ETF (Exchange Traded Fund)

What is an ETF?

ETFs (Exchange Traded Funds), also known as trackers, are index funds that combine the advantages of a security listed on an organized market (simplicity, transparency, liquidity, continuous quotation) with those of traditional funds.

They allow access, in a single transaction and with reduced fees, to the performance of an index, a basket of stocks, a basket of bonds, or commodities.

What do ETFs invest in?

You can use ETFs to invest your money in a wide range of areas, including:

• Equity and bond markets, replicating well-known global stock indices such as the CAC 40, Euro Stoxx 50, and S&P 500, or more specific indices in different currencies.
• Specific geographical areas, such as the United States, Asia, and emerging markets like China or India.
• Industry sectors, such as energy, technology, healthcare, and other long-term trends such as energy transition.
• Responsible investment, for example, by replicating climate strategy indices.

Why invest in ETFs?

• Profitability - ETFs generally have lower costs than actively managed funds.
• Transparency - ETFs track publicly disclosed indices using transparent and rules-based methodologies. In addition, ETFs comply with UCITS standards, which imply strong information constraints and a high level of transparency for investors.
• Accessibility - ETF shares can be easily bought and sold on the stock exchange.
• Diversification - ETFs offer a wide range of investment opportunities.