XEON vs CSH2: costs, risks and choosing a euro cash ETF
Two euro overnight ETFs, compared by what you own and what you actually keep after costs.
Both share classes have a quoted 0.10% ongoing cost and accumulate income. Compare the benchmark, execution costs and tax treatment: neither locks in an annual return or provides bank-deposit protection.
Compare your returns
Change the starting assumptions to compare what each option would leave you after tax, costs and inflation.
Use an annual equivalent return for each option. Enter ETF returns after ongoing fund charges and put commissions and spreads in total costs. Use the effective tax rate for each option in your tax residence.
Both options leave the same net gain at these assumptions.
This illustration compounds annual returns and inflation over the selected period. It applies tax to positive gains at the end, before subtracting the total costs entered above.
XEON vs CSH2 at a glance
XEON and CSH2 are commonly used to obtain exposure to euro overnight rates through a brokerage account. For the accumulating share classes below, the quoted ongoing cost is the same. Your broker’s charges, the dealing spread and your holding period can therefore matter more than a small difference in fund performance.
| Feature | XEON | CSH2 |
|---|---|---|
| Fund | Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C | Amundi Smart Overnight Return UCITS ETF ACC |
| ISIN | LU0290358497 | LU1190417599 |
| Share-class currency | EUR | EUR |
| Income treatment | Accumulating | Accumulating |
| Replication | Indirect, using swaps | Indirect, using swaps |
| Reference benchmark | Solactive €STR +8.5 Daily Total Return Index | Compounded €STR |
| Annual ongoing cost | 0.10% | 0.10% |
| Domicile / framework | Luxembourg / UCITS | Luxembourg / UCITS |
| Deposit guarantee | Not a bank deposit | Not a bank deposit |
Product facts were checked on 6 November 2026 against DWS’s product information, the Amundi KID and its factsheet. Confirm the latest documents before trading. Tickers depend on the exchange: match the ISIN, share class, trading currency and venue in your broker.
What does the benchmark difference mean?
The ECB’s €STR measures euro-area banks’ overnight wholesale borrowing costs. It is an overnight reference rate that can change, rather than an annual return locked in for an investor.
XEON’s index adds 8.5 basis points, equivalent to 0.085 percentage points, to €STR before the fund’s costs and tracking effects. Subtracting the quoted 0.10% ongoing cost gives a rough mechanical starting point of €STR minus 0.015 percentage points. This is an approximation, not a promised yield. CSH2’s current KID identifies compounded €STR as its benchmark; it does not promise a fixed premium over that rate.
Compare realised net asset value returns over identical dates and in euros. A benchmark adjustment alone does not establish which fund will deliver the higher realised return. Both accumulating classes retain income in the fund, so return is reflected in the share value rather than a regular cash payment.
What do the costs mean for €10,000?
A 0.10% annual fund cost is approximately €10 on an unchanged €10,000 balance for a full year. Historical fund returns reported after ongoing charges already include that deduction: subtracting the fee again understates the return. Broker commissions, custody charges, currency conversion and the bid–ask spread can still be additional costs.
Suppose an ETF earns an annualised 2.50% after fund costs for 30 days. Using a simple 365-day approximation, €10,000 earns €20.55 before tax and trading costs. If buying and selling together cost €10, including the estimated spread, the remaining gain is €10.55 before tax. These are hypothetical inputs, not today’s yield or an offer from either issuer.
For scale, a five-basis-point annual return advantage is only €5 a year on €10,000, or about €0.41 over 30 days. One extra dealing charge could outweigh it. Check the total cost for the amount and time you actually intend to hold, rather than comparing annual percentages in isolation.
Liquidity and safety: what a cash ETF cannot promise
Both use derivatives, so the swap counterparties and the fund structure matter. Their KIDs describe investment risks and do not guarantee a minimum return. UCITS safeguards and separation of fund assets from a manager’s assets should not be confused with a guarantee against losses. See the XEON KID and CSH2 KID.
A sell order also involves the exchange’s opening hours, available market liquidity, execution and settlement. The balance shown after a sale may not yet be cash you can withdraw. A market order can execute at a different price from the quote you last saw; check the spread and execution terms. Money required for an immediate bill needs an access plan outside the ETF.
If your spending currency is not the euro, exchange-rate changes and conversion charges add another consideration. A listing in a different currency does not, by itself, change the fund’s underlying exposure or establish that the investment is currency-hedged.
How to choose between XEON and CSH2
Start with the share class your broker actually offers. Compare the live buy and sell quotes for the same order size, total commissions, custody charges and the ability to transfer or sell the position. Then compare net fund performance over matching periods and read the current KID. A broker’s promotion can change, so make sure an inexpensive purchase does not conceal a costly exit.
Tax residence and account type can change the result. Accumulating does not universally mean tax-free until sale: national rules may tax income, deemed income or gains differently. Use the appropriate local treatment rather than carrying another country’s headline tax rate into your calculation.
If your main requirement is a fixed return or deposit protection, first read money market ETF vs term deposit. For products currently tracked by EuroYields, open the euro money market comparison and inspect each row’s source and review status. The table is a starting point for checking available products, not a guarantee of an executable return.
Common questions about XEON and CSH2
Does either ETF lock in today’s interest rate?
No. Their overnight-rate exposure resets as the reference rate changes. The ECB Watch shows modelled expectations for future policy decisions; those expectations are not a promised ETF return.
Can either replace every part of an emergency fund?
Consider how quickly you must access the money and whether investment risk is acceptable for that purpose. Exchange dealing and settlement differ from access to an ordinary bank balance.
Is there a universal winner?
No. At the same quoted ongoing cost, the more useful comparison is the net result through your broker, for your holding period and tax situation. Check the ISIN before relying on a ticker alone.
Sources and editorial notes
Product details were checked against issuer documents on 6 November 2026. Examples are EuroYields calculations using the assumptions stated beside them. Rates and charges can change; the examples do not represent executable offers. This is general information, not a personal investment recommendation.