4Mo·

Bond ETFs, the safe way to park money?

I am currently looking for an asset to build up and park a monthly sum via a savings plan for 2 to 3 years. Stability, security and a little return are important to me.

One option would have been the TradeRepublic cash account with its current 3% interest rate. However, I don't like the fact that I can't tell the difference between parked money and free capital.

During my search, I came across bond ETFs with distributions that could provide me with exactly that with my current knowledge.

My option: $IBTU (+0,02 %)

The iShares USD Treasury Bond 0-1yr UCITS ETF invests in short-term US government bonds with remaining maturities of 0 to 1 year. It offers a high level of security, as the bonds are guaranteed by the US government, and is ideal as an alternative to call money accounts or for capital preservation. The main risks are exchange rate fluctuations (USD/EUR), low returns in periods of low interest rates and the effects of inflation. Perfect for security-conscious investors!

Have I overlooked something in my considerations? Do you have a better alternative?

https://www.ishares.com/de/privatanleger/de/produkte/307241/ishares-treasury-bond-0-1yr-ucits-etf

#anleihen
#etfs
#kapital
#sparen

www.ishares.comVielfältige Anlagelösungen mit iShares ETFs | iShares DE - BlackRock

40 Commentaires

Chandra@Chandra

4Mo

Maybe take a look at $XEON?

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Voir toutes les 11 autres réponses

Uwe@SchlaubiSchlumpf

4Mo

I haven't really looked into exchange rate risks, as they haven't really played a role for me so far. But I think the exchange rate risk works against the desire for a safe solution here, as exchange rates can make a lot of nonsense in the short term. Personally, I would go for a slightly lower-yielding option in my own currency.
But as I said, I haven't looked into it that much.

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DerDanner@Therapeut

4Mo

@SchlaubiSchlumpf i.e. if the euro outperforms the dollar, does the yield in the chart fall? Or how does the exchange rate develop instead?
Would you then bet on euro bonds?

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DerDanner@Therapeut

4Mo

@SchlaubiSchlumpf had linked the wrong ETF look again $IBTU

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Uwe@SchlaubiSchlumpf

4Mo

@Therapeut That's exactly what I mean. A euro short bond ETF should be more stable. You can think of it as exchanging euros for dollars and then investing the money with American interest rates. Last year that was advantageous. In the long term in the past, it wasn't dramatic either. But it could be disadvantageous in the event of a dollar devaluation as part of a crisis caused by new trade conflicts in the USA, for example. My personal assessment. But I only have layman's knowledge. So you should definitely do some independent research.
Of course, there is potential for returns.

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DerDanner@Therapeut

4Mo

@SchlaubiSchlumpf Thank you very much, I'll take a look👍

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4Mo

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DerDanner@Therapeut

4Mo

@PowerWordChill i.e. would my S&P500 ETF on a USD basis also be subject to currency risk?

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4Mo

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DerDanner@Therapeut

4Mo

@PowerWordChill Thank you for your detailed answer🤲

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Uwe@SchlaubiSchlumpf

4Mo

@PowerWordChill With currency hedges, I would have a fluctuation anyway, whether I have exchange rate risk or not. The expected value for me is 0, since it can go either way, this is not a big additional risk with the volatility of an etf. But the hedge costs money. That much. That, as far as I know, it destroys the extra interest I would get in the USA

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Epi@Epi

4Mo

The ETF is essentially a bet on a rising USD. Quite speculative and volatile, especially with Mr. T. I have one of these running in my GTAA model right now.

Your idea of a safe investment is more in line with a hedged US short: $PR1H

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DerDanner@Therapeut

4Mo

@Epi too bad and I thought I had found the thing😂
Is there no bond ETF that distributes shares and is relatively stable?

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DerDanner@Therapeut

4Mo

@Epi wouldn't I have the same currency risk with yours?

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Epi@Epi

4Mo

@Therapeut $XEOD 😁

At $PR1H you only have the risk of your own currency: EUR. 😏

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Dominik@Dominik_76

4Mo

@Therapeut Have a look at Justetf or Extraetf or Finanzfluss in the etf search. Choose bonds, money market, bonds, government bonds, highest or high credit rating, euro or euro-hedge, short term and distributing. I take accumulating ones, because I already pay enough to the tax office and the saver's allowance is exhausted. if you are looking for a safety anchor, you should not take a foreign currency, which then becomes speculative. It's okay with shares, that's the return component and you accept that.

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Iwas M.@SSIT

4Mo

$EUHA would be my choice. But bear in mind the spread costs. So over a few months, it's not even that good, but over a savings phase of years, the additional return compared to the usual money market ETFs should be clearly noticeable.
$PJSR the somewhat safer, but also lower-yielding choice. The same applies here with the spreads and the term.

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DerDanner@Therapeut

4Mo

@SSIT both have relatively high costs of 0.5 and 0.35 TER

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Iwas M.@SSIT

4Mo

@Therapeut On the ETF comparison sites and also with my broker (Scalable), the latter is quoted at only 0.19%.
The High Yield is indeed expensive, that's true. But as long as the return is right in the end, I would swallow this toad.

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Dividendenopi👴@Dividendenopi

4Mo

In the short to medium term, unfavorable exchange rates have a greater impact on your investment. If you save now and then leave it for a longer period of time, at least the past has shown that exchange rates are priced in. For the moment, the dollar is expensive again, I'm happy, my USD fixed-term deposit expires at the end of next week, so there's a currency gain on top of 5% interest. If that hadn't been the case, I would have had to leave the money and then convert it when it suits. You can also buy ETFs hedged, but that costs money and is at the expense of the return. To build up a hidden reserve, forgo the return and reduce the risk and take euros. My humble opinion

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DerDanner@Therapeut

4Mo

@Dividendenopi thanks for your message, would you have a euro-based ETF for me?

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Dividendenopi👴@Dividendenopi

4Mo

@Therapeut sorry, I can't help you with that. I invest directly in government bonds or corporate and equity bonds with absolute amounts, so no savings plans

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Schumi150@Schumi150

4Mo

If you want to park the money, distributions make little sense. With a standard all-world ETF, the return is technically much better

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DerDanner@Therapeut

4Mo

@Schumi150 the thought was that Allworld could suddenly make losses during the time I need the money

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Schumi150@Schumi150

4Mo

@Therapeut I think this is highly unlikely for 3-4 years. I once faced the same situation. I ended up withdrawing the money for a car (had to🙂). It worked out great. Of course, nobody has a crystal ball, but experience has shown that it makes sense to simply put the money into your standard savings plan (if you have one). By continuing to save and making favorable direct purchases, depending on the price, you keep the risk lower and get more out of the 7% p.a. My humble opinion Einschätzung✌🏻

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Dominik@Dominik_76

4Mo

I focus on short-dated bonds in the domestic currency, be it Euro Gov or German Gov Bonds or Corp Bonds or money market SWAP. I have oriented myself to Kommer and Walz. For European Gov Bonds I have the 0-6 month bond ETF from Amundi Govies 0-6 M Euro InGrd ETF DR C ISIN: $C3M

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DerDanner@Therapeut

4Mo

@Dominik_76 I'll take a look👍 depends on the prime rate, right?

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Dominik@Dominik_76

4Mo

@Therapeut The Amundi Euro Govies are slightly below the key interest rate and are government bonds from the euro zone with maturities of 0 to 6 months. Prof. Walz once mentioned them. Then I also have the relatively new ultra-short corporate bond ETF from Ishares: iShares € Ultrashort Bond ETF - The ticker is $ERNX, ISIN: IE000RHYOR04 The yield is a shot above the Govies. It contains around 500 corporate bonds with good credit ratings. I found it on the Kommer website. It is also available as a distributing variant. This is the ERNA. Then I have the $XEON and also a 0-1y Germany Gov Bond from Xtrackers $XG01. What I'm still thinking about is an Emerging Market Gov Bond Etf Euro-hedged with a short term. But there are only a few.

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Andreas M.@thor88

4Mo

I use $IBTS 1- 3 years bonds for the past two years in a 90 VUSA / 10 IBTS portfolio. It's pretty OK up to now.

Otherwise for EUR you can do XEON i got 3.10% for the current year, not bad for EUR.

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