Why invest in ETFs through life insurance?
ETFs (Exchange Traded Funds), or trackers, are listed index funds that replicate the performance of a market index (MSCI World, S&P 500, CAC 40...) with very low internal fees, generally between 0.05 % and 0.30 % per year. Within life insurance, they allow you to invest in global equity markets at low cost while benefiting from the policy's tax-advantaged wrapper.
Historically, life insurance policies primarily offered OPCVM (actively managed funds) with internal fees of 1.5 % to 2.5 % per year. The arrival of ETFs in online policies has revolutionised the offering: for an equivalent investment, internal fees are divided by 5 to 10.
The financial impact is enormous. On 100,000 euros invested over 20 years at a gross return of 8 %, the difference between an active fund at 2 % internal fees and an ETF at 0.20 % internal fees represents over 70,000 euros in additional final capital. That's the magic of compounding fees working in reverse.
The best policies for investing in ETFs
Not all life insurance policies offer ETFs, and those that do don't all offer the same range. Here are the most competitive policies in 2026 for index investing.
| Criterion | Linxea Spirit 2 | Lucya Cardif | Placement-direct Vie | Linxea Avenir 2 | Boursorama Vie |
|---|---|---|---|---|---|
| Insurer | Spirica | BNP Paribas Cardif | Swiss Life | Suravenir | Generali |
| Unit-linked management fees | 0.50 % | 0.50 % | 0.50 % | 0.60 % | 0.75 % |
| Total unit-linked funds | ~700 | ~2,300 | ~1,000 | ~600 | ~400 |
| Number of ETFs | ~40 | ~70 | ~50 | ~60 | ~30 |
| ETF issuers | Amundi, iShares, Lyxor | Amundi, iShares, Vanguard, Lyxor, BNP Easy | Amundi, iShares, Lyxor, Vanguard | Amundi, Lyxor | Amundi, Lyxor, iShares |
| ETF trading fees | 0 EUR | 0 EUR | 0 EUR | 0 EUR | 0 EUR |
| Online switching | Free | Free | Free | Free | Free |
| Minimum investment | 500 EUR | 500 EUR | 500 EUR | 100 EUR | 300 EUR |
| Entry fees | 0 % | 0 % | 0 % | 0 % | 0 % |
Lucya Cardif: the widest ETF range
With approximately 2,300 unit-linked funds including around seventy ETFs, Lucya Cardif offers the most extensive range on the market. You'll find ETFs from Amundi, iShares (BlackRock), Vanguard, BNP Paribas Easy, and Lyxor. This breadth enables you to build highly diversified portfolios with sector, geographical, and thematic ETFs.
Strengths:
- Vanguard ETFs available, a rarity in French life insurance
- Bond ETFs available (Aggregate Bond, Government Bond)
- SRI/ESG ETFs (MSCI World SRI, MSCI Europe SRI)
- Unit-linked management fees of only 0.50 %
Linxea Spirit 2: the best value for money
Linxea Spirit 2 offers approximately forty ETFs covering the main geographical zones and asset classes. What sets it apart is the combination of 0.50 % unit-linked management fees and a well-curated ETF selection, including the essential Amundi MSCI World, Amundi S&P 500, and iShares MSCI EM.
Strengths:
- Unit-linked management fees among the lowest (0.50 %)
- ETF range well-calibrated for a global allocation
- SCPIs and SCIs also available for diversification
- 100 % unit-linked investment possible (no mandatory euro fund minimum)
Placement-direct Vie: the SwissLife alternative
Underwritten by Swiss Life, this policy offers approximately fifty ETFs with 0.50 % management fees. The availability of Vanguard ETFs and a broad iShares selection makes it a very competitive policy for index investing.
Essential ETFs in life insurance
Global equity ETFs
| ETF | Index tracked | Annual fees (TER) | Assets | 2024 performance |
|---|---|---|---|---|
| Amundi MSCI World (CW8) | MSCI World (1,500 stocks, 23 countries) | 0.38 % | 5.2 Bn EUR | +25.1 % |
| Amundi MSCI World SRI (WSRI) | MSCI World SRI (400 SRI stocks) | 0.18 % | 7.8 Bn EUR | +22.6 % |
| iShares MSCI World (IWDA) | MSCI World | 0.20 % | 72 Bn USD | +25.3 % |
| Amundi MSCI ACWI | MSCI ACWI (developed + emerging markets) | 0.45 % | 1.8 Bn EUR | +23.4 % |
The Amundi MSCI World (CW8) is the most popular ETF in French life insurance. It tracks the MSCI World index, covering approximately 1,500 companies from 23 developed countries (United States, Europe, Japan, Australia...). With a TER of 0.38 %, it remains competitive even if more expensive than PEA or brokerage account versions.
The Amundi MSCI World SRI is the responsible version, filtering companies according to ESG criteria. At only 0.18 % annual fees, it is paradoxically cheaper than the standard CW8, making it an excellent choice.
Regional ETFs
| ETF | Region | Annual fees (TER) | 2024 performance |
|---|---|---|---|
| Amundi S&P 500 (500) | United States (500 large caps) | 0.15 % | +33.4 % |
| Amundi Nasdaq-100 | United States (100 tech) | 0.23 % | +28.7 % |
| Lyxor MSCI Europe | Developed Europe | 0.25 % | +8.3 % |
| Amundi CAC 40 (C40) | France (40 large caps) | 0.25 % | +2.2 % |
| iShares MSCI EM (IEMA) | Emerging markets | 0.18 % | +12.1 % |
| Amundi MSCI Japan | Japan | 0.45 % | +15.8 % |
The Amundi S&P 500 was the top-performing ETF in 2024 thanks to the outperformance of US equities and technology stocks. Its 0.15 % TER is highly competitive.
The iShares MSCI Emerging Markets provides access to emerging markets (China, India, South Korea, Taiwan, Brazil). At 0.18 % in fees, it's an essential complement for a complete global allocation.
Bond and diversified ETFs
A few policies also offer bond ETFs, useful for the defensive portion of your portfolio:
- Amundi Euro Government Bond: eurozone government bonds, TER 0.14 %
- iShares Core EUR Corporate Bond: investment-grade corporate bonds, TER 0.20 %
- Amundi Global Aggregate Bond: diversified global bonds, TER 0.10 %
Building an ETF portfolio in life insurance
Simple allocation: the 3-ETF portfolio
For the majority of investors, a 3-ETF portfolio provides excellent global diversification:
- 70 % Amundi MSCI World (CW8): portfolio core, 1,500 global stocks
- 10 % iShares MSCI EM: emerging markets for diversification
- 20 % Amundi Euro Government Bond: bond portion to reduce volatility
Weighted average internal fees: approximately 0.30 %. Added to the 0.50 % unit-linked management fees, the total annual cost is 0.80 %. That's 2 to 3 times less than a traditional active fund portfolio.
Advanced allocation: the 5-ETF portfolio
For investors seeking more granularity:
- 40 % Amundi S&P 500: exposure to US large caps
- 20 % Lyxor MSCI Europe: European equities
- 10 % Amundi MSCI Japan: Japanese equities
- 15 % iShares MSCI EM: emerging markets
- 15 % Amundi Euro Government Bond: bonds for stability
This allocation gives finer control over geographical weighting and allows adjustments based on your convictions.
The DCA approach: investing regularly
The most effective strategy for the majority of savers is DCA (Dollar Cost Averaging): investing a fixed amount every month through regular contributions. This method smooths out the purchase price over time and eliminates the risk of investing a large sum at the wrong moment.
Concrete example: Sophie, age 32, has been investing 300 euros per month into Linxea Spirit 2 for 3 years. Allocation: 80 % Amundi MSCI World, 20 % iShares MSCI EM. Capital invested: 10,800 euros. Current estimated value: approximately 13,200 euros (average performance of ~12 % per year over the period, net of unit-linked fees).
Life insurance vs PEA vs brokerage account: where to invest in ETFs?
The choice of wrapper is crucial for optimising your ETF net returns. Each wrapper has its advantages and limitations.
| Criterion | Life Insurance | PEA | Brokerage Account (CTO) |
|---|---|---|---|
| Contribution cap | None | 150,000 EUR | None |
| Wrapper management fees | 0.50-0.75 %/year | 0 % | 0 % |
| Trading fees | 0 EUR (no brokerage) | 1-5 EUR/trade | 1-10 EUR/trade |
| ETFs available | 30-70 depending on policy | PEA-eligible only | All market ETFs |
| Tax on gains | Flat tax 30 % or 24.7 % after 8 years | 17.2 % (social contributions only) after 5 years | Flat tax 30 % |
| Estate planning | 152,500 EUR allowance per beneficiary | Standard inheritance law | Standard inheritance law |
| Availability | Withdrawal at any time | Free withdrawal after 5 years | Free withdrawal at any time |
| Specific advantage | Estate tax benefit | Best capital gains tax after 5 years | Total freedom of choice |
When to prefer life insurance for ETFs?
Life insurance is the best choice in the following cases:
- Estate planning goal: the 152,500 euro allowance per beneficiary (Article 990 I of the CGI) is unbeatable. If you want to transfer significant capital, life insurance is essential.
- PEA already maxed out: if you've reached the 150,000 euro contribution cap on your PEA, life insurance is the second-best wrapper for ETFs.
- Need for diversification: in life insurance, you can combine ETFs, SCPIs, euro fund, and bonds in a single policy. The PEA is limited to European equities (even though PEA-eligible global ETFs exist).
- Estate planning: the beneficiary clause allows you to freely designate beneficiaries, outside standard inheritance rules.
When to prefer the PEA?
The PEA is fiscally superior to life insurance for a pure capital growth goal:
- After 5 years, capital gains are subject only to 17.2 % social contributions (instead of a minimum 24.7 % in life insurance after 8 years).
- No wrapper management fees: the 0.50 % annual unit-linked fees in life insurance don't exist in a PEA. Over 20 years, this fee difference has an enormous impact.
- Best starting choice for a young investor maximising capital growth.
Our recommendation: fill your PEA first (up to 150,000 euros in contributions), then switch to life insurance for additional ETF investing and estate planning. Ideally, hold both wrappers.
The real costs of ETF investing in life insurance
It's essential to fully understand the fee stacking to evaluate the true cost:
- ETF internal fees (TER): 0.05 % to 0.45 % depending on the chosen ETF
- Policy unit-linked management fees: 0.50 % to 0.75 % depending on the policy
- Annual total: 0.55 % to 1.20 % depending on the combination
Concrete comparison on 100,000 EUR invested over 20 years (8 % gross return):
- ETFs in life insurance (Linxea Spirit 2): TER 0.20 % + unit-linked fees 0.50 % = 0.70 % total. Final capital: approximately 388,000 euros.
- ETFs in PEA: TER 0.20 % + negligible brokerage = 0.20 % total. Final capital: approximately 444,000 euros.
- Active fund in traditional life insurance: internal fees 2 % + unit-linked fees 0.75 % = 2.75 % total. Final capital: approximately 267,000 euros.
The gap between ETFs in life insurance (388,000 euros) and a traditional active fund (267,000 euros) is 121,000 euros. That's why ETFs in life insurance are a revolution.
Mistakes to avoid with ETFs in life insurance
Multiplying ETFs unnecessarily
A portfolio of 2-3 well-chosen ETFs is sufficient for optimal global diversification. Multiplying lines with sector or thematic ETFs (AI, blockchain, water, etc.) complicates management without necessarily improving returns. The Amundi MSCI World already contains the world's largest technology companies.
Ignoring tracking error
Tracking error measures the performance gap between the ETF and its benchmark index. An ETF with high tracking error poorly replicates its index. Favour large, high-capitalisation ETFs with low tracking error, such as Amundi's CW8 or iShares' IWDA.
Forgetting to rebalance
If your target allocation is 70 % equities / 30 % bonds, equity market gains can shift your allocation to 85 % / 15 % after a few years. An annual rebalance through switching (free on most online policies) maintains your risk profile.
Choosing the wrong policy
Unit-linked management fees vary dramatically between policies. A 0.75 % fee policy instead of 0.50 % costs you 0.25 percentage points of return per year. On 100,000 euros over 20 years, this difference represents approximately 12,000 euros less in capital.
Conclusion: our recommendations for 2026
For investing in ETFs through life insurance in 2026:
- Best overall policy: Lucya Cardif (widest ETF range, 0.50 % fees, Vanguard ETFs available)
- Best value for money: Linxea Spirit 2 (0.50 % fees, well-calibrated ETF range, complementary SCPIs)
- Essential ETF: Amundi MSCI World (CW8) or Amundi MSCI World SRI (WSRI) as the portfolio core
- Optimal strategy: fill your PEA with ETFs first, then use life insurance to go beyond 150,000 euros and for estate planning
The total cost of an ETF portfolio in life insurance (0.70 % to 0.95 % per year) remains very competitive compared to traditional active funds (2.5 % to 3.5 % per year) and represents a major breakthrough for French savers.