Open
7818.36
Prev. Close
7896.93
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.
| Feature | CAC 40 | DAX | FTSE 100 |
|---|---|---|---|
Country / Constituents | France / 40 | Germany / 40 | UK / 100 |
Weighting | Free-float market-cap | Free-float market-cap | Free-float market-cap |
Currency / Common Variant | EUR; price and total-return published | EUR; often cited as total-return | GBP; price and total-return published |
Sector Tilt (typical) | Luxury/consumer, industrials, energy, health care, financials | Industrials, autos, chemicals, health care | Energy, financials, staples, miners |
Review / Rebalance | Quarterly by Euronext committee | Quarterly reviews; 15% cap | Quarterly by FTSE Russell |
Notes | Global multinationals; euro exposure | Expanded to 40 in 2021; dividend-inclusive quotes are common | Higher dividend yield profile; GBP exposure |
FAQs
Is CAC 40 only for French companies?
Not strictly. Companies must be listed on Euronext Paris and meet size/liquidity screens, but several members operate globally and some have cross-border corporate structures. What matters is Paris listing, liquidity, and free-float market cap – not that 100% of operations are in France.
How many companies are listed in CAC 40?
The index deliberately limits membership to 40 highly liquid, large companies so it stays investable, derivative friendly, and representative of the French market’s leaders without becoming unwieldy.
Which sectors are most represented in the CAC 40 index?
Weights move with prices, but the index typically skews toward luxury/consumer discretionary, industrials, financials, energy, and health care. Always check the latest factsheet or provider data before allocating, as sector balance can shift after committee reviews.
What is the base year and value of the CAC 40 index?
The base value was fixed at 1,000 points on December 31, 1987, with an official launch in June 1988. This provides a long, consistent history for cyclical and cross-market comparisons.
How often is the CAC 40 index updated or rebalanced?
An independent Euronext committee reviews the index quarterly. Selection ranks Paris-listed stocks by free-float market capitalization and turnover; from the top 100, forty are chosen to keep the benchmark investable and derivatives-ready. Changes take effect after the review timetable.
Can foreign investors invest in the CAC 40 index?
Yes. Investors outside France can access the CAC index through Euronext-listed ETFs or derivatives, subject to local regulations. Indian investors typically remit under RBI’s LRS, then purchase CAC 40-tracking funds through an eligible overseas broker.
Which are the top companies by market capitalisation in CAC 40?
As of August 2025, leaders by market cap include LVMH, Hermès, L’Oréal, Airbus, Sanofi, and TotalEnergies. The exact ranking changes with prices and corporate actions, so confirm live data before trading or reporting weights.
How is CAC 40 different from the SBF 120 index?
SBF 120 is broader as it combines the CAC Large 60 and the CAC Mid 60 – 120 names total – offering wider French equity exposure for funds and structured products, still using free-float market-cap weighting and liquidity screens. CAC 40 is the narrow blue-chip subset.
What factors influence the movement of the CAC 40 index?
European growth, ECB policy rates and guidance, euro exchange rate, global risk sentiment, and sector drivers (e.g., luxury demand from China/US, energy prices, health-care pipelines) all matter. Company-specific news and quarterly committee changes can also move the index.
What currency is CAC 40 traded in?
The CAC stock index and its Paris-listed constituents are quoted and traded in euros (EUR). If your base currency is INR, your realised return includes both the equity move and EUR/INR currency changes unless you explicitly hedge.