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@trnich My understanding is because it's an ETF, there's price fluctuations due to the ETF trading, but I might be wrong. Keep in mind this is not a short term bond ETF, it's a synthetic ETF tracking the €STR.

@crunchtime89 That's a small problem as I understand it, simply hold it more than 6 months. Those funds are for long term investment anywaysl. 🙂

@crunchtime89 Why not invest in one fund forever? Why the need to rotate?

@tzadik Check out this article: https://www.justetf.com/en/academy/synthetic-replication-of-etfs.html

@inkarpathos It's 3.5%, not 35%.

@crunchtime89 Do you mean less than 6 months?

@inkarpathos Correct, for the one I mentioned it's 0.1%.

@submiracle Because the small cap premium might not exist. Ben Felix has a video on this: Personally I'd like Vanguard or iShares to create a World Small Cap Value ETF and I would combine that with VWCE.

@dowthut Xtrackers II EUR Overnight Rate Swap UCITS ETF Tracks the performance of a deposit earning interest at the Euro short term rate plus 8.5 basis points adjustment. The euro short term rate currently is 2.9%. It's a synthetic ETF, so keep in mind there's some counterparty risk.

@edee Why? With more than one funds you might be tempted to tweak your allocation when one of them is underperforming for some time. This equals to performance chasing which lowers your expected returns. If you have the choice to combine multiple funds into one, with reasonable cost, take it...

@mkrist €STR is 3.9%, so it's possible to get higher than 3%. You can get €STR with XEON.

@resjudicata How is it possible not to have transaction costs? Does it not rebalance? Maybe it's 0 because it hasn't done so yet.

@vrogers What you are saying is true. However that is information known to everyone and is priced in. That's why Europe and other markets have lower valuations than USA.

@justiceformyfoot There's no reason to believe US outperformance will continue. I invest in All World.

@mnzrt That's correct. Even Ben Felix has a video about the size factor, where he says that recent research shows that the size factor does not provide excess returns, but it comes back to life when combined with the value factor (small cap value).

@janetmal Thanks for the clarification!

@jan800 As a European investor you don't need a three fund portfolio because USA and ex-USA are available in a single fund such as Vanguard FTSE All-World or SPDR MSCI ACWI IMI. For bonds you can use Vanguard Global Aggregate Bond EUR Hedged or ishares Global Aggregate Bond EUR Hedged. Assuming...

@janetmal This seems wrong. Isn't it market cap weighted? However there's MSCI World Value Weighted as well.