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DAX Stock Index

DAX Stock Index
InvestingMarketsInternational Markets

What Is the DAX Stock Index?

The DAX — otherwise called the Deutscher Aktien Index or the GER40 — is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Exchange. The prices used to compute the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to work out the index weightings alongside a measure of the average trading volume.

The DAX was made in 1988 with a starting index level of 1,163 points. DAX member companies represent generally 80% of the aggregate market capitalization that trades on the Frankfurt Exchange. The index was generally comprised of 30 companies yet was expanded to 40 as of Sept. 3, 2021.

Understanding the DAX Stock Index

The DAX index, which tracks 40 large and actively traded German companies, is considered by numerous analysts to be a measure for Germany's economic wellbeing. The companies listed in the DAX are multinational concerns that influence the domestic German economy and the global economy also. The progress of these companies has extraordinarily contributed to what is known as the "German economic marvel" or Wirtschaftswunder, a term that portrays Germany's resurrection after World War II.

The companies in the DAX index span a great many industries. For instance, Bayer AG is a drug and consumer wellbeing company established in 1863 and is notable for its pain and sensitivity help products. Allianz SE is a global financial services company that focuses on furnishing customers with insurance and asset management products. Adidas AG creates, produces, and markets famous athletic footwear, apparel, and equipment.

Special Considerations

In an alternate twist from most indices, the DAX is refreshed with futures prices for the next day, even after the super stock exchange has closed. Changes are made on customary survey dates, however index members can be eliminated in the event that they as of now not rank in the main 45 largest companies, or added assuming they break the best 25.

By far most of shares on the Frankfurt Exchange currently trade on the all-electronic Xetra system, with a close 95% adoption rate for the stocks of the 40 DAX members.

As a blue-chip stock market index, the DAX is basically the same as the Dow Jones Industrial Average (DJIA), which likewise tracks large, publicly owned companies.

DAX Member Companies

As of Jan. 25, 2022, four months after the index's major expansion, the DAX companies remembered (in sequential order):

  • Airbus SE (AIR:GR)*

  • Adidas AG (ADS:GR)

  • Allianz SE (ALV:GR)

  • BASF SE (BAS:GR)

  • Bayer AG (BAYN:GR)

  • Beiersdorf AG (BEI:GR)

  • Bayerische Motoren Werke AG (BMW:GR)

  • Brenntag SE (BNR:GR)*

  • Continental AG (CON:GR)

  • Covestro AG (1COV:GR)

  • Daimler AG (DAI:GR)

  • Delivery Hero SE (DHER:GE)

  • Deutsche Boerse AG (DB1:GR)

  • Deutsche Bank AG (DBK:GR)

  • Deutsche Post AG (DPW:GR)

  • Deutsche Telekom AG (DTE:GR)

  • E.ON SE (EOAN:GR)

  • Fresenius Medical Care AG and Co. KGaA (FME.GR)

  • Fresenius SE and Co. KGaA (FRE:GR)

  • HeidelbergCement AG (HEI:GR)

  • HelloFresh SE (HFG:GR)*

  • Henkel AG and Co. KGaA (HEN3:GR)

  • Infineon Technologies AG (IFX:GR)

  • Linde PLC (LIN:GR)

  • Merck KGaA (MRK:GR)

  • MTU Aero Engines AG (MTX:GR)

  • Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (MUV2:GR)

  • Porsche Automobil Holding (PAH3:GR)*

  • Panther SE (PUM:GR)*

  • Qiagen N.V. (QIA:GR)*

  • RWE AG (RWE:GR)

  • SAP SE (SAP:GR)

  • Sartorius AG Vz (SRT3:GR)*

  • Siemens AG (SIE:GR)

  • Siemens Energy AG (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 the 10 firms included September 2021

Other Major Stock Exchanges

Other major trading exchanges worldwide include:

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

Features

  • The DAX is an unmistakable benchmark for German and European stocks, listing major companies by liquidity and market capitalization, and an indicator of trends in Germany's economy.
  • The DAX is a German blue-chip stock market index that tracks the performance of the 40 largest companies trading on the Frankfurt Stock Exchange.
  • A couple of the globally recognized companies on the DAX incorporate Volkswagen, Bayer, BMW, and Adidas.
  • Xetra is an electronic trading system that gives the prices used to ascertain the DAX index.