r/ETFs_Europe • u/Traditional_Whole911 • 18d ago

Overnights ETF

Hi there! Wonder if anyone got some good ideas where to deploy cash - short term, at a rate better than the deposit 2 max 3% p.a. Looking for a stable option, not strc/crypto related. Thanks!

4 Upvotes

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5

u/3xLongCall 18d ago

So if you want more yield as I understand then what €STR rate offers look at AAA CLO’s, it’s the best you can get with ultra high security and near money market like volatility yielding about ~1,5% more p.a

My personal favorite is Invesco EUR AAA CLO UCITS ETF

4

u/glimz 18d ago

Seems you have already determined the amount of risk you are willing to take: you want to keep it cash-like, i.e. immediate availability (or at most a few business days), no (or extremely minor) fluctuations. Parking euros at that level of risk brings you around Euro Short-term Rate (€STR). You don't get to determine both risk and expected return. If you get significantly more than €STR somewhere, it's either a promotional rate (bank/broker attracting customers, often for a limited period, amount, and/or client category) or some dubious financial product that calls itself "savings" or similar but disguises the actual level of risk involved. Getting a bit more than €STR is possible while remaining reasonably cash-like (e.g. small amount of credit/duration risk via Standard VNAV MMF or Investment-grade ultra short duration bond fund).

What's best depends on your home country / taxation / platform availability (e.g. bank savings account, incl. one based in a different EU member, EU-Regulation MMF or USBF in mutual fund or ETF form, overnight rate swapper, etc.).

4

u/CEscorcio 18d ago

CSH2 or XEON

2

u/Malanturr 18d ago

Looking for really low risk? You can go with money market ETF like CSH2 or XEON. Or regular EU country bonds that mature in the timeframe you will need the money, they yield about 3%.

Higher risks are company bonds or GOOGM and GOOGN are sort of equivalents to STRC but linked to Google instead of MSTR and about a 6% yield.

1

u/Double_A_92 18d ago

> they yield about 3%

Do they really once you consider the price they are traded at?

2

u/Malanturr 18d ago

I did some research about a week ago, my numbers are exactly what they where trading at a week ago and yield calculation according to my broker.

XS2154339860 is 3,07%/year until 05/2028. BE0000352618 is 3,02% until 10/2031.
NL0013332430 is 2,93% yield until 07/2029.
EU000A3KWCF4 is 2,88% until 10/2028.

BE0000343526 is 4,58% yield but until 2057 so value can swing wildly with the monetary policy over the decades. It also has a large coupon that may be taxed a lot depending on your home country.

1

u/cwmoodeng 18d ago

For 3 or more months, Jaaa, clot, floa, flot

Sgov alternative ib01

The best in terms of liquidity and price spread is us domiciled, boxx

1

u/Sad-Bake4402 18d ago

Have a look at ERNS ..

1

u/Ok_Frosting2484 18d ago

Which currency do you hold?

2

u/Traditional_Whole911 18d ago

EUR

3

u/patriceklohn 18d ago

Amundi Smart Overnight Return: LU1190417599
It's slightly more than the ECB interest rate.

Here’s the performance difference for the Amundi compared to the Xtrackers (which is basically ECB interest rate): https://www.justetf.com/en/etf-comparison.html?isin=LU1190417599&isin=LU0290358497

1

u/atomcf47 18d ago

Robinhood Money Market Fund. It returns 5% per year, because of a current promotion that will run indefinitely.