Hi,
I'm trying to build a balanced portfolio composed of 70% equities and 30% bonds+MMF. I'm using T212 and prioritizing UCITS ETF as much as possible, since my deposits and withdrawals are in EUR
The equities part is actually a combination of ETFs (indices, dividends and a satellite portion of individual stocks), and the bond part is, so far, composed of these 4 ETFs:
\-35%: VDST (US treasury 0-1Y) \[USD\]
\-15%: CSBGE3 (EUR Gov bonds 1-3Y) \[EUR\]
\-15%: ERNX (EUR ultrashort Corp bonds) \[EUR\]
\-35%: XEON (EUR Overnight rate swap)\[EUR\]. I know this one is an MMF but I'd like to include it here as part of my "stability portion".
I'm mostly concerned of the convenience about keeping VDST, since the FX impact could erase my gains if USD weakens. I tried to find a UCITS EUR-hedged ultra-short US Treasury bond (since I still want exposure to US bonds), and the closest equivalent I've found so far is PR1H, but the fund size is somewhat low compared to VDST, I don't know how important is this to decide replace VDST with this one. ERNX is here just for diversification with EUR Corp bonds, and as a yield-enhanced bond ETF).
My other doubt is about CSBGE3. I got this one to have exposure to EUR gov bonds and some cushion in case of recession/crash, but given that it's 1-3Y, it's more rate-sensitive and I don't know how good or bad will be the situation given the Iran war, stagflation fears, etc. I'm evaluating if keeping only 3, allocated like this within my stability portion:
VDST (or PR1H): 40%, XEON: 40%, ERNX: 20%
Does this sound reasonable? My intention is stability + capital preservation + cash-like. If there is a good reason to keep CSBGE3, drop it, or replace it with another UCITS ETF, just let me know. In all cases I lean towards ETFs with a decent fund size, low TER and capable enough to navigate through the current war mess and its possible long-term consequences. Thanks for any input!