:max_bytes(150000):strip_icc()/GettyImages-1395187689-e35a3c9e9e994ec4b2bc9755e4f7fc04.jpg "France ETFs Explained (CAC 40)")
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Key Takeaways
- The CAC 40 is an index of the 40 largest and most liquid companies on the Euronext Paris stock exchange.
- Key CAC 40 companies include L’Oréal, LVMH, TotalEnergies, and Sanofi.
- Investors can access the CAC 40 through ETFs like BNP Paribas Easy CAC 40 ETF and Amundi CAC 40 ETF.
- Carefully review expense ratios when choosing an ETF as they affect returns.
- As of Dec. 31, 2023, the CAC 40 had a dividend yield of 2.98%.
The CAC 40 is the benchmark stock index of the 40 largest companies by market cap that are listed on the Euronext Paris, France’s leading stock exchange. CAC stands for Cotation Assistée en Continu, meaning Continuous Assisted Quotation. It represents the pulse of the French economy, featuring major companies such as L’Oreal, LVMH, and Sanofi.
Overview of CAC 40 ETFs
Below are the main exchange-traded funds (ETFs) that follow the CAC 40.
BNP Paribas Easy CAC 40 ETF
The BNP Paribas Easy CAC 40 ETF launched in 2005 and aims to replicate the performance of the CAC 40 index. It holds about €310.7 million as of April 5, 2024, and carries an annual charge of 0.25%. Top holdings include LVMH, L’Oreal, Sanofi, and Schneider Electric. Its top three sector allocations are industrials (29.67%), consumer cyclical (19.41%), and consumer defensive (13.23%) as of April 8, 2024.
Important
When choosing an ETF, pay attention to the expense ratio, which is the cost you pay for investing in the fund. Expense ratios reduce your take-home returns.
Amundi CAC 40 ETF
The objective of the Amundi ETF CAC 40 is to mirror the performance of the CAC 40 index without regard to market trends. The fund has approximately €999.3 million under management as of April 5, 2024, and carries an expense ratio of 0.25%. The fund’s top holdings are LVMH, Schneider Electric, Sanofi, Airbus, and L’Oreal. The top three sector allocations are industrials (29.71%), consumer discretionary (19.95%), and financials (12.91%) as of April 3, 2024.
Xtrackers CAC 40 ETF
The investment objective of the Xtrackers CAC 40 is to track the 40 largest and most liquid companies on Euronext Paris. The fund has an AUM of €122.4 million as of April 5, 2024, and an expense ratio of 0.20%. The top fund holdings are LVMH, TotalEnergies, Schneider Electric, Airbus, and L’Oreal. The top three sector holdings are consumer discretionary (24.23%), industrials (23.55%), and healthcare (9.64%) as of Dec. 29, 2023.
What Companies Are in the CAC 40?
Companies in the CAC 40 include L’Oreal, LVMH, Hermes, TotalEnergies, Schneider Electric, BNP Paribas, Airbus, AXA, Credit Agricole, Renault, Sanofi, Michelin, and Pernod Ricard.
How to Invest in the CAC 40?
There are a few methods one can opt for to invest in the CAC 40 but the easiest would be to invest in funds that track the index. There are a few ETFs that investors can choose from, such as BNP Paribas Easy CAC 40 ETF, Amundi CAC 40 ETF, and Xtrackers CAC 40 ETF.
What Is the Dividend Yield of the CAC 40?
As of Dec. 31, 2023, the dividend yield of the CAC 40 was 2.98%.
The Bottom Line
The above ETFs will allow investors to gain exposure to the largest and most liquid blue-chip companies in France. Another option that can be explored by investors looking to invest in the same region is iShares MSCI France UCITS ETF. The fund tracks the MSCI French Index instead of the CAC 40, which has a slightly higher number of holdings: 62 versus 40.
