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How to Invest in Stoxx 600 Index Funds in 2025
In this guide
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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Putting your money into an index is a simple and convenient way to create an investment portfolio, especially if you’re just getting started with investing.
An index, like the Stoxx 600, provides a snapshot of a particular section of the stock market, and by investing in it, you gain exposure to a diverse portfolio of stocks, which can help reduce risk compared to investing in individual companies.
One of the best ways to invest in the Stoxx 600 index is through Exchange-Traded Funds (ETFs). ETFs are designed to track the performance of an index and are highly convenient for beginners. They allow you to buy shares in the Stoxx 600 with just a few clicks.
Read on to learn how to invest in the Stoxx 600 effectively and explore the best methods to do so. Compare different investment strategies, available ETFs and index funds, and find out why Stoxx 600 index investing is a low-cost, relatively low-risk approach to growing your wealth over time.
How do I invest in the SXXP index?
Copy link to sectionThe easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Stoxx 600 ETF. This guide explains how to do it:
Step 1. Sign up to eToro
Copy link to sectionWe recommend using eToro to invest in Stoxx 600. Create your trading account and deposit some money using a payment method of your choice.
This is a fairly quick process that takes just 15-30 minutes, but you need to supply a form of photo ID to verify the account before you can use it.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Step 2. Decide how to buy Stoxx 600
Copy link to sectionThis boils down to choosing between an Stoxx 600 ETF or buying the stocks in the index manually. ETFs are generally better suited to investors who want to passively track the Stoxx 600’s performance. Individual stocks offer a greater range of trading options and flexibility.
Step 3. Invest in the Stoxx 600
Copy link to sectionSign into your trading account and search for the Stoxx 600. 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
Copy link to sectionWhen you buy a stock, 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 Stoxx 600 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 Stoxx 600 and close your position, ideally at a profit!
How much does it cost to invest in the Stoxx 600 index?
Copy link to sectionFrom $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.
*Note that CFDs are not available to US investors.
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.
The different ways to invest in the SXXP
Copy link to sectionAs we mentioned above, there are numerous ways to put your money into the Stoxx 600. ETFs and individual stocks 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.
Stoxx 600 ETFs
Copy link to sectionAn 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 Stoxx 600 ETF is one way of investing in the Stoxx 600. It’s simply an investment fund that mirrors the performance of the Stoxx 600. When you buy shares in the fund, the value of your investment will rise or fall with the Stoxx 600 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 Stoxx 600 index, because you can buy or sell shares in the fund throughout the day.
Stoxx 600 index funds
Copy link to sectionAn index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Stoxx 600. 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. Stoxx 600 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 Stoxx 600 index funds.
That means an Stoxx 600 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.
Stoxx 600 CFDs (non-US users only)
Copy link to sectionCFDs (contracts for difference) are a way to speculate on Stoxx 600 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 Stoxx 600 – 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 Stoxx 600 CFDs offer the potential to outperform a fund that passively tracks the Stoxx 600’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.
Stoxx 600 futures
Copy link to sectionFutures contracts are agreements to buy or sell the SXXP at an agreed price on a set date in the future. Stoxx 600 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 Stoxx 600 then you might want to short the Stoxx 600 so that you still make some money if the price falls.
Stoxx 600 stocks
Copy link to sectionAnother way to invest in the Stoxx 600 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 Stoxx 600 in order to get broad exposure to its performance.
The most heavily weighted stocks in the Stoxx 600 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.
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.
Where can I invest in the Stoxx 600 index?
Copy link to sectionAccording to our expert research, eToro is the best ETF broker to invest in Stoxx 600 index funds.
Both Stoxx 600 ETFs and Stoxx 600 CFDs are available to invest in through eToro .
Here are three more places to buy the Stoxx 600, ranked according to their cost, security, and features.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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How to invest in STOXX Europe 600 Index
Should I invest in the Stoxx 600 index?
Copy link to sectionYes, Stoxx 600 investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It’s also ideal if you don’t have the time to actively manage a portfolio of stocks, because you can simply invest in a bunch at the same time and then leave it alone.
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 Stoxx 600 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 STOXX Europe 600 index?
Copy link to sectionAn 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 STOXX Europe 600 index:
- The STOXX provides diversification. The STOXX 600 index covers many industries and sectors, exposing investors to diverse companies across Europe. This can reduce the overall risk in a portfolio.
- The index is made up of some of the best European companies. The index includes some of Europe’s largest and most well-known companies, such as Nestle, Royal Dutch Shell, and BMW. Investing in the index allows investors to access these companies without having to pick individual stocks.
- There is potential for long term growth. Investing in the STOXX 600 index can expose investors to companies with strong potential for long-term growth. Many of the companies in the index are leaders in their respective industries and have a track record of success.
- You may benefit from currency fluctuations. As the index comprises companies from various European countries, investing in it can expose investors to multiple currencies. This can diversify a portfolio and potentially reduce currency risk.
What are the disadvantages of investing in the STOXX Europe 600 index?
Copy link to sectionThe main risk of investing in the STOXX Europe 600 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 STOXX Europe 600 investing.
- A few companies dominate it. While the index includes many stocks, just a handful dominate it. The index is heavily weighted towards a few large companies, such as Nestle and Royal Dutch Shell. This concentration of holdings can lead to increased risk for investors.
- The economic conditions of Europe influence the index. The economic conditions of Europe influence the STOXX 600 index. Any economic uncertainty or instability in the region can harm the index and the performance of the companies it comprises.
- Geopolitical risks may impact performance. As the index is made up of companies from various European countries, it is subject to geopolitical risks such as changes in regulations, taxes, or political instability in any of the countries represented in the index.
