(News Bulletin 247) – The broker Etoro conducted a survey on several European countries including France. And small French investors tend to favor a very particular sector, which is not tech.
What do small investors prioritize in their portfolios? To find out, broker Etoro conducted a survey
in several European countries including France.
First of all, the conclusions of this survey show that French individuals (74% of respondents) hold cash, such as savings accounts. This is followed by French shares (46%), domestic bonds (26%) and then foreign shares (24%).
The notable point is to look at which sectors the French hold the most in their investment portfolios.
At the top and by a wide margin are the titles of financial services companies, with a presence rate of 67% (a figure which includes both French and foreign shares in the sector, as well as other titles such as bonds) among respondents.
The financial sector above all
Banks – French banks in particular – have the advantage of having a low valuation on the stock market, which has led Jefferies to recommend buying the three listed French institutions (BNP, Société Générale, Crédit Agricole SA). The insurer Axa is, for its part, the third CAC 40 group most recommended for buying by analysts.
Real estate stocks follow (38%), followed by energy (29%), healthcare (27%) and technology (25%).
“The average French retail investor is (…) well positioned for what should be a boom period for financial services companies, with this sector being by far the most prevalent in investors’ portfolios around the world,” Antoine Fraysse-Soulier, head of market analysis at Etoro, said in a statement.
“The data also show that, despite the rapid internationalization of financial markets in recent years, investors continue to favor domestically listed stocks,” he adds.
From a more forward-looking perspective, when French individual investors are asked which stocks they intend to strengthen their positions in, the ranking is virtually unchanged, with finance and real estate still clearly in the lead.
In terms of asset classes this time, “cash is still seen as the biggest opportunity, with 22% of French investors saying they would prioritise it,” explains Etoro. “This is followed by domestically listed stocks (12%), cryptocurrencies (10%), commodities (7%), foreign stocks (6%), domestic bonds (6%), alternative investments (6%), foreign bonds (3%) and currencies/FX (3%),” the broker adds.
Methodology: Etoro conducted this survey in twelve countries on a total of 10,000 individual investors. In several countries, including France, the number of respondents rose to 1,000. The broker explains that it conducted this survey from May 15 to June 5, 2024 by the research company Opinium. “Individual investors were defined as self-managed or advised and had to hold at least one investment product including stocks, bonds, funds, investment ISAs or equivalents. They did not necessarily have to be Etoro users,” explains the broker.
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