French investors compare active and passive ETFs for PEA accounts

Active exchange‑traded funds (ETFs) are managed by teams that try to outperform a benchmark and therefore charge higher fees, while passive ETFs simply replicate an index and typically cost between 0.10 % and 0.30 % per year. To be eligible for a Plan d'Épargne en Actions (PEA), an ETF must invest at least 75 % of its assets in equities of companies headquartered in the European Union or the European Economic Area.

According to the SPIVA Europe report, 97.02 % of European equity funds underperformed their reference index over a ten‑year period after fees. Consequently, investors are advised to match the ETF choice to their risk tolerance, investment horizon and cost considerations, often using a core‑satellite approach: a core of low‑cost passive ETFs for long‑term exposure and a limited selection of active ETFs for specialized or niche segments.