What is the CAC 40?

The CAC 40 (Cotation Assistée en Continu) is the benchmark French stock market index. It tracks the performance of the 40 largest and most actively traded multinational companies listed on the Euronext Paris stock exchange.

It represents a diverse mix of industries, but is particularly world-renowned for its heavy concentration of global luxury goods, cosmetics, and aerospace companies. Major constituents include LVMH, L'Oréal, Hermès, TotalEnergies, and Airbus.

Ticker: ^FCHI

Curiosity: France is the undisputed global capital of luxury, and the CAC 40 reflects this perfectly. The index is heavily dominated by high-end fashion and cosmetics conglomerates. In fact, LVMH (the parent company of Louis Vuitton, Dior, and Moët & Chandon) became the first European company ever to surpass a $500 billion market valuation, single-handedly driving a massive portion of the CAC 40's overall growth.