Performance of a PEA over 10 Years: Comprehensive Analysis, Examples, and Strategies to Maximize Your Equity Savings Plan

The Equity Savings Plan (PEA) represents one of the most powerful investment tools for individuals in France looking to grow their wealth over the long term. Thanks to its favorable tax treatment and accessibility, the PEA is attracting more and more savers, particularly those who aim for capital growth over 10 years or more. This article provides a thorough study of the PEA's performance over 10 years, real statistics, key factors for optimization, and concrete strategies, illustrated notably by the example of solid companies like RELX Plc.

Introduction to the PEA

The PEA is a regulated savings tool allowing the holding of a portfolio of European shares while benefiting, after five years of ownership, from an exemption from income tax on capital gains and dividends (excluding social security withholdings). It mainly consists of the bank PEA (shares, eligible UCITS) and the PEA-SME (oriented towards SMEs and ETIs listed on stock exchanges).

Why Invest Over 10 Years with a PEA?

Time is the main ally of the investor: by maintaining his capital invested over a decade, the saver benefits from interest compounding, a risk dilution effect, and, above all, potentially superior growth compared to risk-free investments.

  • Long-term effect: Investment over a long period reduces the impact of occasional crises and maximizes the chances of gains.
  • Attractive taxation: No tax on gains realized after five years (excluding social security withholdings).
  • Growth potential: Historical record of attractive annualized returns for stocks over 10 years in Europe and worldwide.

What is a PEA? Detailed Operation

The PEA allows investment in European securities: listed shares, ETFs (eligible trackers/indices), UCITS, and certain non-listed titles. Contributions are capped (€150,000 for a standard PEA). Tax exemption on capital gains and dividends is only obtained if the plan is not closed before five years. After eight years, partial withdrawals are possible without closing.

In investing over 10 years, the subscriber benefits:

  • A wide range of supports, including individual shares and ETFs.
  • Optimal taxation on revenues and capital gains after five years.
  • Increased flexibility for managing the portfolio over the long term.

What Return Can Be Expected Over 10 Years?

Average Return of a PEA Over 10 Years

The return of a PEA depends primarily on the assets held (shares, ETFs), diversification, and management. As an indication, the annualized return of the European equity market (MSCI Europe) historically varies between 6% to 8% per year with dividends reinvested, excluding fees and taxation. Over 10 years, this represents a cumulative potential return of around 80% to 115%, assuming linear growth and no intermediate withdrawal.

In reality, the effective performance of a PEA over 10 years will depend on:

  • Choice of eligible stocks or ETFs
  • Frequency of contributions and arbitrages
  • Management discipline (fees, absence of withdrawals, diversification…)

It is therefore possible, by adopting rigorous management and good diversification, to achieve a return above 7% per year over a period of 10 years. However, this is not guaranteed, past performance does not predict future results.

Case Study: Real Performance of RELX Plc over 10 Years

Introduction to RELX Plc

RELX Plc is a major player in the Communications Services sector, industry Publishing. Its growth profile, stability of results, and regular distributions make it a sought-after company for a long-term investment strategy, directly eligible for the PEA through its shares and numerous ETFs.

  • Stock price (London, 10/11/2025): 3,180 pence (approximately €36.6)
  • Market capitalization (November 2025): €73.54 billion
  • Dividend per share (2024): €0.62
  • Estimated dividend yield (2025): 2.1%
  • Price-to-Earnings Ratio (P/E ratio): 33.5
  • Net Profit Margin: 21%
  • Number of Shares: 1.83 billion
  • Beta: estimated value between 0.2 and 0.3 (low volatility compared to the market)

Pure Performance of RELX over 10 Years

Over 10 years, RELX has shown marked growth, with a stock price multiplied by approximately 4 (adjusted for dividends), and a total return (dividends reinvested) exceeding 250% over the period. This performance illustrates the interest of including stable, low-volatility companies that regularly distribute dividends within a diversified PEA.

For an investor who has invested in RELX since 2015, the valuation of his capital has been strengthened by:

  • The notable increase in the stock price (+10% to +14% annually depending on the periods considered)
  • Growing dividends, reinvested each year (average yield of 2%)

This long-term performance can be illustrated by a managed PEA strategy or ETF incorporating RELX and other defensive values of the same type.

The Key Factors for Optimizing PEA Returns

Selection and Diversification of Assets

One of the main rules for maximizing PEA performance consists of diversifying:

  • Mix sectors (technology, health, consumer goods, services...)
  • Incorporate eligible ETFs (for example, ETF MSCI Europe, SBF 120, CAC 40, Stoxx 600, Europe Dividend, etc.)
  • Select a few highly visible and regularly growing companies capable of delivering performance close to or above average (for example: RELX, Hermès, L'Oréal, Schneider Electric, ASML, SAP, etc.)
  • Adjust your allocation based on your time horizon and risk sensitivity

Dividends and Systematic Reinvestment

Reinvesting dividends is a powerful factor for improving long-term performance. Over 10 years, simply reinvesting dividends automatically can increase the final value of the capital by 20 to 40% depending on the amounts.

Active management or passive management?

  • Active management: Regular monitoring of the portfolio, arbitrages to optimize performance, active selection of stocks based on market trends. Suitable for experienced investors or those accompanied.
  • Passive management: Choice of index ETFs, periodic rebalancing, long-term discipline. This method appeals for its simplicity, low fees, and often robust results over 10 years.

Many investors opt for a mixed approach, building a core of broad ETFs (MSCI Europe, Euro Stoxx 50...) and adding a portion of high-quality stocks held directly in the PEA:

  • RELX is often included in major European ETFs eligible for the PEA (Stoxx 600, Euro Stoxx 50, etc.)

Economic conditions: impact on 10-year performance

Stock market returns over a decade are not linear. They fluctuate according to:

  • The economic cycle (expansion, recession)
  • The level of interest rates
  • Sectorial or geopolitical crises

Over longer periods, the historical trend remains positive, but it is crucial to accept temporary volatility and have a long-term perspective. The PEA is perfectly suited to this exercise by locking in taxation and encouraging patience.

Example of constructing a high-performing PEA over 10 years

Step 1: Initial composition

  • 30% in broad ETFs (MSCI Europe, Stoxx 600, CAC 40): immediate diversification and global coverage
  • 20% in specialized ETFs (dividend, healthcare or technology sectors)
  • 30% in individual shares of companies with visibility and sustainable growth (e.g., RELX, Dassault Systèmes, LVMH, Schneider Electric...)
  • 20% in cash or money market funds to seize opportunities during market corrections

Step 2: Annual follow-up and arbitrages

  • Portfolio rebalancing according to the relative performance of the instruments
  • Reinforcing positions that underperformed, partial taking of profits on top performers
  • Systematic reinvestment of dividends
  • Incorporating new values or ETFs responding to the current situation or revitalizing the portfolio

Focus: PEA-eligible ETFs incorporating RELX Plc

RELX is integrated into a large number of European ETFs eligible for the PEA:

  • Stoxx Europe 600 ETF (significant weighting of RELX)
  • MSCI Europe ETF
  • Thematic sector ETFs (e.g., technology, communication, dividends)

By diversifying through these ETFs, the investor gains access to the performance of RELX while benefiting from a wide basket of stocks and high liquidity.

Comparing performance: Individual stocks vs ETFs over 10 years

Strategy Volatility Potential Performance over 10 years Fees Level of Engagement
Individual Stock Portfolio (e.g., RELX, LVMH...) Higher Can significantly outperform the index if well selected (up to 12-15% annualized for the best picks) Moderate to low High
100% ETF Index PEA Portfolio Low to moderate Generally around 7-8%/year over 10 years (historical) Low Limited

Risks to Watch Over the Next 10 Years

  • Market Risks: stock market crashes, sector bubbles, prolonged declines in indices
  • Currency Risk: a portion of European stocks operate in different currencies, which can impact performance
  • Selection Risk: excessive concentration on a few stocks, unexpected poor individual performances
  • Timing Risk: temptation for hasty exits during crises, which statistically reduces long-term returns

Tax Optimization for Your PEA Over 10 Years

Reminder of tax rules:

  • No taxation on capital gains after five years (excluding social security contributions)
  • Dividends withdrawn from the PEA after eight years are exempt from tax (except for social security contributions)
  • No obligation to withdraw at term: the PEA can be kept for life, even after partial withdrawals past eight years

Practical Tips for Success with Your PEA Over 10 Years

  • Invest progressively (scheduled payments or DCA) to smooth entry points
  • Keep a cash reserve to take advantage of market corrections
  • Emphasize a mix between broad ETFs and some leading sector players
  • Reinvest dividends systematically to benefit from the snowball effect
  • Do not withdraw before five years to avoid losing tax exemptions
  • Diversify geographically and by sector, even within the constraints of the PEA
  • Prefer regularity and avoid untimely buy-sell cycles
  • Use simulations to evaluate long-term returns according to various scenarios

Examples of Historical Performances of Solid Companies Over 10 Years

  • RELX Plc: growth exceeding 250% with reinvested dividends over 10 years
  • LVMH: steady growth, stock price multiplied by more than 4
  • Hermès: exceptional return, uninterrupted growth for over a decade
  • ASML: European technology leader, total return significantly above the market average

A well-constructed portfolio combining these values and some historical ETFs would have achieved an annualized return between 8 and 12% over 10 years.

Projection: What Scenarios for the Next 10 Years?

Although markets remain unpredictable in the short term, investing through a PEA over 10 years remains very attractive due to:

  • Structural stock market growth
  • The emergence of new promising sectors (energy, AI, health, tech…)
  • The gradual reduction of risks through regular reinvestment and diversification

Conclusion: The PEA over 10 years, a key tool for building wealth

The Plan d’Épargne en Actions emerges as an indispensable growth vehicle to prepare for long-term projects or retirement. Over a period of 10 years, the average return of a well-managed, diversified, and disciplined PEA is around 7 to 8 % per year, with exceptional cases like RELX Plc generating more than 250 % over the past decade including dividends. The key to success lies in discipline, diversification, and patience. Thanks to its attractive tax framework and multiple investment opportunities, the PEA constitutes a prudent and performing pillar for building a dynamic and secure wealth portfolio.