ETF stable Bonds in CHF

Investing / Brokers
1

Dear Mustachians,

I have received a substantial bonus payment (Gross) and I would like to “park” the portion that will be due for tax in a couple of years.

If it existed, I would deposit into a savings accounts, but in Switzerland they pay 1%, max 2% and with strong limits on withdrawals.

As such I was wondering if it existed any ETF that track “reliable” Government bonds (i.e. from US, Germany etc.) but issued in CHF to have currency fluctuation protection.

Otherwise, any better idea?

Thanks for your inputs!

2

If it needs to be stable, you wont get more than the 1-2% depending on timeline. Anything with potential for more, is more risky and prone to fluctuations.

You can have something like a 2 year CD at ~2%.

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3

1-2% would be the max those would pay.

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6

What is a CD?

7

Probably, but at least there are no rigid rules /limits for withdrawals (sell)

8

iShares USD Treasury Bond 1-3yr UCITS ETF CHF Hedged (Acc) would be the best fit, as far as I can tell. However, while the bond duration is fairly short, it’s still too long term for your goal, in my opinion. I don’t see any shorter term CHF-hedged gov bond ETF, though.

I would simply move the money to a flexible savings account (Yuh is completely flexible but you only get 1% p.a.).

Related topic: Short guide to CHF fixed income options

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Certificate of deposit/Kassenobligation.

You basically deposit a sum of money at a bank for a fixed duration, e. g. two years and you‘ll get a yearly interest for that. But usually can‘t get the money beforehand or only with a penalty.

That‘s basically the safest thing you can do with a guaranteed interest and no fluctuations.

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