Dreaming of investing in the world’s largest companies while enjoying unbeatable tax advantages? Good news: the French PEA (Plan d’Épargne en Actions) is no longer limited to European stocks! Thanks to options like the iShares MSCI World Swap PEA UCITS ETF, you can now combine global diversification with tax efficiency in a straightforward and effective product. Discover why this ETF is a game-changer for your portfolio.lle.
The PEA: A Must-Have Investment Tool for Savers
Tax Advantages That Boost Your Gains
The PEA is an investment solution tailored for French taxpayers, offering simplicity and unmatched tax benefits.
Did you know that after holding your PEA for 5 years, your capital gains are exempt from income tax? Yes, it’s that powerful: only social contributions (17.2%) remain payable.
This unique tax advantage in Europe makes the PEA particularly appealing for long-term investors. Imagine the compounding growth over a decade with reduced taxes fueling your returns!
Simple Rules to Maximize Your Investments
To make the most of your PEA, keep these rules in mind:
Contribution limit: €150,000 for a standard PEA.
Investment scope: European stocks and eligible ETFs.
Withdrawals before 5 years: These close the PEA (with exceptions). After 5 years, you have full flexibility while retaining tax advantages.
Previously, the PEA’s main drawback was its limitation to Europe, a market attractive yet not the driver of global growth. Fortunately, World ETFs eligible for the PEA have changed the game.
ETFs: An Accessible Revolution
Why All the Buzz Around ETFs?
ETFs (Exchange-Traded Funds) have become the stars of investing. Why? They let anyone invest like a pro. With an ETF, you replicate the performance of an index (e.g., CAC 40 or MSCI World) with a single transaction.
The result: immediate diversification, low fees, and unparalleled simplicity.
Three Reasons to Love ETFs
Unbeatable Fees: Annual management fees often under 0.5%, much lower than traditional funds.
Complete Accessibility: No need to be an expert—an ETF gives you exposure to hundreds of companies at once.
Guaranteed Liquidity: Listed on stock exchanges, ETFs can be bought and sold in real-time like a stock.
The iShares MSCI World Swap PEA UCITS ETF: Your PEA’s Best Friend
A Product from BlackRock, the Global Leader
The iShares MSCI World Swap PEA UCITS ETF is designed by BlackRock, the world’s largest asset manager with over $10.5 trillion under management. BlackRock provides robust, reliable, and high-performing solutions for investors at all levels.
This ETF replicates the MSCI World Index, which includes the largest global companies (e.g., Apple, Microsoft, Nestlé, Toyota) across 23 developed markets. With this tool, you invest globally without leaving the tax-advantaged framework of the PEA.
Key Features of this ETF
Management fees: 0.25%.
Type: Synthetic (via swaps) for maximum tax optimization.
Performance: Accurately tracks the MSCI World Index, offering exposure to global leaders.
Moreover, its synthetic structure eliminates double taxation on foreign dividends a major advantage for maximizing net returns.
PEA vs. Life Insurance vs. Ordinary Brokerage Accounts
PEA: Unbeatable for World ETFs
Tax Advantage: Income tax exemption after 5 years.
Low Costs: No entry or management fees imposed by the PEA framework.
Broad Selection: With ETFs like the iShares MSCI World Swap, the PEA allows global investments.
Life Insurance: Appealing but Not Ideal for World ETFs
While life insurance offers tax benefits after 8 years and simplified wealth transfer, it falls short for ETFs:
Higher Fees: Annual management fees often exceed 1%.
Limited ETF Choices: Few contracts offer competitive World ETFs like those in a PEA.
Tax on Withdrawals: Gains are taxed from the first withdrawal, unlike the PEA.
Ordinary Brokerage Account (CTO): Flexible but Tax-Heavy
For investors exceeding the PEA’s limit, the CTO is a popular choice. However, its tax implications are significant:
Flat Tax (30%): Dividends and capital gains are taxed annually.
No Investment Cap: Suitable for large sums but less effective for maximizing net returns.
Comparing PEA-Eligible World ETFs
1. iShares MSCI World Swap PEA UCITS ETF
Promoter: iShares (BlackRock)
ISIN: IE0002XZSHO1
Management Fees: 0.25%
Distribution: Accumulating (dividends reinvested into the fund).
Fund Size: €292.72 million (launched March 2024).
Replication Method: Synthetic.
Net Asset Value: ~€5.
2. Amundi MSCI World UCITS ETF - EUR (C)
Promoter: Amundi ETF
ISIN: LU1681043599
Management Fees: 0.38%
Distribution: Accumulating (dividends reinvested into the fund).
Fund Size: €4.88 billion.
Replication Method: Synthetic.
Net Asset Value: ~€572.
3. Amundi MSCI World UCITS ETF - EUR (D)
Promoter: Amundi ETF
ISIN: LU2655993207
Management Fees: 0.38%
Distribution: Distributing (dividends paid out to investors).
Fund Size: €4.88 billion.
Replication Method: Synthetic.
Net Asset Value: ~€34.
Other Notable PEA-Eligible ETFs
Lyxor PEA S&P 500 UCITS ETF
ISIN: FR0011871128
Focus: Tracks the S&P 500 index, covering the 500 largest U.S. companies.
Lyxor PEA NASDAQ-100 ETF
ISIN: FR0011871110
Focus: Tracks the Nasdaq 100 index, highlighting the 100 largest U.S. tech companies.
BNP Paribas Easy S&P 500 ETF UCITS
ISIN: FR0011550185
Focus: Also tracks the S&P 500 index.
Amundi PEA MSCI Emerging Markets ESG Leaders ETF UCITS
ISIN: FR0013412020
Focus: Tracks the performance of 450 leading companies from BRICS+ countries with an ESG-oriented approach.
Conclusion: Why Wait?
Investing in the iShares MSCI World Swap PEA UCITS ETF gives you access to the world’s largest companies while enjoying the unbeatable tax benefits of the PEA. You gain global diversification, reduced fees, and an optimized tax framework—advantages unmatched by life insurance or a CTO.
Ready to take your investments to the next level? Don’t miss this unique opportunity to diversify your portfolio like a pro while maximizing your net returns through the PEA.
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