Markets

DAX stock index

What is the DAX stock index?

The DAX (also known as the Deutscher Aktien Index or GER40) is a stock index representing the 40 largest and most liquid German companies traded on the Frankfurt Stock Exchange. The prices used to calculate the DAX index come from the electronic trading system Xetra. The free float method is used to calculate index weights as well as measure average trading volume.

The DAX was created in 1988 with a starting index level of 1,163 points. DAX member companies account for approximately 80% of the total market capitalization traded on the Frankfurt Stock Exchange. The index has historically consisted of 30 companies, but has expanded to 40 as of September 3, 2021.

key takeaways

  • The DAX is the German blue chip market index that tracks the performance of the 40 largest companies traded on the Frankfurt Stock Exchange.
  • Xetra is an electronic trading system that provides prices for calculating the DAX index.
  • The DAX is an important benchmark for German and European stock markets, listing major companies by liquidity and market capitalization, and an indicator of German economic trends.
  • Some of the world’s biggest names on DAX include Volkswagen, Bayer, BMW and Adidas.

Learn about the DAX stock index

The DAX, which tracks 40 large, actively traded German companies, is considered by many analysts to be a gauge of the health of the German economy. DAX-listed companies are multinational companies that influence the German domestic economy and the global economy.The success of these companies contributed significantly to the so-called “German economic miracle” or literary geniusa term describing the rebirth of Germany after World War II.

The companies in the DAX index cover a wide range of industries. For example, Bayer AG, a pharmaceutical and consumer health company founded in 1863, is known for its pain relief and anti-allergy products. Allianz SE is a global financial services company focused on providing clients with insurance and asset management products. Adidas AG develops, manufactures and sells popular sports shoes, apparel and equipment.

special attention items

Unlike most indices, the DAX updates futures prices for the next day, even after major stock exchanges close. Changes are made on regular review dates, but index members can be removed if they are no longer in the top 45 largest companies, or added if they are outside the top 25.

The vast majority of shares on the Frankfurt Stock Exchange are now traded on the fully electronic Xetra system, with a share adoption rate of nearly 95% among the 40 DAX members.

As a blue chip market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large public companies.

DAX Member Company

As of January 25, 2022, four months after the index’s dramatic expansion, the DAX companies included (in alphabetical order):

  • Airbus SE (AIR:GR)*
  • Adidas Corporation (ADS:GR)
  • Allianz (ALV:GR)
  • BASF (BAS:GR)
  • Bayer (BAYN:GR)
  • Beiersdorf AG (BEI:GR)
  • Bayerische Motoren Werke AG (BMW:GR)
  • Brenntag SE (BNR:GR)*
  • Continental (CON:GR)
  • Covestro (1COV:GR)
  • Daimler AG (DAI:GR)
  • Delivery Hero SE (DHER:GE)
  • Deutsche Börse (DB1:GR)
  • Deutsche Bank (DBK:GR)
  • Deutsche Post (DPW:GR)
  • Deutsche Telekom (DTE:GR)
  • E.ON SE (EOAN:GR)
  • Fresenius Medical Care AG & Co. KGaA (FME.GR)
  • Fresenius SE & Co. KGaA (FRE:GR)
  • Heidelberg Cement AG (HEI:GR)
  • HelloFresh SE (HFG:GR)*
  • Henkel AG & Co. KGaA (HEN3:GR)
  • Infineon Technologies AG (IFX:GR)
  • Linde PLC (LIN:GR)
  • Merck & Co (MRK:GR)
  • MTU Aero Engines AG (MTX:GR)
  • Muenchener Rueckversicherungs-Gesellschaft AG in Munich (MUV2:GR)
  • Porsche Cars Holding AG (PAH3:GR)*
  • Puma SE (PUM:GR)*
  • Qiagen NV (QIA:GR)*
  • RWE AG (RWE:GR)
  • SAP SE (SAP:GR)
  • Sartorius AG Vz (SRT3:GR)*
  • Siemens AG (SIE:GR)
  • Siemens Energy (ENR:GR)
  • Siemens Healthineers AG (SHL:GR)*
  • Symrise AG (SY1:GR)*
  • Vonovia SE (VNA:GR)
  • Volkswagen AG (VOW3:GR)
  • Zalando SE (ZAL:GR)*

* One of 10 new companies added in September 2021

Other major stock exchanges

Other major global trading exchanges include:

  • New York Stock Exchange (NYSE)
  • Nasdaq
  • London Stock Exchange (LSE)
  • Tokyo Stock Exchange (TSE)

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