I've often written about slow, rational money management, and savings, staking, and deliberate choices can create freedom and flexibility. I don't chase high returns at all costs, and I don't work for money as a purpose. Instead, this time I aim to build a cushion that lets me act without panic when life throws surprises.
XEON, the Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C, is exactly that kind of tool: safe, predictable, and liquid. Perfect for an emergency fund. It tracks the Solactive €STR +8.5 Daily Index, giving exposure to euro overnight rates with a small adjustment.
📄 In short:
Accumulating ETF, returns are reinvested automatically.
Low risk & low volatility, ideal for money you might need quickly.
It's not about excitement or chasing gains. It's about security and predictability, the same principles I've applied to my financial routine for short terms needs.
💡 Why it works for an emergency fund:
Capital preservation: low volatility, slow and predictable movements.
Liquidity: easy to access when needed.
Predictable growth: small, steady accumulation that compounds quietly.
Modest yield: it barely protects against inflation.
Synthetic replication via swaps involves counterparty risk, though carefully managed.
As I've written before, freedom isn't about wealth itself. It's about having choices when you need them. XEON lets you park a portion of your money safely, so your other investments can keep growing without worry.
This is what I'm doing. What about you? Do you keep your money for emergencies in your bank account? Obviously this isn't financial advice, I'll just explain what convinced me 😊
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