CAC 40 ETF

De CAC 40 is the major market index for the French Stock Exchange. Within the CAC 40 you will find the 40 largest publicly traded companies in France based upon their market capitalization.

When we think of large European companies and industries one always thinks of Germany as the cradle of big business in Europe, but that is not entirely the case. France can come up with as much large multinationals as Germany.

Within the CAC 40 you will find companies such as EADS (Airbus factory for instance), Michelin tyres, Accor hotel business, Renault, Danone, L’Oreal, Total etc. 

It is not only through the importance of these companies that the CAC 40 is an interesting market index for trading ETF’s. What it makes it particularly interesting is the fact that it comprises many companies trading in many different market sectors.

The Dutch AEX index for instance often suffers from the fact that it is very depended on only a few companies that comprise of 50% of the total value of this index. The German DAX then again is very much overrepresented in a few market sectors.

Spread and diversity are important factors to keep in mind, especially for long term investors and in this respect the CAC 40 outperforms many other market indices.

Amundi CAC 40 UCITS ETF

In trading the CAC 40 I opted for the Amundi CAC 40 ETF. This decision finds its roots in the large turnover and low costs of this particular ETF. Another asset is that Amundi is a French provider of ETF’s. The owners of Amundi are Crédit Agricole (75%) and Société Generale (25%).

Amundi is using a physical replication which implies that they will buy the underlying stocks and keep these within their portfolio. 

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