As World Investor Week continues, we explore one of the most accessible tools for first-time investors: exchange-traded funds (ETFs).
This article is the second in a three-part series in celebration of World Investor Week designed specifically for first-time investors, with the aim of making investing more accessible, understandable and empowering for those just beginning their investment journey.
As more individuals look for straightforward, transparent and cost-effective ways to grow their savings, exchange-traded funds (ETFs) have become a key entry point to capital markets. Combining simplicity, diversification and affordability, ETFs are helping to broaden market participation.
What is an ETF?
An ETF is an investment fund that is traded on an exchange, much like a stock. Unlike individual shares, however, ETFs typically track an index or a basket of assets, such as equities, bonds, commodities or sustainable investment themes.
By purchasing a single unit of an ETF, investors gain exposure to a diversified portfolio, helping to spread risk and reduce reliance on the performance of any single company or asset.
For example, an ETF tracking the CAC 40® allows investors to access France’s 40 largest listed companies with a single investment, offering a powerful tool for those looking to participate in broader market trends.
Transparent, rules-based and accessible
ETFs are typically designed to replicate the performance of a benchmark index. This approach, known as index-tracking or passive investing, follows a clear, transparent methodology and places the ETF manager’s focus on accurately tracking the index’s returns. The growth of passive investing through ETFs has reshaped global capital markets, bringing greater efficiency, liquidity and lower costs to investors worldwide.
ETFs aligned with investor values
Beyond traditional indices, today’s ETFs increasingly reflect thematic strategies and environmental, social and governance (ESG) criteria, empowering investors to align their portfolios with their personal values and global trends.
Whether focused on climate transition, digital innovation, healthcare breakthroughs or emerging markets, thematic and ESG ETFs allow investors to support causes and sectors they care about without sacrificing diversification or efficiency.
A gateway to financial empowerment
ETFs represent a critical entry point to capital markets, offering:
-
Simplicity in execution
-
Instant diversification
-
Transparent cost structures
-
Access to global and thematic opportunities
Whether you are just beginning your investment journey, saving for long-term goals or exploring new strategies, ETFs can provide a flexible and powerful way to participate in European capital markets.
A new era for ETFs in Europe
ETF adoption continues to accelerate across Europe, supported by regulatory developments, investor preferences and advances in market structure. In September 2025, Euronext launched Euronext ETF Europe, a fully integrated, pan-European ETF marketplace designed to reduce fragmentation and boost growth across the European ETF market.
Powered by Euronext’s Optiq® trading platform, the initiative introduces a single European order book for ETFs across Amsterdam, Milan and Paris, streamlining access and improving transparency for both retail and institutional investors.
By improving market structure and simplifying cross-border access, Euronext ETF Europe aims to serve all segments of the market, from large institutional investors to individuals making their first investment.
Learn more
To explore how ETFs and indices work and to access practical resources tailored for first-time investors, visit the Euronext Education Centre.
Follow along this week for more insights tailored to first-time and young investors.