newbie: How does an ETF such as $CSH2 (-0,03 %) (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!

5 Comentarios

Patrick@PS-Munich

8Lun

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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Wizard2@investment_wizard_387

8Lun

@PS-Munich Thanks for this precious knowledge!

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Santiago F.@user5240ae9d52d743ee

7Lun

What i understand, is that this etfs buys super short time debt to maturity. They do not own any long term bond for eg, that would result in a loss of price with a ECB rate cut. And the type of debt they own is super reliable, low risk. So low risk plus super short term debt, results in a low buy stable returns

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Santiago F.@user5240ae9d52d743ee

2Lun

It is a synthetic etf, so it has a contract with a counterpart that will pay whatever the tracked index varies

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stock_virtuoso_1385@stock_virtuoso_1385

2Semana

Interest rate cut by .025% couple days ago. What will be the effect to this ETF? I am about to buy this ETF. Should I wait? If yes? Why?

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