What is this placement on the stock market that is a hit with young French people

They do not know the mysteries of Wall Street. They never met traders. And yet, eyes riveted on the curves, they invest in the stock market. They are young, majority of men and sometimes still studying.

In a few clicks, thanks to applications, their crowns slide into the large machine on the market. The invisible hand aspires more and more. What they hope? With ETFs and other actions, Create comfortable capital For the years to come. Almost magic. They no longer rely on the pension system which “implodes” and hope, why not, become millionaires. Decryption.

New COVVI-19 investors

“It was in 2020”, traces Ambroise* for actu.fr. At the time, he was 27 years old and studied in the field of the pharmaceutical industry. And as a plethora of young people, the COVVI-19 health crisis freezes its future professional. “I had no prospects and I was blocked at my house in my narrow Parisian apartment. »»

At the same time, on television, on social networks and on the radio, the student intends to speak financial market exploits. “After a drastic fall in valuations and then a spectacular rise, the shareholders put their pockets full,” he recalls.

“And why not me?” On the advice of his brother, holder of life insurance, the young man puts 2,000 euros on the table. This money, Ambroise Place it in ETF As part of a PEA, a equity savings plan. A regulated savings product that allows you to invest in the scholarship.

In recent years, this course seems quite classic in France. Like many, Ambroise had the twenty during the health crisis. And, thanks to applications, he has become an investor. “People had free time, they were interested in it,” observes for actu.frthe Financial Markets Authority (AMF).

I want to create a retreat, to have solid capital for the future.

What is the ETF? The favorite placement of young people

ETF is a whole world. Today, 15 % of French people hold it And their number has quadrupled in five years, between 2019 and 2024, notes the AMF in its barometer. Exchange Traded Funds, sometimes named trackers Or listed funds, it is a new type of instrument acclaimed by the youngest.

In summary, they allow Follow the evolution of a stock market indexupwards, as down. Instead of finding companies nuggets and hoping that their valuations are climbing, the ETF is made up of a large basket of actions from sectors and various countries. In 2024, these shares weighed more than $ 14,000 billion, i.e. 13,587 billion eurosworldwide. Almost the GDP of China.

In 2020 therefore, Ambroise* chose to place his agent on ETFs that reply the MSCI World and the S&P 500. The MSCI World for Morgan Stanley Capital International World, brings together the 1,546 best companies in so-called “developed” countries, including the United States (64.43 %), Japan (8.56 %) or France (3 , 51 %) in various sectors. Over 10 years, between 2011 and 2021, its annualized performance was + 13.32 %.

The S&P 500 (Standard & Poor's), the star of the ETF, brings together the 500 largest companies listed on the United States scholarships like Apple, Nvidia, Microsoft or Amazon. The advantage is that these ETFs are enthroned. The day a company present in the S&P 500 goes bankrupt, the 501ᵉ largest company in the United States will automatically replace it.

The limits of this instrument

On the risk of these stock market instruments, “the objective of managing an ETF is to expose themselves to an index, not to beat it. If the index drops, your portfolio drops in the same proportions, or even more strongly if you have chosen leverage. You can therefore lose all or part of the invested capital, ”says the AMF.

“The least safe are the ETFs that reproduce the courses of cryptocurrencies,” argues Olivier Lendrevie, founder of Moneysmart, specialist in financial markets withactu.fr. These areas young people “love” them, while they are very volatile.

After the Fall 2008 subprimes crisis, for example, the MSCI World course had taken over five years to recover. The S&P 500 had dropped by 60 % notes the Banque de France. Panic of the markets had precipitated companies and savers in the wall.

According to the HEC teacher, “It all depends on your investment horizon”before adding: “If you place your money over a period of ten years, the ETFs have less risks. “Like the AMF, Olivier Lendrevie advises to have a” security mattress “, a savings placed on booklets available in the event of unforeseen events.

Another risk of this very popular placement: concentration. “The ETFs contribute to the success of the magnificent seven (Editor's note: Nvidia, Meta, Tesla, Amazon, Alphabet, Microsoft and Apple), thanks to the gigantic sums of ETF. Bubbles created by algorithms, which may, may be bursting. “No one has crystal balls. »»

Why such a success?

The enthusiasm for ETF, the financial market authority analyzed it well. “Since 2020 and the COVVI-19 crisis, more than a million new investors have arrived in the financial markets that appeared in France,” observes France Mayer, director of relations with savers and their protection, for actu.fr.

“An OECD study for the AMF shows that these new investors, younger, are half invested in cryptocurrency (like Bitcoin, editor's note),” says the director. In the first half of 2023, 38.5 % of new investors were under 35 years oldagainst 28 % in 2020 and 12 % in 2019.

This is Olivier's profile. He lives with his parents. At 19, this BTS commercial student in Western Paris, has been investing since his majority on the stock market via… ETF. With his fixed salary alternating about approximately 1 000 euros“A quarter goes into the market, because it is sure as investment,” he confides in actu.fr.

What to do with this money? Why invest? “I don't really have a project for the moment,” he admits, “but I no longer believe in the French system, he implodes, it's a bit 'the ETF instead of my retirement'” . Capital for later, placed on “Very long term” To “avoid inflation”, without being afraid of “losing everything” and finally “to take shelter”.

This sum, I forget it for the moment, we will see later.

“Thanks to the applications of the neocuriers such as Trade Republic, Degiro or Etoro, it has become so simple to invest with a much more supplied ETF catalog than in conventional banks”, argues Olivier Lendrevie for actu.fr. An ease that pushes young people to be interested in it.

Same story for Clément, who started him at the time of COVID-19. “I was 22 years old and I quickly opened a PEA,” he says. After a few “errors”, the 26 -year -old, who has worked for two years in aeronautical engineering, has invests in ETFs every month. “It's better than actions and it's simple. »»

“The generation of my parents is not at all a fan of the scholarship,” he notes. “At the beginning, I was afraid, I was losing money, now, I accepted volatilityit is an investment in the very long term. »»

These are the main reasons that push these young people to try the scholarship: beat inflation, create an income for retirement and surpass the yield of the famous booklets. Like Livret A, preferred placement of the French, with more than 414 billion euros accumulated In 2024, according to the Banque de France. And whose rate fell to 2.4 % in 2025. Conversely, it has reached around 10 % for MSCI World since its creation.

The growing role of influencers and social networks

How to explain the phenomenon? The answer comes from social networks. “These new investors are more information on social networks and with influencers,” says France Mayer for actu.fr. After the COVVI-19 crisis, the finance gendarme identified this effective multiplication of its finance advisers, “A real ecosystem”.

This is how Olivier, Gabin or Ambroise* started. By videos on Youtube, word of mouth or on social networks. They find themselves today on the discussion forums of Finarya famous platform used by around 350,000 investors.

This site allows users to manage their wealth, to invest in cryptocurrencies or to follow The evolution of their booklets. Thanks to videos, its co-founder, Mounir Laggoune exhibits the merits of investing in ETF. Like Mathieu Louvet of the Investing Chain or Xavier Delmas of Bourse Zone. On the Internet, there is something for everyone.

Faced with this new world of content creators, the AMF has combined with the Professional Advertising Regulatory Authority (ARPP). “The objective? Intended for influencers in finance in order to help the professionalization of commercial influence, an activity now supervised by the law of June 9, 2023 ”, argues to actu.frFrance Mayer. In finethe financial market regulator wishes to protect the Risk investment neophyte.

Only 55 Influencers classified finance would have obtained certification, the AMF advances.

“Before investing, multiply and cross your sources of information. Also get closer to your usual financial intermediary who can verify that the investment is adapted to your needs and your profile, ”advises the AMF by the voice of its director. The French independent public authority advises consulting its website to “find in particular educational information on financial investments as well as tools that allow you to take stock of its savings”. And so, understand where to invest and in what horizon.

“Make sure that the risk taking is in line with your project, your investment horizon and your ability to lose part of this savings (do not invest if you are not ready to lose all or part of your capital ) ”Recalls the AMF.

*The first name has been changed.

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