Euro Bond ETF & Minimum Risk Asset

[Moneymonkey]

Hi all,

I can't find a previous thread discussing this topic so apologies if I have missed it.
As an Irish Investor,I would say that the 'Minimum Risk Asset' for the puposes of diversification in my ETF portfolio would consist of say, German or French govt bonds. Can anyone tell me of an accumulating ETF which consists solely of these?

Thanks. MM.

 

[Boyd]

Not exclusively those countries, but pretty close:


46% France
33% Italy
15% Germany

 

[Sarenco]

Unless you're talking about really significant sums and assuming this is for non-pension savings, I think you would be better advised to choose a mix of Rabo's instant access, 30 and 90 day notice accounts (Rabo is one of the safest banks in the world and up to €100k per depositor is fully guaranteed by the Dutch government) and/or Irish State Savings Certs and Bonds.

With an EU domiciled ETF you will have to pay a fund TER, broker commissions and an exit tax on any gains of 41%. Besides which, the yield to maturity on Citi's European Government Bond Index (EGBI) (the index that most relevant funds/ETFs track) was only 0.78% at the end of September 2015, with an effective duration of over 7 years.