📋 Video Summary

🎯 Overview

This video by Finary presents a top 7 list of ETFs (Exchange Traded Funds) eligible for the PEA (Plan d'Épargne en Actions) in 2026. The video analyzes various ETFs, considering factors like fees, tracking performance, and long-term potential, providing viewers with valuable insights for their investment strategies.

📌 Main Topic

Top 7 ETFs eligible for the PEA in 2026, focusing on diversification, fees, and performance.

🔑 Key Points

• 1. MSCI World ETF [0:26]

- Represents 1500+ companies from 23 developed countries.

- The CW8 (Amundi), High Shares, and a new Amundi ETF are the main options. - Considerations: High US weighting (70%), liquidity, and tracking error.

• 2. S&P 500 ETF [3:29]

- Tracks the 500 largest US companies.

- Offers high liquidity and historical returns (around 10% annually). - Considerations: Sector concentration (Tech), currency risk (USD), and synthetic replication in PEA.

• 3. STOXX Europe 600 ETF [7:05]

- Covers 600 European companies across 17 countries.

- Provides geographical diversification within Europe. - Considerations: Exposure to "old economy" sectors, lower historical returns than S&P 500.

• 4. CAC 40 ETF [9:37]

- Focuses on the 40 largest French companies.

- Offers exposure to the French market and potentially, dividends. - Considerations: Geographic concentration, lower long-term returns compared to global indices.

• 5. Russell 2000 ETF [11:35]

- Invests in approximately 2000 small-cap US companies.

- Offers diversification by market capitalization and potential for higher returns. - Considerations: Higher volatility, underperformance in recent years, sensitivity to economic cycles.

• 6. MSCI Emerging Markets ETF [13:53]

- Includes large and mid-cap companies from 24 emerging countries.

- Offers high growth potential and diversification outside developed markets. - Considerations: Higher volatility, political and currency risks.

• 7. MSCI China ETF [15:56]

- Focuses on the Chinese market.

- Offers potential for high returns and market decorrelation. - Considerations: High volatility, geopolitical risks, government control.

• 8. MSCI India ETF [17:42]

- Focuses on the Indian market.

- Offers potential for high growth. - Considerations: High volatility, currency risk, and valuation risks.

💡 Important Insights

• • ETF Fees: [0:14] The video emphasizes the importance of low fees when selecting ETFs.
• • Tracking Error: [2:22] The presenter explains that tracking error is crucial to assess an ETF's performance.
• • Core-Satellite Approach: [13:01] The video recommends a core-satellite investment strategy, using a core of diversified ETFs (MSCI World, S&P 500) and satellite investments in more niche or higher-risk areas.

📖 Notable Examples & Stories

• • S&P 500 Performance: [3:47] The video highlights that the S&P 500 historically delivered around 10% annualized returns over the past 50 years.
• • The Covered/Hedged vs. Non-Hedged S&P 500 ETF: [5:50] The video explains the impact of currency hedging, using a scenario where the S&P 500 rises by 20% while the Euro drops 95% against the dollar.
• • Jack Ma's Example [16:47]: The presenter mentions Jack Ma's disappearance as an example of the government's control over the Chinese market.

🎓 Key Takeaways

• 1. Diversify your PEA portfolio with a mix of global and regional ETFs.
• 2. Prioritize low fees and consider the tracking error of ETFs.
• 3. Consider your risk tolerance and investment goals when selecting ETFs.
• 4. Be aware of the risks associated with emerging markets and specific countries.
• 5. Consider a core-satellite investment strategy for portfolio construction.

✅ Action Items (if applicable)

□ Research the ETFs mentioned based on your investment goals and risk tolerance. □ Evaluate your current PEA portfolio's diversification and consider rebalancing. □ Compare the fees and tracking errors of different ETFs within the same category.

🔍 Conclusion

The video provides a helpful guide to selecting ETFs for a PEA, offering valuable information on diversification, fees, and performance. By considering the factors and insights presented, viewers can make more informed investment decisions to build a well-diversified and potentially rewarding portfolio.