Bonds: SDEU vs DBDZ

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Topic Author
Stork
Posts: 175
Joined: Wed Feb 17, 2021 9:44 am
Location: Portugal (EU)

Bonds: SDEU vs DBDZ

Post by Stork »

I am in Portugal, for the time being Euroland, and the main event we want to secure against is some sort of Euro breakup.

Lars Kroijer in Investment Demystified suggest Bunds, and I found exactly one ETF: SDEU.

The main alternative to me would be a Euro-hedged World Government Bond ETF, e.g DBDZ. I would think the latter gives better diversification for extreme events, against a (very) small cost. At the other hand, some of the bonds are slightly lower rated (higher risk) which should give a slightly higher return.

Your thoughts? All much the same, or? Any other to consider?
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