The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Learn everything you need to know about index trading and how it works in this guide. Most DAX ETFs are similar and essentially just track the performance of the index. When comparing the different ETFs, investors usually look at the total expense ratio (TER) – i.e. how much it will cost to hold the ETF – as well as how much money the ETF has under management and where it is domiciled.

The Global X DAX Germany ETF, known by its ticker symbol ‘DAX’, consistently distributes dividends earned from tracking the performance of the DAX Index. Supply chain disruptions and the prospect of elevated crude oil prices may pose risks to the DAX Index due to potential impacts on the global economy. Furthermore, the DAX Index is sensitive to central bank policies and commentary, with hawkish statements from the European Central Bank (ECB) or the Federal Reserve (Fed) potentially leading to market losses. The Market Cap of the DAX Index, as of the latest available data, is a crucial metric indicating the total market value of all the companies listed on the DAX.

Investors seeking similar exposure to the DAX Index also have the option of share dealing with gold bear market explained stocks from companies included within it. However, ETFs remain a preferred method among most investors due to their ability to offer more comprehensive coverage across all components of the DAX index itself. Although the DAX Index offers numerous advantages, it also has some drawbacks. It may be vulnerable to economic recessions, as indicated by the decline in the Sentix Index signaling a German economic downturn.

1. Rewinding to July 1, 1988, marks the first publication of the DAX Index.
2. For the majority of its history, the DAX was known as the “DAX 30” as it consisted of the 30 largest companies listed on the Frankfurt Stock Exchange.
3. Unlike other stock indices, the DAX updates with futures prices for the upcoming day even after the main stock exchange has closed.
4. No representation or warranty is given as to the accuracy or completeness of this information.
5. It serves as an important indicator of Germany’s economic condition by mirroring the performance of prominent companies registered with the Frankfurt Stock Exchange.

We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake. 72% of retail client accounts lose money when trading CFDs, with this investment provider. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. The DAX 40 (Deutscher Aktienindex) tracks the performance of the 40 largest German companies listed on the Frankfurt Stock Exchange.

When you hear analysts commenting on the performance of stock markets in Continental Europe, the German index is very likely the first one that will be mentioned. The Dax index belongs to Germany, which stands as a principal gauge of the nation’s economic condition. This index reflects the trading outcomes of 40 major and highly liquid German companies listed on the Frankfurt Stock Exchange. There are different ways to invest in the DAX Index, each having its own advantages and disadvantages. Investors can purchase shares of Exchange-Traded Funds (ETFs) that track the DAX, providing a diversified investment in a single transaction. Alternatively, investors can buy shares of individual companies listed on the DAX, allowing for a more targeted approach.

Plan your trading

DAX40 includes an additional ten companies, making it a broader representation of the German economy and providing investors with a more comprehensive view of the market. So, although they share similarities and are both stock market indices, DAX30 and DAX40 are distinct indexes with differing compositions and implications for investors. Similar to the stock market, the DAX Index is a major stock market index. Even though the DAX Index hk fino trade co limited plays a significant role in the German stock market, it doesn’t represent the entire stock market. The DAX Index represents 40 of the largest and most liquid German companies trading on the Frankfurt Exchange, reflecting roughly 80% of the market capitalization of the exchange.

DAX Index: Germany’s Stock Market

The constituents are picked by their free-float market capitalisation. It is Germany’s most important stock index, but also widely followed by traders and investors worldwide, given the significant role Germany is playing in the global economy. While they are related, they represent different things in the financial world. DAX30 refers to the Deutscher Aktienindex, which is Germany’s benchmark stock market index comprising the 30 major German companies trading on the Frankfurt Stock Exchange. On the other hand, DAX40 is an extension of DAX30 introduced in September 2021.

Trading platforms

The DAX is a stock market index that measures the performance of Germany’s 40 largest companies. The index’s components represent almost 80% of the Frankfurt Stock Exchange’s aggregate market capitalization. Essentially, the DAX Index comprises 40 of the most liquid and largest German companies traded on the Frankfurt Stock Exchange. Prices used for the DAX Index calculation are sourced from Xetra, an electronic trading system.

DAX Stock Index Components

By way of index composition – adding 10 new stocks reduces the concentration risk we see from having 30 stocks and by increasing the market cap by over E350b the diversification, in theory, lowers the variance. The DAX, a key German stock index, encapsulates the performance of Germany’s 40 leading and most actively traded companies on the Frankfurt Exchange, offering an overview of the nation’s economic vitality. The DAX Index is considered a gauge for Germany’s economic health and includes multinational companies that have a significant impact both domestically and globally. However, it does not represent all economic sectors and companies within the stock market. The DAX stock index is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Stock Exchange. DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange.

The index was historically comprised of 30 companies but was expanded to 40 in 2021. There are multiple significant forex trading online – making money on the stock exchange for everyone stock indexes in Germany besides the DAX Index. The MDAX represents 50 Prime Standard shares of non-technology sectors that fall after the DAX when considering order book volume and market capitalization.