ETF Italy: The Best ETFs to Invest in on the Italian Stock Exchange

Investing on Italy ETF Italy can be a valid prospect to have a financial product that balances your portfolio. This is possible thanks to the presence of several indexed investment funds characterized by returns that could prove interesting. Below we are going to highlight those that can be considered the most valid and all the advantages and risks.

How ETFs Work on the Italian Stock Exchange

ETFs are passively managed investment funds, with reference to an underlying asset. This means that their performance replicates a financial product such as another stock or bond fund or an index. As far as the Italian Stock Exchange is concerned, there are several Exchange Traded Funds on the FTSE MIB and with reference to other indices.

Thanks to these characteristics it will be possible to invest in the short term, operating with CFD trading on ETFs, or opening a buy or sell position. In addition, as an instrument that replicates a fund, the performance of an ETF Italy will be closely linked to the average of the prices within it and then to the basket of securities that compose it. This is a very useful factor, since it allows to determine a positive return even in moments when the market is uncertain.

Finally, on the Italian Stock Exchange there are different types of ETFs with synthetic replication, incorporating a series of specific securities, or with physical replication, and then referring to the entire basket present within the indices.

Why Invest in ETFs on the Italian Stock Exchange: Benefits and Risks

Choosing to invest in ETFs on the Italian Stock Exchange can be a valid strategy to diversify your securities portfolio. In fact, the characteristics of Exchange Traded Funds make them financial products with a number of advantages.

Firstly, volatility and risk rating are low. This is due to the presence within them of a basket of securities that can mediate the overall performance. In fact, in the event that one or more assets lose value, they can be offset by a higher return from other stocks.

Furthermore, they are passively managed funds, since the company that issues and manages the fund can only invest in financial products that are inherent to the nature of the fund itself. In this particular case, only securities of the Italian Stock Exchange will be present. Another aspect to be considered is the presence of a diversified number of ETFs with quotations accessible to all types of traders. 

As all the investments also those inherent to the best ETFs Italy have some negative aspects. It must be considered that there is always a risk, since it can be linked to the default of the company that issues the ETF. In addition to this, the capital invested is not guaranteed and some funds also provide additional costs for what concerns the management.

The Best ETFs on the Italian Stock Exchange 

What can be considered the best ETFs in Italy? It can be useful to evaluate a number of factors such as the size of the fund, the date of its introduction and the type of return. In addition, in order to be considered among the best Exchange Traded Funds you must also take into account the management costs. Below we have included those that, based on these parameters, can be considered the best.


Its ISIN code is IE00B53L4X51, identifiable with the ticker CSMIB. It is an ETF that was placed on the market on January 26, 2010 by the company iShare and with a physical replica of the index. It has a capitalization of 336 million euros with an annual return that makes it one of the best ETFs in Italy, equal to 20.7%. Volatility is medium-low, standing at 15% with interesting management costs since they reach 0.33% per annum.

Lyxor FTSE Italia All Cap

It can be identified by the ticker ITAPIR and the ISIN code LU1605710802. The ETF was listed on the Italian Stock Exchange on May 12, 2017, immediately obtaining a good response from investors, reaching 13 million euros in size in a few years. It provides for a total replication of the Italian stock index including the stocks of the FTSE MIB, those of the FTSE Italia MID Cap and twenty of the Small cap index. It is considered among the best Italian ETFs both for its return of 17.58% per year and for its costs of 0.35%.

Xtrackers FTSE MIB ETF 1D

Its ISIN code is LU0274212538. It was listed on the stock exchange on January 4, 2007, making it one of the oldest indices with an open size of 49 million. The replication is physical with a volatility of 16% medium-high. Investing in this ETF can be profitable, given the return of 20% per year and with a cost of 0.30%.


It is listed on the Italian Stock Exchange under ISIN code IE00B1XNH568 and ticker IMIB. The fund has a size of 246 million euros and was listed in July 2006. It provides for physical replication with a volatility of 15.83%, an annual return of 20% and a management fee of 0.35%.


Its ISIN code is LU1681037518. The fund has a quote of €54 with a size of €87 million. It is among the most recent, as it was placed on January 31, 2018. It has a medium-low volatility of 15.58%. It provides a synthetic replication with reference to the 40 largest capitalization companies of the FTSE MIB. It can be considered among the best ETFs Italy thanks also to the low costs that are around a percentage of 0.18% per year. 

Lyxor FTSE MIB ETF – Dist

Its ISIN code is FR0010010827 with a size of 642 million euros, making it among the largest ETFs on the Italian Stock Exchange. It provides a physical replication of the FTSE MIB with an annual return of 19.93% and medium to high volatility. Management fees are around 0.35%.

How to invest in ETFs 

To invest in ETFs the solutions are different. In fact, you will have the opportunity to contact a financial advisor and request to open a position on one of the best Exchange Traded Funds on the Italian Stock Exchange. Another opportunity is to go to your bank and apply to the financial counter. Finally, if you want to have maximum autonomy in the management of your money and in the choice of the ETF combining also an economic saving, the solution is to register with an online broker, such as eToro.

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