CAC 40

What Is the CAC 40 Index?

The CAC 40 index is France’s flagship equity benchmark, tracking 40 large, liquid companies listed on Euronext Paris. It’s free-float market-cap weighted and reviewed by an independent committee to keep it investable and representative. The CAC acronym stems from “Cotation Assistée en Continu” (continuous quotation). The index’s base value was set to 1,000 on December 31, 1987, with an official launch in June 1988.

Selection focuses on Paris-listed companies ranked by free-float market cap and turnover, ensuring depth and tradability. Because many CAC 40 members are global multinationals, the index reflects both French and worldwide trends – luxury demand, energy prices, euro moves, and European Central Bank policy all matter. Investors often track both the price and total-return versions to account for dividends.

Top Companies in the CAC 40 Index

How to Invest in CAC 40 from India?

The simplest path is a CAC 40-tracking ETF listed on Euronext Paris; you buy it through an overseas brokerage account. Funding typically goes under the RBI’s Liberalised Remittance Scheme (LRS), which permits up to USD 250,000 per resident individual each financial year for eligible investments.

Map your full cost stack before you move money: bank FX spread, remittance fees and any applicable TCS, brokerage commissions, and the ETF’s expense ratio. Taxes apply in India on foreign capital gains and dividends.

If you prefer broader France exposure, large France-focused ETFs (e.g., MSCI France) exist, but they are not CAC 40 specifically. Sophisticated users sometimes use index futures, but these require approvals and comfort with margin. Keep in mind euro exposure adds a currency return on top of equity performance.

CAC 40 Historical Performance Chart

CAC 40 vs DAX vs FTSE 100: Key Differences

While all three are Europe’s headline blue-chip gauges, each has a distinct flavour. CAC 40 (France) and DAX (Germany) both hold 40 names and are free-float market-cap weighted. DAX is commonly referenced in a total-return form, so its quoted level often bakes in dividends. FTSE 100 (UK) has 100 constituents and is quoted in GBP; it tends to feature higher dividend yield than continental peers.

Sector tilts differ: the CAC stock index is heavy in luxury/consumer discretionary, industrials, energy, health care, and financials; DAX leans toward industrials, autos, chemicals, and health care; FTSE 100 is rich in energy, financials, consumer staples, and miners.

All three are reviewed/rebalanced on a periodic schedule by their respective providers. Currency (EUR vs GBP) and index variant (price vs total return) make apples-to-apples comparisons tricky – know which series you’re using and hedge FX if needed.