How to invest in FTSE MIB index funds in 2024

Find out how to invest in the FTSE MIB index, learn which trading platforms have the lowest fees, and what’s easiest for beginners.
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Updated: May 12, 2023
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It only takes a few minutes to invest in the FTSE MIB index. One of the simplest and most popular ways to invest is to buy shares in a Vanguard FTSE MIB ETF through an online trading platform.

Where can I invest in the FTSE MIB index?

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According to our expert research, Plus500 is the best ETF broker to invest in FTSE MIB index funds. 

Both FTSE MIB ETFs and FTSE MIB CFDs are available to invest in through Plus500 .

Here are three more places to buy the FTSE MIB, ranked according to their cost, security, and features.

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1
Min. Deposit
$ 100
Best offer
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10
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2
Min. Deposit
$ 10
Best offer
User Score
9.9
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
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CySEC, FCA

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3
Min. Deposit
$ 0
Best offer
User Score
9.6
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
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Payment Methods:
Bank Wire, Check, Debit Card, Wire Transfer
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How do I invest in the FTMIB index?

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The easiest way is to sign up to a stock broker, open an investment account, and buy shares in an FTSE MIB ETF or CFD. This guide explains how to do it:

Step 1. Sign up to Plus500

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We recommend using Plus500 to invest in FTSE MIB. Sign up for a brokerage account and deposit some money. You may need to supply a form of photo ID to verify the account.

1
Min. Deposit
$ 100
Best offer
User Score
10
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 2. Decide how to buy FTSE MIB

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This boils down to choosing between an FTSE MIB ETF or CFD. ETFs are generally better suited to investors who want to passively track the FTSE MIB’s performance. CFDs offer a greater range of trading options: you can use leverage, short the index, or buy and sell it outside of trading hours.

Step 3. Invest in the FTSE MIB

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Sign into your trading account and search for the FTSE MIB. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.

Step 4. Monitor your investment

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When you buy a CFD, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.

Your trading account will show the price change in the FTSE MIB since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the FTSE MIB and close your position, ideally at a profit!

The different ways to invest in the FTMIB

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As we mentioned above, there are numerous ways to put your money into the FTSE MIB. ETFs and CFDs are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.

FTSE MIB ETFs

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An ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.

An FTSE MIB ETF is one way of investing in the FTSE MIB. It’s simply an investment fund that mirrors the performance of the FTSE MIB. When you buy shares in the fund, the value of your investment will rise or fall with the FTSE MIB itself. 

ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the FTSE MIB index, because you can buy or sell shares in the fund throughout the day.

Examples of popular FTMIB ETFs

  • iShares FTSE MIB UCITS ETF (IMIB)
  • Xtrackers FTSE MIB UCITS ETF (XMIB)
  • Amundi ETF FTSE MIB UCITS ETF (CBM)

FTSE MIB index funds

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An index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the FTSE MIB. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.

However, there are a couple of differences. FTSE MIB index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in FTSE MIB index funds.

That means an FTSE MIB mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.

Examples of popular FTMIB index funds/mutual funds

  • Mediolanum BB Fondo Italiano Azionario (F00000VHUZ)
  • Eurizon Azioni Italia (IT0001173603)
  • Allianz Italian Equity (IT0005326898)

FTSE MIB CFDs

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CFDs (contracts for difference) are a way to speculate on FTSE MIB price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the FTSE MIB – but it’s separate from it.

As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.

All of this means FTSE MIB CFDs offer the potential to outperform a fund that passively tracks the FTSE MIB’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.

FTSE MIB futures

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Futures contracts are agreements to buy or sell the FTMIB at an agreed price on a set date in the future. FTSE MIB futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.

Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.

Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the FTSE MIB then you might want to short the FTSE MIB so that you still make some money if the price falls.

FTSE MIB stocks

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Another way to invest in the FTSE MIB is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the FTSE MIB in order to get broad exposure to its performance.

The most heavily weighted stocks in the FTSE MIB tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.

One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.

For the FTSE MIB index, the largest stocks you might choose to invest in are:

CompanyIndex weight
Enel S.p.A. (ENEL.MI)9.86%
Intesa Sanpaolo S.p.A. (ISP.MI)8.60%
Eni S.p.A. (ENI.MI)7.54%
Unicredit S.p.A. (UCG.MI)6.79%
Generali Assicurazioni S.p.A. (G.MI)6.41%
Enel Américas S.A. (ENA.MI)5.70%
Atlantia S.p.A. (ATL.MI)4.17%
Leonardo S.p.A. (LDO.MI)3.90%
Stellantis N.V. (STLA.MI)3.68%
Telecom Italia S.p.A. (TIM.MI)3.36%

The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.

How much does it cost to invest in the FTSE MIB index?

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From $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD, or share, plus the fees associated with it.

InstrumentTrading feeManagement fee
Exchange traded funds$0-$5.990-0.2%
Index fund / mutual fund$0-$5.990.1-2%
Individual stock$0-$3None
CFD$0None

*A fee comparison of 3 leading brokers for example purposes

ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.

All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars. 

Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.

Should I invest in the FTSE MIB index? 

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Yes, FTSE MIB investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It gives you an instantly diverse portfolio with exposure to a broad area of the stock market.

The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The FTSE MIB is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.

What are the advantages of investing in the FTSE MIB index?

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An index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the FTSE MIB index:

  • The FTSE MIB is a diverse index. The FTSE MIB index provides exposure to a diverse range of companies from various sectors, including financials, energy, utilities, and consumer goods. 
  • Get exposure to Italy’s largest companies. The FTSE MIB index comprises some of Italy’s largest and most established companies, such as Enel, Eni, and UniCredit. These well-known companies have a long history of stable growth, making them attractive for investors seeking exposure to the Italian market.
  • The MIB gives exposure to the European economy. Italy is a member of the European Union, and the FTSE MIB index provides exposure to the broader European economy. This can benefit investors looking to diversify their portfolio with exposure to other developed economies.
  • Italy’s economy is growing. The FTSE MIB index may generate high returns over the long term. Italy has a relatively young population and a growing economy, which could translate into strong growth for the country’s largest companies.

What are the disadvantages of investing in the FTSE MIB index?

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The main risk of investing in the FTSE MIB is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of FTSE MIB investing.

  • Italy is one of the less stable countries in Europe. Italy has a history of political instability, which can create uncertainty in the market and negatively impact the performance of the FTSE MIB index.
  • The FTSE MIB is concentrated in a few sectors. The FTSE MIB index is heavily concentrated in a few sectors, such as financials and energy. This can create concentration risk for investors who may not be adequately diversified across sectors.
Invest in the FTSE MIB Index

FAQs

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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.