Top Companies of France 40 (CAC 40 Index) in 2020

Every person’s dream probably includes going to Paris, but every stock market investor’s goal is outperforming a stock market index like France 40, also known as CAC 40 index.

We are sharing with you the most significant companies listed on Euronext Paris. If you want to invest in French or European companies or benchmark the French stock market index, you should know the updated list of CAC 40 (Fra40).

What is CAC 40 Index?

CAC 40 index is a stock market index launched in 1987, representing a free-float market-cap-weighted index of the top 40 largest and most actively traded stocks listed on Euronext Paris. CAC got its name from the Paris Bourse’s early automation system Cotation Assistée en Continu (Continuous Assisted Quotation).

top companies of france 40 cac 40 index

List of CAC 40 Companies by Market Cap

Like many other stock market indices, CAC 40 goes thru portfolio rebalancing, and its stock composition is reviewed and screened every quarter. Here’s the CAC 40 companies ranking list in terms of market capitalization as of November 7, 2020. The updated list of CAC 40 components is also available at Euronext.

CompanyMarket Cap. (in Euro)
LVMH Moët Hennessy Louis Vuitton219.82 Billion
L'Oreal166.27 Billion
Sanofi104.89 Billion
Hermes Intl.88.08 Billion
Total73.30 Billion
Kering71.66 Billion
Air Liquide65.04 Billion
Schneider Electric64.22 Billion
Airbus54.85 Billion
EssilorLuxottica49.25 Billion
VINCI45.11 Billion
BNP Paribas41.46 Billion
Dassault Systemes40.74 Billion
Safran39.71 Billion
Pernod Ricard38.64 Billion
AXA38.03 Billion
Danone34.09 Billion
Vivendi30.24 Billion
Engie26.87 Billion
STMicroelectronics26.38 Billion
Orange25.07 Billion
Credit Agricole21.44 Billion
Saint Gobain20.00 Billion
Worldline19.38 Billion
Cap Gemini18.70 Billion
Legrand18.53 Billion
Michelin17.25 Billion
Teleperformance17.15 Billion
Peugeot14.73 Billion
ArcelorMittal13.90 Billion
Thales13.48 Billion
Bouygues11.33 Billion
Societe Generale11.16 Billion
Carrefour10.96 Billion
Veolia Environment9.49 Billion
Alstom9.13 Billion
Publicis Groupe7.78 Billion
Atos6.96 Billion
Renault6.71 Billion
Unibail-Rodamco-Westfield4.76 Billion

Benefits of Investing in CAC 40 Index

1. Diversification

One of the benefits of investing in the CAC 40 index is diversification because your fund will be invested in 40 excellent companies. These 40 companies span around different industries like pharmaceuticals, clothing, banks, aerospace, food, construction, technology, automobile, and many more.

2. Minimize Risk

Investing in different sectors can also minimize risk. For instance, if one industry did not perform well, you won’t be losing so much because you are still invested in other sectors that could perform better and could increase your revenue.

3. Excellent Management

Like many stock market indices, the components of CAC 40 are screened periodically to ensure they meet their requirements of the index and provide liquidity. From the top 100 companies, the committee chooses the best 40 most relevant and most suited to their portfolio standards.

4. Big Privilege

Investing in Fra40 companies is also an immense privilege because most of its components are known in Europe and the rest of the world. CAC 40 is a house of famous brands like Airbus, Hermes, AXA, L’Oreal, Peugeot, Sanofi, Total, and LVMH (Moët Hennessy Louis Vuitton).

How to Invest in CAC 40 Index (France 40)

There are three ways to invest and trade French stocks and the CAC 40 index. Both local and international investors can do any of these three methods:

1. By investing CAC 40 ETFs

You can invest in an Exchange Traded Fund (ETF) that tracks the composition or performance of the CAC 40. Some of the most popular CAC 40 ETFs include Lyxor CAC 40 ETF, Amundi CAC 40 ETF, and HSBC CAC 40 ETF.

2. By CFD Trading

International investors can also take advantage of CFD trading. Online brokers like eToro offer CFD (Contract for Difference) trading. If you don’t live in Europe, using a CFD broker will make it possible for you to trade European stocks just like those listed on CAC 40 or Fra40. There are also numerous ETF available to trade from CFD brokers.

By investing directly on the Euronext stock exchange

Another method to invest in the CAC 40 index or French stocks is by investing directly on the Euronext stock exchange. You must be eligible to open an account.

Top Stock Market Indices:

Important Reminder: This article is for information purposes only and should never be considered as professional advice. Every investor has a different risk profile and goal. All investments have risks. Always do your own research before investing in the stock market.

About Fehl Dungo

Founder of DailyPik, trusted fund manager and investor. I have a Degree in Accountancy and a background in Finance. I analyze stocks everyday. COPY my Portfolio on eToro Connect with me on Facebook

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