The Lazy 3-ETF Portfolio: The Passive Strategy That Beats Most Active Funds
3 ETFs. 1 rebalance per year. 0 stress. The lazy portfolio is used by millions of passive investors worldwide. Here's how to adapt it to the French market using the PEA and the best available ETFs.
Why simplicity beats expertise
Over 15 years, more than 80% of active funds underperform their benchmark index after fees. The lazy portfolio solves this with minimal fees and zero emotional decision-making.
The 3-fund portfolio adapted for France
| ETF | Ticker | Allocation | Exposure | TER |
|---|---|---|---|---|
| Amundi MSCI World | CW8.PA | 70% | 1,600 global large-caps (US, Europe, Japan...) | 0.12% |
| Amundi MSCI Emerging Markets | PAEEM.PA | 20% | China, India, Brazil, Taiwan, South Korea | 0.20% |
| Amundi Euro Govies | MTH.PA | 10% | Eurozone government bonds (volatility buffer) | 0.14% |
Note: CW8 and PAEEM are PEA-eligible. MTH (bonds) is not PEA-eligible — hold it in a CTO or life insurance policy.
For under €10,000 or if you're just starting: forget the 3 ETFs. 100% CW8.PA in a PEA. The MSCI World already contains 1,600 companies across 23 countries. That's enough to begin.
Portfolio variants by profile
Aggressive (20+ year horizon, under 35)
- 80% CW8.PA (MSCI World) in PEA
- 20% PAEEM.PA (Emerging Markets) in PEA
- 0% bonds (long horizon absorbs volatility)
Balanced (10-20 year horizon)
- 70% CW8.PA in PEA
- 20% PAEEM.PA in PEA
- 10% short-duration bond ETF in CTO
Defensive (<10 years or near retirement)
- 50% CW8.PA in PEA
- 10% PAEEM.PA in PEA
- 40% bond ETF in CTO or life insurance euro fund
How to set it up and manage it
- Open a PEA at Trade Republic, BoursoBank or Bourse Direct
- Define your target allocation (e.g. 80/20 or 70/20/10)
- Set up a monthly DCA: transfer X€ on the 5th, invest per allocation
- Each month: invest automatically, no deliberation
- Once a year (January): check weights are still near target (±5%). If drifted, direct that month's investment toward the underweight ETF
- Ignore everything else: crashes, news, "this time it's different"
Track your lazy portfolio on TREESTEP
TREESTEP lets you monitor your lazy portfolio allocation, get an annual rebalancing reminder, and earn XP for every contribution maintained. The lazy portfolio becomes even simpler with a gamified assistant.
Start for free →FAQ
CW8 or WPEA for the MSCI World?
CW8.PA (Amundi MSCI World) and WPEA.PA (iShares MSCI World) are both PEA-eligible and very similar. CW8 is older and more liquid, TER 0.12%. WPEA TER 0.20% but distributed by iShares (Blackrock). Day-to-day the difference is negligible — choose whichever is available fee-free at your broker.
Should I add an S&P 500 ETF on top of MSCI World?
No. The MSCI World already contains ~67% US companies. Adding an S&P 500 ETF further overweights the US. If you want more US exposure you can, but that's a geographic bet, not diversification. See our S&P 500 vs MSCI World comparison.