The CACM ETF (Lyxor), created in 05/2011 is listed in Euro on Euronext Paris and replicates the CAC Mid 60 Gross Total Return index which is composed of 60 French mid-cap companies ranked among the 61st and 120th most traded stocks on Euronext Paris.
The fee of the CACM ETF is 0.5% and the AUM is € 86M. Replication is indirect (via swap) and there is a dividend distribution policy.
Alternative ETFS: EWQ (iShares)
Index & components
CACMID60 is made up of "big mid-caps", of which the three most represented sectors are industry (25.7%), Finance (12.7% and health (17%).
The first 10 lines represent 34% of the capitalization and are composed of emblematic growth stocks such as Eurofins Scientific, Rubis or Orpea but also leading companies in their sectors such as Ipsen or Getlink. Unlike the CAC40, the index does not include banks or major oil companies.
The CACMID 60 index is composed of companies that are more dependent on the domestic market than the world leaders in cac40 but are already very international and very structured. Above all, their growth potential appears on average to be much greater than the large groups of the CAC40, since they often evolve in still fragmented and growing markets (health, technology, consumer goods), but also cyclical for a significant part of the index (industry and materials account for 25% of capitalization), which should continue to benefit from the improvement in the French economy.
One of the characteristics of these companies, is that they are more easily targets than the CAC40 groups, because of a lower market capitalization, without the capital being on average more controlled. The increase in M & A transactions should therefore benefit the index in the coming months. The medium-term potential of the index is high, especially as the valuation looks rather undemanding after the correction and because of the growth potential.
Latest developments
The CACMid60 rose by + 25.1% in 2017, a performance well above the CAC40 (+ 9.3%), as was the case in 2016 (+ 7.9% vs. + 4.9%), however, the index fell by 11.8% since the beginning of 2018, underperforming the CAC40 (-6.2%) for the first time in a long time.
The MIDCAC60 index is composed of a wide variety of sectors and technology is just one component among others. Many industrial / cyclical companies have suffered during the correction of the last months despite decent corporate results and especially as the mid caps are by natures less exposed than the large groups to the trade war. Exposure to the Euro / USD parity is also lower than for the CAC40 companies, but remains an important factor especially for the technology and industry sectors.
On the other hand, Brexit and the evolution of the Pound Sterling / Euro are more important subjects for the French midcaps, which are often rather significantly exposed in the United Kingdom.
