The CAC 40 is the French stock market index that tracks the 40 largest French stocks based on the Euronext Paris market capitalization. The CAC 40 started with a base value of 1,000 in December 1987 and continued to operate on a total market capitalization system until 2003 when it was changed to a free float-adjusted market capitalization methodology. The CAC 40 is the benchmark equity index for public companies traded on the Euronext Paris. The multinational reach of the companies listed on the CAC 40 makes it the most popular European index for foreign investors.
Trading the CAC 40
A number of exchange-traded funds (ETFs) follow the CAC 40. Among them are:
Amundi ETF CAC 40 (C40) DBXT CAC 40 (X40) ComStage ETF CAC 40 (PC40)
Lyxor ETF CAC 40 (CAC) EasyETF CAC 40 (E40)