UBS Bloomberg Barclays TIPS 10+ vs Xtrackers II EUR Overnight Rate Swap

They track different indices: UBS Bloomberg Barclays TIPS 10+ follows Bloomberg US Treasury Inflation Linked Bond 10+ and Xtrackers II EUR Overnight Rate Swap follows €STR (mercado monetario). They also differ in cost (0.20% vs 0.10% TER), replication (physical vs synthetic) and domicile (Luxemburgo vs Luxemburgo).

Nobody can know that: they track different indices, so their returns will diverge, and past index performance is not a prediction. What you can control today is the cost, the tax structure and whether the index actually covers what you want exposure to.

Xtrackers II EUR Overnight Rate Swap has the lower annual fee. Applying the same 7% gross return to both with €300/month, that fee gap alone is worth about €1,880 after 20 years — that part is arithmetic, not a forecast.

Xtrackers II EUR Overnight Rate Swap is accumulating (dividends are reinvested inside the fund) and UBS Bloomberg Barclays TIPS 10+ is distributing (dividends are paid out to you). For long-term compounding in Spain, accumulating usually defers taxation; distributing gives you income you are taxed on each year.

Yes. Unlike two funds tracking the identical index, these give you genuinely different exposure, so holding both is not automatically redundant — just be aware you may end up overlapping on the largest companies and doubling your rebalancing work.