Let’s be honest for a second. Living in France is a dream. The wine is affordable, the cheese is legendary, and the healthcare actually works. But if there is one thing that keeps Expats awake at night—besides the French bureaucracy—it’s the taxes.
Specifically, capital gains taxes.
If you are a US or UK expat used to tax-efficient wrappers like Roth IRAs or ISAs, landing in the French fiscal system feels like hitting a brick wall. You want to invest. You want exposure to the S&P 500 because, frankly, you know that’s where the growth has been for the last decade. But you don’t want to hand over 30% of your gains to the French state via the “Flat Tax.”
Enter the Plan d’Épargne en Actions (PEA). It’s the closest thing France has to a tax haven. The catch? You are legally restricted to buying European stocks.
If you think that means you are stuck investing in French banks and German car manufacturers, I have good news. You aren’t. Through a brilliant bit of financial engineering, you can legally hold US stocks inside this tax-free wrapper.
Today, we are looking at the heavyweight champion of this strategy: the Amundi PEA S&P 500. This ETF is widely considered the best option for Expats.
I have spent the last week tearing apart the latest technical data, the prospectus, and the post-merger details from late 2025 to give you the unvarnished truth. Is this the best ETF for your French portfolio? Let’s find out.
If you walk into a French bakery and ask for a bagel, they will look at you like you’re crazy. The PEA is that bakery. It only serves European pastries (EU stocks).
So, how does the Amundi PEA S&P 500 (Ticker: PSP5) actually work to serve you Apple Microsoft, NVIDA shares?
The Magic of Synthetic Replication
The fund uses a mechanism called Synthetic Replication, specifically an “Unfunded Total Return Swap.”
Here is how it works in plain English:
The Physical Basket: When you buy shares of this ETF, your money is technically used to buy a basket of boring, compliant European stocks. Think LVMH, Sanofi, BNP Paribas, or Siemens. This satisfies the French regulator (AMF) because the fund physically holds at least 75% EEA assets.
The Swap: Amundi then signs a contract (a swap) with a major investment bank (like Société Générale or Goldman Sachs). In this contract, Amundi agrees to give the bank the performance of those European stocks. In exchange, the bank agrees to pay Amundi the exact performance of the S&P 500.
The result? You hold a fund that is legally European but performs exactly like the US market.
It sounds complex, but for you, the user experience is seamless. You buy the ETF, and if the S&P 500 goes up 1%, your account goes up 1% (minus a tiny fee).
The Technical Snapshot (2025 Data)
Before we get into the strategy, let’s look at the hard facts. As of late 2025, following Amundi’s acquisition of Lyxor, the landscape has shifted. This report focuses on the historical Amundi PEA S&P 500, which is the primary choice for most investors.
Metric | Data Point |
|---|---|
Fund Name | Amundi PEA S&P 500 UCITS ETF Acc |
ISIN Code | FR0011871128 |
Ticker | PSP5 |
Benchmark | S&P 500 Net Total Return (USD) |
Total Expense Ratio (TER) | 0.15% |
Replication Method | Synthetic (Unfunded Swap) |
Currency | EUR (Unhedged) |
Dividend Policy | Accumulating (Reinvested) |
PEA Eligible? | YES (100%) |
Warning: Since the merger, Amundi now runs two PEA S&P 500 ETFs. The other one (Ticker: PSPH) is the old Lyxor fund. They are very similar, but this review focuses on PSP5 (FR0011871128).
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Why "Net Total Return" Matters More Than You Think
You might see the benchmark listed as “S&P 500 Net Total Return” and glaze over. Don’t. This detail is crucial for your wallet.
The “Net Total Return” (NTR) index tracks the S&P 500 assuming that dividends are reinvested after the deduction of withholding taxes (usually 15% for international investors).
However, here is the secret sauce of synthetic ETFs: The banks that act as counterparties often have special tax status. They can sometimes achieve better tax treatment on US dividends than the standard 15% withholding rate.
Because the Amundi fund tracks the NTR index, but the swap structure is so efficient, the fund often generates a little bit of “Tax Alpha.” This means the fund’s performance can be virtually identical to the index, effectively cancelling out the management fees.
The Performance Proof: Looking at the data from late 2025, the Amundi PEA S&P 500 generated a massive 5-year cumulative return of +105.53%.
*Hypothetical performance based on historical data. Past performance is not a guarantee of future results.
The S&P 500 Index itself did roughly +106% over the same period.
The difference is negligible. You are getting the full power of the US economy with almost zero leakage.
Amundi vs. BNP Paribas: The Battle of the Titans
If you are hanging out on French finance forums or Reddit, you will see an endless debate: Amundi vs. BNP Paribas.
The primary competitor to our subject today is the BNP Paribas Easy S&P 500 UCITS ETF (Ticker: ESEE). Which one should you choose?
Let’s look at the “Technical Data Report” comparison:
Amundi PEA S&P 500
Ticker: PSP5BNP Paribas Easy
Ticker: ESEE*Free trades available on BoursoBank (Boursomarkets) for specific issuers.
1. Fees (The Cost of Doing Business)
Amundi (PSP5): 0.15% per year.
BNP Paribas (ESEE): Ranges from 0.13% to 0.15% depending on the share class.
Verdict:While BNP is slightly cheaper, the Amundi PEA S&P 500 remains a favorite due to its massive liquidity and reliability. . On a €10,000 portfolio, that is a difference of €2 per year. That is less than the price of a Parisian espresso. It is statistically insignificant for a retail investor.
2. Assets Under Management (Size Matters)
Amundi: ~€732 Million.
BNP Paribas: ~€3.0 Billion.
Verdict: BNP is the bigger beast. A larger fund generally suggests higher liquidity and slightly better resilience against massive market shocks. However, Amundi is the largest asset manager in Europe. Neither of these funds is going bust anytime soon.
3. The Real Decision Factor
Honestly? It comes down to your broker.
Some French brokers have partnerships with specific issuers.
If you use BoursoBank (formerly Boursorama), check their “Boursomarkets” list. Often, they offer 0€ transaction fees on specific ETFs (often iShares or Amundi/Lyxor). If Amundi is free to trade and BNP costs you €5 per trade, Amundi wins.
If you are with BNP Paribas for your banking, their in-house ESEE ETF might be cheaper to access.
Bottom Line: Both are “Gold Standard” ETFs. Don’t overthink this split. If you already hold Amundi, keep it. If you are starting fresh, check which one offers lower transaction fees on your specific platform.
Why the "Acc" (Accumulating) Version is Mandatory
You will notice the fund name ends in “Acc.” This stands for Accumulating (or Capitalisation in French).
In the US or UK, you might be used to receiving quarterly dividend checks. In France, inside a PEA, you generally want to avoid that.
How it works: When companies in the S&P 500 (like Microsoft or Coca-Cola) pay dividends, the ETF receives them. Instead of sending that cash to your account, the fund manager immediately uses it to buy more stocks within the fund.
Why this is brilliant for Expats:
Compound Interest: The money is reinvested instantly. You don’t have to wait to accumulate enough cash to buy another share.
No “Cash Drag”: You don’t have idle euros sitting in your account doing nothing.
Lazy Investing: You don’t have to lift a finger. The share price of the ETF simply grows faster over time compared to the index price alone.
Given that the goal of the PEA is long-term growth (5+ years to unlock the tax benefits), an accumulating ETF is the only logical choice.
A Note on Currency Risk (Don't Panic)
This ETF is denominated in Euros, but the underlying assets (US stocks) are priced in Dollars.
This fund is Unhedged.
This means you have two engines driving your returns:
The stock market performance (S&P 500).
The EUR/USD exchange rate.
If the S&P 500 stays flat, but the US Dollar gets stronger against the Euro (e.g., going from 1.10 to 1.05), your ETF value in Euros goes UP. Conversely, if the Euro gets stronger against the Dollar, your ETF value in Euros goes DOWN, even if the stock market didn’t move.
Is this bad? Not really. As an Expat, you likely have financial ties to both currencies. Holding unhedged US assets provides a nice diversification. Historically, the USD often strengthens during global crises, which can cushion your portfolio when stocks are falling. Just be aware that the “+31.71%” return seen in 2024 includes this currency fluctuation.
How to Buy It: A Step-by-Step Guide
Ready to pull the trigger? Here is how you execute this trade without looking like a rookie.
Step 1: Get the Right Code
Do not search by name. Names are messy. Search by ISIN.
ISIN: FR0011871128
Ticker: PSP5
Step 2: Choose Your Broker
If you haven’t opened a PEA yet, avoid the traditional brick-and-mortar banks (Société Générale, BNP, LCL) unless they offer you a specific deal. Their fees are usually atrocious. Go for online brokers:
Fortuneo
BoursoBank
Bourse Direct
Step 3: Watch the Clock (Crucial!)
The ETF trades on the Paris stock exchange, but it tracks US stocks. The US market opens at 15:30 Paris time (CET).
09:00 to 15:30: The Market Makers in Paris are guessing the price based on futures. Spreads (the difference between buy and sell price) are okay, but not amazing.
15:30 to 17:25: The US market is open. Liquidity is highest. Spreads are tightest. This is the Golden Window.
Step 4: Use a Limit Order
Never use a “Market Order” (ATP). A “Limit Order” tells the broker: “I am willing to pay €35.50 and not a cent more.”
With a Market Order, if there is a sudden glitch or a momentary drop in liquidity, you could end up paying way more than the fair price. Set your limit at the current “Ask” price (or slightly above if you want it filled instantly).
The Risks You Need to Know
I would be a bad analyst if I didn’t mention the risks. This is a financial product, not a savings account.
Market Risk: If the US economy crashes, this ETF crashes. It is 100% equity.
Counterparty Risk: This is the synthetic part. If the swap bank goes bankrupt, there is a theoretical risk. However, UCITS regulations cap this exposure at 10%, and Amundi resets the swap daily to keep exposure near zero. Plus, you still own that physical basket of European stocks as collateral. It’s a very robust safety net.
Volatility: As seen in the data, the 1-year volatility is around 19.4%. That means the price bounces around a lot. This is for money you don’t need for at least 5 years.
Conclusion: Just Started
The French tax system is designed to be intimidating. It scares many Expats into leaving their cash in low-interest savings accounts (Livret A) or, worse, leaving it in a checking account.
Ultimately, the Amundi PEA S&P 500 is the key to breaking that paralysis and building wealth tax-free.
It is cheap (0.15%), it tracks the world’s best-performing index efficiently, and most importantly, it fits perfectly inside the tax-free PEA wrapper.
Is it perfect? No investment is. The currency swings can be annoying, and the synthetic structure feels weird at first. But the math is undeniable. Paying 0.15% in fees to save 12.8% in taxes is a trade I will take every single day of the week.
So, open that PEA, punch in the ISIN, and let the US economy work for you while you enjoy your croissant in Paris.
