@RektflipOnNoiseApp 22 August 2024

I made a small investment into the Xtrackers EUR Overnight Rate Swap UCITS ETF. It's an exchange traded index fund on the Solactive €STR +8.5 Daily index. This fund basically reproduces the interest that is paid by the European central bank using swap contracts. It's nothing you should consider for wealth building. Rather as a way to park money that you can't invest into stocks because you need it in the short or mid term. You only need to keep an eye on the central banks decisions, because you need to pull your money out when interest rates turn negative again. This is why this chart looks so funny. You can clearly see the value decreasing until the ECB started increasing rates to fight inflation.