The history of the CAC 40 begins in 1987, when its base value of 1,000 was set on December 31. Using our derivative product, you’ll buy or sell CFDs to exchange the price difference of the France 40 between the opening and closing position. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. 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%.
Index composition
The index also gives a general idea of the direction of the Euronext Paris, the largest stock exchange in France formerly known as the Paris Bourse. As the benchmark index for the French market, the CAC 40® is one of the biggest European stock markets, hence it’s one of the most important national indices of the pan-European stock exchange group, Euronext. Euronext manages a variety of exchanges located in six different countries. The company operates the world’s most liquid exchange group, with nearly 4,000 listed companies, representing a total market capitalization of approximately $30.5 trillion. The CAC 40 is the French equivalent of the Nikkei (Japan), the Hang Seng (Hong Kong) and the Dow (United States).
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She has worked in multiple cities covering breaking news, politics, education, and more. CAC stands for ‘Cotation Assistée en Continu’ , loosely translated in English to ‘continuous assisted trading’. The name is derived from its value being updated every 15 seconds from Monday to Friday between 9am and 5.30pm (UTC+2). We endeavor to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide. 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%.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. The CAC 40® is a stock market index that tracks the 40 largest shares listed on the Paris Stock Exchange.
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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. The CAC 40 index represents the 40 largest equities listed on the Euronext Paris in terms of liquidity, and includes such companies as L’Oreal, Renault, and Michelin. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology.
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Forty companies from the top 100 are chosen to enter the CAC 40, and If a company has more than one class of shares traded on the exchange, only the most actively traded of these will be accepted into the index. The CAC 40, or CAC Index, is one of the world’s major stock indices and lists the 40 largest companies by market capitalization on the Euronext Paris, France’s largest stock exchange. France represents around a fifth of the total economy of Europe, so it is important for traders to follow the CAC 40 index to ascertain where the European economy is heading. The CAC 40 index represents the 40 largest equities listed on the Euronext Paris. The companies selected for the CAC 40 are chosen based on market capitalization and liquidity. The CAC 40 currently includes such well-known companies as L’Oreal, Renault, and Michelin.
- This information has been prepared by IG, a trading name of IG Markets Limited.
- At each review date, the committee ranks companies listed on Euronext Paris according to free float market capitalization and share turnover in the previous year.
- However, it fell after that and hit around 3,000 during the economic crisis of 2011.
- If a company has more than one class of shares traded on the exchange, only the most actively traded of these will be accepted into the index.
The components and weighting of the index are reviewed and adjusted quarterly. At each review, the committee considers factors such as the free-float market capitalization and share turnover from the previous year. CAC 40 stands for Cotation Assistée en Continu, which translates in English to “continuous assisted trading”, and is used as a benchmark index for funds investing in the French stock market.
Real estate, by contrast, is the smallest segment which is fairly typical of indexes such as these. The index peaked during the dot-com bubble soaring up to a peak of nearly 7,000. However, it fell after that and hit around 3,000 during the economic crisis of 2011. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger France 40-bearish contrarian trading bias. IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc.
The CAC 40 is a market-cap weighted index of 40 of the 100 companies with the highest market cap on the Euronext. In this way, the CAC 40 closely approximates the Dow Jones Industrial Average. That is like the Dow in the United States, the CAC 40 is the most commonly used index to analyze the overall level https://www.broker-review.org/ and direction of the French market. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument.
He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Here are the current sectors that are part of the CAC 40 Index with their current weighting. As you can see, the Industrials sector is the largest in terms of percentage taking up nearly one-quarter of the index.
The index tracks 40 of the largest French stocks based on their market capitalization on the Euronext Paris. The composition of the CAC 40 is reviewed every quarter by an independent committee. Companies are ranked according to share turnover and number of publicly traded shares, and represent different business sectors. With us, you’ll trade on the CAC 40® price with our France 40 offering using a CFD trading account. When trading via CFDs, you won’t take ownership of the underlying asset outright, but you’ll be speculating on the France 40 price rising or falling.
IG International Limited receives services from other members of the IG Group including IG Markets Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. You can trade via the spot price, which is closest to the underlying price with low spreads, but includes overnight fees. Alternatively, you can trade via futures contracts, which have wider spreads but no overnight fees. Community reviews are used to determine product recommendation ratings, but these ratings are not influenced by partner compensation.
DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. The CAC 40, or CAC Index, lists the 40 largest companies by market capitalization plus500 review on the Euronext Paris. France represents one fifth of the total economy of Europe, therefore the CAC 40 index can help traders ascertain where the European economy is heading.
CAC 40 (which stands for Cotation Assistee en Continu or “continuous assisted trading”) is used as a benchmark index for funds investing in the French stock market. The index is also used to give investors a snapshot of the broader market conditions of the Euronext Paris, which is the largest stock exchange in Paris. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider.
The selection of stocks are based on market capitalisation and the index is commonly used as an indicator of France’s market performance. The index is made up of the largest 40 companies listed in France screened by market capitalization, trading activity, size of balance sheet, and liquidity. The multinational reach of the companies listed on the CAC 40 makes the index one of the most popular European indexes for foreign investors.
