Maybe take a look at $XEON?
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@Chandra How exactly does this work, are there phases in which the interest rate decreases or makes losses?
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@Therapeut This is basically the ECB's interest rate (€STR - Euro Short Term Rate). If the ECB's interest rate were 0%, the ETF would fall very slightly as it has a ter of 0.1%.
You can see this quite well on the long-term chart. In the zero interest rate phase of the last decade, it fell slightly and when the ECB raised interest rates in 2022, it went up again.
I don't think we'll get back to 0% any time soon. But in any case, it won't come as a surprise from one day to the next and you'll notice it because suddenly everyone is buying houses again and cheap loans are being thrown at you.
It will be difficult to find more than the ECB's interest rate, even with overnight money (i.e. at Trade Republic etc.), as the banks only park your money with the ECB and pass the interest on to you (minus a bit for themselves, presumably)
You can see this quite well on the long-term chart. In the zero interest rate phase of the last decade, it fell slightly and when the ECB raised interest rates in 2022, it went up again.
I don't think we'll get back to 0% any time soon. But in any case, it won't come as a surprise from one day to the next and you'll notice it because suddenly everyone is buying houses again and cheap loans are being thrown at you.
It will be difficult to find more than the ECB's interest rate, even with overnight money (i.e. at Trade Republic etc.), as the banks only park your money with the ECB and pass the interest on to you (minus a bit for themselves, presumably)
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•@Chandra Thank you for the detailed explanation 👍
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I also find this option extremely relaxed, solid and low-risk for short-term investments.
Sure, you can get a little more return here and there, but that's not usually the point of parking money. Comfort is much more important to me
Sure, you can get a little more return here and there, but that's not usually the point of parking money. Comfort is much more important to me
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@Therapeut The money market/bond/bond ETFs can all slip into the loss zone, so you should keep an eye on the prime rate and the KID. But I use the bond ETFs as a safety building block, if they still yield something then it's okay as an add on, but I don't feel like moving the cash back and forth between call money accounts every few months to get the most out of it.
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•@Dominik_76 i.e. where have you parked your money now?
What do you think of my proposed ETF? I think it's quite nice that it pays out dividends
What do you think of my proposed ETF? I think it's quite nice that it pays out dividends
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@Therapeut I have found another distributing low-risk bond/bond ETF iShares eb.rexx Government Germany 0-1 y UCITS ETF $EXVM
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•@Dominik_76 Thank you for your research
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•@Dominik_76 Your selected ETF makes 0.7% per year😅 then I could also stay with 3% Trade Republic or am I reading that wrong?
What do you think about that?
https://www.finanzfluss.de/informer/etf/ie00b4py7y77/
What do you think about that?
https://www.finanzfluss.de/informer/etf/ie00b4py7y77/
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@Therapeut If it pays out dividends, the price return is reduced by this value. The distribution must be included again in the calculation of the total return. According to Blackrock, $EXVM did not have a total return of 0.7% in 2024, but 3.4%. This year it will be lower if the ECB cuts further.
https://www.ishares.com/de/privatanleger/de/produkte/251779/ishares-ebrexx-government-germany-0-1yr-ucits-etf-de-fund#/
The high yield you selected is not a low-risk security component for the portfolio, it would not be suitable as an overnight money equivalent, rather as a yield driver, also has the currency risk due to USD. The default rate of the loans is higher and they are corp bonds, i.e. corporate bonds.
Prof. Walz's blog is quite good on the subject of bond etfs and which ones for what purpose:
Bond ETFs Part2 - Prof. Dr. Hartmut Walz https://search.app/tmwPe1JfDqqvv87f6
https://www.ishares.com/de/privatanleger/de/produkte/251779/ishares-ebrexx-government-germany-0-1yr-ucits-etf-de-fund#/
The high yield you selected is not a low-risk security component for the portfolio, it would not be suitable as an overnight money equivalent, rather as a yield driver, also has the currency risk due to USD. The default rate of the loans is higher and they are corp bonds, i.e. corporate bonds.
Prof. Walz's blog is quite good on the subject of bond etfs and which ones for what purpose:
Bond ETFs Part2 - Prof. Dr. Hartmut Walz https://search.app/tmwPe1JfDqqvv87f6
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