Explore the potential of European equity ETFs as portfolio building blocks
Marketing Communication
Introducing the Amundi STOXX Europe Defense UCITS ETF
As Europe strives for greater strategic autonomy, massive investment is set to be channelled into the European defence sector. To help investors access this key opportunity, we have launched our European defence ETF. Discover the ETF here
‘An open-air museum.’1 This is how some critics have described Europe in derisory social media posts in recent years. ‘The continent has fallen behind the US,’1 they would say. ‘European companies lack innovative spirit, they would add, and its stock markets are no match for the US1. This, of course, was an easy criticism to level at Europe amid record highs in the S&P 5002 and a strong US dollar.
Even if Europe is bedevilled by various structural issues, the ‘open-air museum’ criticism belies various strengths in Europe – and in its equity markets. Underscoring this is market performance in the first quarter of 2025. The period marked a significant shift as European equity asset gathering exceeded that of US equity strategies3 in the UCITS ETF market for the first time in years, reversing a trend of ‘Europe the laggard’4 that has lingered since the financial crisis.
For investors looking to explore potential options from the continent, a pan-European index includes the best that Europe has to offer across multiple sectors – especially compared to benchmark US indices that are more heavily tilted towards technology.
Investors5 could also consider Europe’s benchmark indices – such as the FTSE 1006, CAC 405, DAX5, and FTSE MIB5 – as a means to access some of Europe’s biggest and most successful7 companies. In addition, investors could consider opportunities that capture potential sector-specific growth2 opportunities – such as European defence – or strategies focused on smaller companies.
A pan-European index includes the best that Europe has to offer across multiple sectors
For investors looking to increase their investments in European equities, ETFs offer ample choice. An ETF invests in a group of underlying assets that tracks the performance of an index. And because you can hold as many ETFs as you want, they are a great way to diversify8.Amundi ETF offers a comprehensive catalogue of European-focused equity ETFs that could help you to build your portfolio.
Explore our full range of European equity ETFs
The STOXX Europe 600 index offers investors potential diversification3 because, as it says on the tin, it features 600 stocks across multiple countries and sectors. One noteworthy aspect of this index is that its sector breakdown is more evenly distributed with lower concentration risk1 versus the S&P 500 index, for example, which experienced outflows in the first quarter of 2025 due to a sell-off in tech stocks9.
Europe is also home to a number of globally recognisable listed companies across sectors such as banking, energy, industrial cyclicals, premium consumer discretionary / luxury and technology. The scale and sweep of Europe’s benchmark index help to mitigate the risk associated with any particular country or industry1. In volatile times, a comprehensive index like this could have the potential to provide a portfolio with more stability. And in periods of calm, exposure to 600 of Europe’s leading companies could potentially offer steady growth2.
Beyond diversification10, there are several other factors to keep in mind when considering European equities.
Many listed companies listed in Europe have a global footprint. Take pharmaceutical giant Roche, for example. More than 80% of the Swiss-based company’s pharma sales were outside of Europe in 202411. For German car-maker BMW, almost two thirds of total units sold in 2024 were in international markets12. Meanwhile, France-based LVMH Group’s home market contributed only 8% of total revenues in 202413.
This highlights how European companies are not always dependent on the economic performance of the country in which they are based. However, it is worth noting that global trade is facing a challenging period ahead due to US-imposed tariffs and potential reciprocal measures from impacted countries across the world.
Another potential advantage of European equities is their generally higher dividend payout ratios compared to US stocks.
For instance, the STOXX Europe 600 index offers an estimated dividend yield of 3.1%, significantly higher than the 1.3% yield of the S&P 500 index14. This could make European stocks particularly appealing for income-seeking investors2.
For these reasons, European equity ETFs could be used as building blocks in a well-balanced investment portfolio.
Source: Stoxx, data as at 28 February 2025
Source: S&P Global, data as at 28 February 2025
1 Source: X, formerly Twitter, post from 10 July 20242 Source: S&P 500 hits record high with boost from Netflix results, AI investment plan, Reuters – 22 January 20253 Past performance is not a reliable indicator of future performance4 Source: European stocks lag US by record margin as ‘Trump trade’ bites, Financial Times – 17 November 20245 Investment involves risks. For more information, please refer to the Risk section below6 Europe’s benchmark indices include the UK’s FTSE 100, France’s CAC 40, Germany’s DAX, and Italy’s FTSE MIB7 Past performance is not a reliable indicator of future performance8 Diversification does not guarantee a profit or protect against a loss. However, a diversified portfolio could help to spread risk across different asset classes, sectors, and geographic regions9 Source: S&P Global, data as at 28 February 202510 Source: Company disclosures. Data as at 31 December 202411 Source: Roche 2024 Investor Presentation, slide 40. Data as at 30 January 202512 Source: BMW 2024 Investor Presentation, slide 47. Data as at March 202513 Source: Statista, data as at January 202514 Source: Amundi, Bloomberg as at 28 February 202515 Source: STOXX, data as at 28 February 202516, 19 Source: FTSE Russell, data as at 28 February 202517 Source: Euronext, data as at 2 January 202518 Source: STOXX, data as at 28 February 202520 Source: STOXX, data as at 14 March 2025
STOXX Europe 600Drawn from 17 European countries across 11 industries and a range of market capitalisations, the STOXX Europe 600 stands as a potential diversifier3 for your portfolio. It has a substantial market capitalisation of €14.2 trillion15 and geographical weighting comes from the UK, which makes up 23.5% of the total, followed by France at 17.2%, Switzerland at 14.5% and Germany at 14%
What is Market Capitalisation?Often referred to as market cap, this a financial metric that represents the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the total number of shares. An index market cap includes the total capitalisation of its constituents.
FTSE 100This index includes the 100 largest companies listed on the London Stock Exchange. With a market cap of £2.17 trillion16, or €2.59 trillion, it offers access to established companies with successful business models, large capital structures and reliable income streams2. Many of them pay regular dividends. Banks, health care, industrials and energy are the leading sectors.
CAC 40The French benchmark index tracks the performance of France’s 40 largest companies, including multinationals like luxury goods company LVMH. The CAC 40 has a market cap of €1.67 trillion17. Consumer goods make up around a quarter of the total index but it also includes significant contributions from health care companies and electronics-makers.
DAX IndicesThe DAX is Germany’s benchmark index with a market cap of €1.92 trillion18. Industrials, tech, insurance, telecommunications and automotive are the top five sectors. Small and medium-sized companies (SMEs) are the backbone of Europe’s economy, and over 99% of German companies are classed as SMEs. For investors seeking growth stocks, SMEs could fit the bill, as they are often undervalued compared with their large-cap peers. For this purpose, smaller- and mid-cap indexes could be considered.
FTSE MibThe FTSE MIB holds 40 of the most liquid stocks listed on the Borsa Italiana. Representing 11 key industries – from banks to carmakers – it covers more than 80% of Italy’s market capitalisation and has a market cap of €571.8 billion19.
Euro STOXX BanksComposed of 28 of the eurozone’s major banks, this index offers investors access to one of Europe’s major sectors. Financials were one of the best-performing sectors in European equities in 20242.
STOXX Europe 600 IndustrialsThis index comprises 134 of Europe’s listed industrial companies. France, Germany and the UK account for more than 60% of the overall index weight with smaller contributions from Switzerland, Sweden and others.
STOXX Europe DefenceWith US security support no longer guaranteed, Europe is scrambling to repair decades of chronic underinvestment into its defensive capabilities. Amid this backdrop, the Stoxx Europe Total Market Defense Capped Index is designed to capture momentum from aerospace and defense companies that have proven revenue in defence activities. French companies constitute around one-third of the index, followed by Germany and the UK at about a quarter apiece20.
Product name
ISIN code
Management fees*
Amundi Stoxx Europe 600 UCITS ETF Acc
LU0908500753
0.07%
Amundi FTSE 100 UCITS ETF Acc
LU1650492173
Amundi CAC 40 UCITS ETF Acc
FR0013380607
0.25%
Amundi DAX UCITS ETF Dist
LU2611732046
0.08%
Amundi SDAX UCITS ETF Dist
LU2611732475
0.70%
Amundi Stoxx Europe Defense UCITS ETF Acc
LU3038520774
0.35%
Amundi Euro Stoxx Banks UCITS ETF Acc
LU1829219390
0.30%
Amundi STOXX Europe 600 Industrials UCITS ETF Acc
LU1834987890
* Management fees refer to the management fees and other administrative or operating costs of the fund. For more information about all the costs of investing in the fund, please refer to its Key Information Document (KID).
Capital at risk. Investing in funds entails risk, most notably the risk of capital loss. The value of an investment is subject to market fluctuation and may decrease or increase as a consequence. As a result, fund subscribers may lose part or all of their initial investment.
