I have a boring question, I hold most of my investments into an overnight GBP rate ETF at the moment.
The ETF is LU0321464652 ticker XSTR(Xtrackers II GBP Overnight Rate Swap UCITS ETF)
I read the KIID and it seems the swap is held with Societe Generale…am I risking something greater than the 4-4.5% return of this swap ? Asking this after banks in US and Credit Suisse have had their problems.
Thanks!
Returning to your question about where to park cash.
What do you think of XSTR as a place to hold cash? It appears to gain value quite steadily. The spread is about 0.05%, so about 5 days of growth. Up 0.98% over past 3 months, so giving close to 4%.
What are the pros and cons of alternatives? How about ERNS which is also steadily moving up, 1.13% over 3 months.
Are there other short term ETF bond funds that effectively give low risk growth, similar to money market funds?