What do I invest in with FlexPlus?
Similar to companies, states also regularly borrow money. For
example, the Federal Republic of Germany had over 1,000 billion
euros in federal bonds outstanding at the end of 2022. When you
buy a government bond, you lend the state an agreed sum for a
fixed period of time. In exchange for lending the money, the
government regularly pays interest at a predefined rate.
With Portfolio FlexPlus, one does not invest directly in these government bonds but in various ETFs, which in turn invest in the government bonds of various countries. By using ETFs, the FlexPlus Portfolio allows risk to be spread very cost-effectively in 10 different European countries, while they can also be traded on the stock exchange.
The portfolio comprises three different ETFs from three well-known providers, such as iShares (Blackrock) and Amundi. The ETFs themselves include only European sovereigns with high credit ratings. This means that the probability of default is comparatively low. In addition, we have made sure that there is no currency risk due to the focus on Europe. Due to the relatively short maturity of up to 3 years, the interest rate risk remains low.
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