What is CAC 40?

The CAC 40 is the French stock market index that tracks the 40 largest French stocks based on the Euronext Paris market capitalization.

Where is the CAC 40 index traded?

The CAC 40 index is traded as a future on the Euronext Equities & Index Derivatives (EUREID) exchange under the ticker symbol PIL. Although the CAC 40 is almost exclusively composed of French-domiciled companies, about 45% of its listed shares are owned by foreign investors, more than any other main European index.

Why is CAC 40 a popular European index for foreign investors?

The multinational reach of the companies listed on the CAC 40 makes it the most popular European index for foreign investors. 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.

What companies are on the CAC 40?

Household names on the CAC 40 include L’Oréal, Pernod Ricard and Renault. You can choose to buy the shares of individual companies listed on the CAC 40, or track the performance of the index as a whole. Common ways to track performance include investing in index tracker funds or Exchange Traded Funds (ETFs).