Balancing treasury investments with Smart Overnight and Amundi High Yield ESG ETFs

For both individuals and companies, managing treasury efficiently means finding the right balance between safety, liquidity, and performance. Too often, investors focus on a single product, exposing themselves to interest rate cycles. At Velesios, we highlight the power of combining two complementary ETFs: Smart Overnight (LU1190417599) and Amundi High Yield ESG (LU2346257210).

Together, they form a treasury investment strategy that adapts across economic cycles, balancing returns whether the European Central Bank (ECB) raises or lowers rates.

Smart Overnight: safety, liquidity, and ECB-linked returns

Smart Overnight is an ETF directly linked to the ECB deposit rate. Its main characteristics are:

• ECB-driven performance: when the ECB increases rates, Smart Overnight’s yield rises. If rates fall, the yield decreases accordingly.
• Daily interest accrual: performance is reflected day by day, offering predictable growth.
• Low risk: as a euro money market ETF, it’s one of the safest financial instruments available.
• Liquidity: investors can access funds at any time, making it ideal for short-term treasury.

In short, Smart Overnight is the closest equivalent to a “non-capped Livret A” for both companies and individuals, but with superior flexibility.

Amundi High Yield ESG: medium-term corporate bonds with upside

Amundi High Yield ESG provides access to a diversified portfolio of corporate bonds with environmental, social, and governance (ESG) criteria. Its key features:

• Inverse sensitivity to rates: when ECB rates rise, yields tend to fall; when ECB rates fall, the ETF’s performance improves.
• Attractive yields: high yield corporate bonds can outperform traditional deposits, especially in declining rate environments.
• ESG integration: investors can align treasury investments with responsible finance.
• Diversification: exposure across multiple issuers reduces single-credit risk.

This ETF is well-suited for medium-term treasury allocation, complementing Smart Overnight.

Why combine both ETFs?

The strength of this strategy lies in complementarity:

• If ECB rates rise → Smart Overnight benefits with higher yields, while Amundi HY ESG may underperform.
• If ECB rates fall → Amundi HY ESG performs strongly, while Smart Overnight yields decrease.

By holding both ETFs, individuals and companies ensure that their treasury performs across different market cycles. It’s a simple yet effective hedging and balancing approach.

How Velesios simplifies treasury investments

At Velesios, we make this dual-ETF strategy accessible to both individuals and companies:

• Easy onboarding: open a securities account directly on our platform.
• Interactive Brokers partnership: execution and custody handled in the background by a global broker.
• Lower fees: we aggregate client orders to reduce transaction costs.
• User-friendly dashboard: designed to make treasury investments as simple as online banking.

Conclusion

Treasury investments should not rely on a single product. By combining Smart Overnight and Amundi High Yield ESG, individuals and companies gain a flexible, diversified, and resilient strategy.

With Velesios, it becomes simple: open an account, access both ETFs, and let your treasury adapt naturally to economic cycles.

FAQ: treasury investments with Smart Overnight and Amundi HY ESG

Why not use only Smart Overnight?
Because its performance falls when ECB rates decrease. Pairing it with Amundi HY ESG balances the risk.

Why not use only Amundi High Yield ESG?
Because it underperforms when rates rise. Combining with Smart Overnight creates stability.

Are both ETFs safe?
Smart Overnight is ultra-low risk. Amundi HY ESG carries more credit risk but is diversified and ESG screened.

Can companies and individuals invest?
Yes, through Velesios both corporate and private investors can open a securities account.

What are the fees?
Velesios reduces costs by aggregating client orders, making ETFs more cost-efficient than traditional banking products.

Sources & references

• Banque de France – Household savings
• Interactive Brokers – Brokerage solutions
• AMF – Financial markets regulation in France‍
• Amundi Smart Overnight Return UCITS ETF – Factsheet‍
• Amundi EUR High Yield Corporate Bond ESG UCITS ETF – Factsheet