Dear all,
I am having a hard time deciding how to park 5,000 to 6,000 USD for half a year in something that gives off a bit of interest.
Short term US government bonds have, unlike German government bonds, a positive yield.
While I am fine with a bit of risk wrt to currency (I am in the Eurozone), I would not like to speculate on interest rate developments and therefore, matching the time frame of the financial need, buy only into bonds with significantly less than 3 years to maturity.
Unfortunately, I cannot buy into VGSH, because they do not disclose some kind of information the regulators apparently insist on, and I have not found a good alternative available through my German brokers (ING and Comdirect)
However I could buy a 2 year US Treasury 2020 with 2.5% coupon maturing in June 2020 for reasonable trading costs of 2.9€.
The bond ETF would automatically re-invest, which I would not have a definitive need for. Apart from the fixed maturity, there is nothing wrong with buying this one security over a short term treasury fund, right?