The Colosseum in Rome, as a AI sees it. In addition to structural miracles, Italy also has an stock market miracle. (Ki photo: Freepik, Wirestock)
While everyone is staring at the tech giants of the USA, a completely different Börsenwunder runs south of the Alps. Italy Leading index ftse mib not only leaves the euro stoxx behind-but also surpasses the S&P 500. Why the Milan stock exchange has become a return-hot spot-and as investors are there via ETF or funds.
Milan instead of Manhattan: The quiet miracle of the Mediterranean
Nasdaq, Nvidia, KI – these are the keywords that electrify the investor world. But if you look a little further south, you will discover a quiet stock market that surprises even experienced investors: Italy’s stock market is one of the absolute outperformers of the past few years – almost unnoticed.
The FTSE MIB, the exchange barometer of the stock exchange in Milan, has increased almost 14 percent since the beginning of the year – more than the Euro Stoxx 50, more than the Dow Jones. And even over the age of 5, Italy plays at the top: more than 160 percent plus, while the much celebrated S&P 500 “only” added around 105 percent – despite Apple, Amazon and Alphabet.
The FTSE MIB runs – and nobody looks there
While Europe as a whole is currently celebrating a comeback, Italy is pushing forward. The performance lead over the Euro Stoxx 50 is growing, also because a lot has changed: government debt? No longer the main topic. Political instability? Currently surprisingly little of it to feel.
Prime Minister Giorgia Meloni presents herself internationally as a reliable interlocutor. Her youngest appearance in front of the White House – including the shoulder tapper by Donald Trump – showed: Italy is looking for proximity to the USA. No coincidence, because many Italian export hits go through the Atlantic: Ferrari, De’longhi, Campari or Prada sell better than ever in the USA.
Luxury, consumption, industry: where Italy’s stock market treasures are
The rally of the FTSE MIB is not a broad housesee, but a selective catch -up. Some industries run hot, others are still bargains. Examples?
- LeonardoItaly’s armaments giant, has increased over 120 percent over the year – a course fireworks based on increasing defense spending.
- Buzzi Unicema cement manufacturer, benefits from the global infrastructure trend.
- Telecom Italia Experience a renaissance.
But the true treasure of Italy is in the consumption and luxury segment. Many of these shares are far from their all -time highs – despite stable business.
- CampariProducer of Aperol, Grand Marnier & Co., noted over 40 percent below the 2023 high. And that with a further growing sales.
- De’longhiWorld market leader for espresso machines, in the meantime lost a third of his value – Course-profit ratio (KGV) and Dividend yield are now tempting.
- Prada wants to forge a luxury heavyweight together with Versace-an Italian answer to the French group LVMH.
And then there is Ferrari: The luxury sports car manufacturer achieves a quarter of its sales in the United States. Even if Trump should impose tariffs – if you pay 300,000 euros for a car, you will hardly bother a 25 percent surcharge.
FTSE MIB: underestimated index with substance
The Ftse mib Filts the 40 largest and most liquid -liquid companies in Italy. Banks such as Unicredit or Intesa Sanpaolo, insurers such as Generali, Energy Giesen such as ENI or Enel ensure stability. There are also industrial and consumer titles- a mix that plays its advantages in times of geopolitical uncertainty.
According to Ishares, the price-profit ratio (KGV) is currently only 11.4-a clear evaluation discount compared to US markets, where KGVs have long been everyday life beyond the 20.
Italy via ETF at a flat rate
If you want to get the stock market miracle from the south into the custody account, you don’t have to collect Ferrari, Prada & Co. individually – 2 ETFs are sufficient:
- The Ishares Ftse Mib Ucits ETF (IE00B53L4x51) relies on the complete MIB elite, physically depicts the index and automatically creates yields. Cost: Fair 0.33 percent per year.
- If you prefer to go to the depot regularly, use the distribution variant: the Xtrackers ftse mib Ucits ETF 1D (LU0274212538) comes with 0.30 percent fees and releases once a year.
Both products are the quick ticket to Milan – for everyone who wants to bet on Bella Borsa.
Also convincing actively managed funds:
The IMGP Italian Opportunities Fund (Isin: LU0069164738) shows how it works – and delivers. In the past 5 years, the fund has a full 125 percent Return. Have been around since the beginning of the year alone 15 percent plus on the clock.
Viva Italia-Bottom-up instead of gut feeling
The fund does not rely on hot stories, but on fundamental data. The managers – Alfredo Piacentini and Sandro Occhilupo from the Swiss Edelschmiede Decalia – siege the Italian stock exchange for real quality companies. Bottom-upwithout benchmark printing. We are looking for what grows, is rated cheaply and has a robust business model.
Financial titles such as Unicredit and Generali – Backbone of the Italian economy. But also Ferrari,, Campari & Co. are thick in the race. Everything that stands for “Made in Italy” finds its way into the portfolio. The fund invests at least two thirds directly in Italian stocks – and thus remains loyal to its line even in stormy stock market times.
Conclusion: between pasta and performance
Italy has long been more than pizza, pope and the permanent political crisis. The stock market is robust, innovative and, above all, cheap. The economic reality has decoupled from the old Italy image. If you recognize this, you will find an exciting addition to the depot here. The Meloni exchange-it has more style than many think.
Disclaimer:
No investment advice. No call to buy or sell securities.