DAX Stock Index: Definition and Member Companies

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DAX Stock Index: Definition and Member Companies

What is the DAX?

The DAX (Deutscher Aktien Index, also called GER40) is Germany’s primary blue‑chip stock index. It tracks the performance of 40 of the largest and most liquid companies traded on the Frankfurt Stock Exchange. Created in 1988, the DAX is widely used as a barometer of the German economy and a benchmark for European equities.

How the DAX is calculated

  • Weighting: Free‑float market‑capitalization methodology (companies’ market caps adjusted for shares available to public investors).
  • Price source: Prices used to calculate the index are taken from Xetra, the electronic trading system that handles the vast majority of Frankfurt Exchange volume.
  • Coverage: DAX constituents account for roughly 80% of the aggregate market capitalization traded on the Frankfurt Exchange.
  • Review and admission rules: The index undergoes regular reviews. Companies can be removed or added outside review dates if they fall below or exceed set ranking thresholds.

Special considerations

  • After‑hours/futures adjustment: The DAX is updated using futures prices for the next trading day even after the main exchange session has ended.
  • Membership criteria: The index prioritizes large, liquid companies; changes occur if companies slip in size/rank or if others rise into qualifying positions.
  • Historical change: The index expanded from 30 to 40 constituents in 2021 to broaden representation.

Representative sectors and examples

DAX companies span industries including automotive, chemicals, pharmaceuticals, financial services, industrials, technology, and consumer goods. Examples of globally recognized members:
– Volkswagen, BMW, Mercedes Benz Group (automotive)
– Bayer, Merck (pharmaceuticals/health)
– SAP, Infineon Technologies (technology)
– Allianz, Deutsche Bank (financial services)
– Adidas, Zalando (consumer/retail)

DAX constituents (alphabetical)

  • Adidas AG (ADS.DE)
  • Airbus SE (AIR.DE)
  • Allianz SE (ALV.DE)
  • BASF SE (BAS:DE)
  • Bayer AG (BAYN.DE)
  • Beiersdorf AG (BEI.DE)
  • BMW AG (BMW.DE)
  • Brenntag SE (BNR.DE)
  • Commerzbank AG (CBK.DE)
  • Continental AG (CON.GR)
  • Covestro AG (1COV.GR)
  • Daimler Truck Holding AG (DAI.GR)
  • Deutsche Bank AG (DBK.GR)
  • Deutsche Boerse AG (DB1.GR)
  • Deutsche Post AG (DPW.GR)
  • Deutsche Telekom AG (DTE.GR)
  • E.ON SE (EOAN.GR)
  • Fresenius SE & Co. KGaA (FRE.GR)
  • Hannover Rück SE (HNR1.DE)
  • Heidelberg Materials AG (HEI.DE)
  • Henkel AG & Co. KGaA (HEN3.GR)
  • Infineon Technologies AG (IFX.GR)
  • Mercedes Benz Group AG (MBG.DE)
  • Merck KGaA (MRK.GR)
  • MTU Aero Engines AG (MTX.GR)
  • Muenchener Rück AG (MUV2.DE)
  • Porsche AG (PAH3.GR)
  • Qiagen N.V. (QIA.GR)
  • Rheinmetall AG (RHM.DE)
  • 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)
  • Volkswagen AG (VOW3.GR)
  • Vonovia SE (VNA.DE)
  • Zalando SE (ZAL.GR)

How to gain exposure to the DAX

You cannot invest directly in an index, but you can gain exposure through:
– Exchange‑traded funds (ETFs) that track the DAX.
– Mutual funds or index funds designed to replicate DAX weightings.
– Derivatives (futures, options) tied to the DAX for institutional or advanced investors.

DAX vs. other major indices

The DAX is similar to other national blue‑chip indices (e.g., Dow Jones Industrial Average) in that it tracks large, influential companies. Differences include methodology (free‑float market cap vs. price weighting) and geographic/economic focus—DAX reflects Germany’s multinational export‑oriented economy.

Why the DAX matters

As a concentrated index of Germany’s largest publicly traded firms, the DAX provides:
– A quick read on investor sentiment toward Germany and major German multinationals.
– A benchmark for European equity performance.
– Signals often considered by policymakers, investors, and international markets when assessing economic trends.

Conclusion

The DAX is a key benchmark for German and European equities, combining liquidity and large‑cap representation through a free‑float market‑cap methodology. Investors seeking German market exposure can use ETFs, mutual funds, or derivatives that track the index.