DAX30, what is it and which companies does it consist of?
The DAX30 is the most important and prominent index of Germany. The index is composed of 30 blue chip shares from the Frankfurter Wertpapierbörse: the Frankfurt stock exchange (FSE). It gives a good picture of the state of affairs regarding the German stock market. Read more about the composition of the DAX30 index in this blog.
DAX30 Composition – Which companies are in the German index?
As of July 5, 2021, the composition of DAX30 consists of the companies in the list below (source: Beursgorilla & LYNX ). The list is sorted alphabetically.
| # | Company | Sector |
|---|
| 1 | Adidas | Consumer goods |
| 2 | Allianz | Insurances |
| 3 | BASF | Chemistry |
| 4 | Bayer | Chemistry |
| 5 | Beiersdorf | Consumer goods |
| 6 | BMW | Automotive manufacturers and suppliers |
| 7 | Continental | Automotive manufacturers and suppliers |
| 8 | Covestro | Chemistry |
| 9 | Daimler | Automotive manufacturers and suppliers |
| 10 | Delivery Hero | Technology (IT) |
| 11 | Deutsche Bank | The bank |
| 12 | Deutsche Boerse | Financial institutions |
| 13 | German postal service | Retail |
| 14 | Deutsche Wohnen | Property |
| 15 | Deutsche Telekom | Telecommunications |
| 16 | E.ON | Utilities |
| 17 | Fresenius Medical Care | Health care |
| 18 | Fresenius SE | Health care |
| 19 | HeidelbergCement AG | Construction sector |
| 20 | handle | Consumer goods |
| 21 | Infineon | Technology (IT) |
| 22 | Linde | Chemistry |
| 23 | Merck KGaA | Health care |
| 24 | MTU Aero Engines | Industrial goods and services |
| 25 | Muench Reuckvers | Insurances |
| 26 | WE | Utilities |
| 27 | SAP | Technology (IT) |
| 28 | Siemens | Industrial goods and services |
| 29 | Volkswagen | Automotive manufacturers and suppliers |
| 30 | The people | Property |
The Importance of the DAX30
The DAX is a compilation of 30 large companies from the Frankfurt stock exchange. But why is this index so relevant? It has to do with the size of the German economy; this should certainly not be underestimated. For example, the German economy is the largest within the European Union and is fifth in the list of largest economies in the world. When you have a good picture of the state of affairs regarding the German economy, you will be better able to make well-considered investment decisions.
Calculation of the DAX30
The DAX contains 30 shares. A price level is then calculated from these shares. This is the price level of the DAX30. But how is this price calculated? You should know that the DAX is a capitalization-weighted index. This means that if you have a higher value on the stock exchange, you have a greater influence on the price of the DAX. In order to prevent too much influence, the general rule is that a share may not weigh more than 10% of the entire DAX.
You now know that the DAX30 is a capitalization weighted index. However, that does not mean that a company is eligible to be included in the DAX. The following criteria apply:
- Listed on the stock exchange for at least 3 years
- At least 15% of the stock market value must actually be traded on the stock exchange
- At a minimum, meet the Prime Standard transparency standards of the Frankfurt Stock Exchange
- Generating enough income in Germany to be able to speak of a company that somewhat represents the German economy
DAX composition adjustments
The composition of the DAX is revised once a year. This is done in September on the basis of data such as trading volume and market capitalization. In addition to this revision that takes place on an annual basis, a smaller revision has also been done every three months since March 2004 for a possible ‘Fast Entry’ or ‘Fast Exit’.
The DAX30 is the most prominent index in Germany; but there are also (smaller) variants. These are the Mid-Cap DAX (MDAX) and the Small-Cap DAX (SDAX). The words mid-cap and small-cap say something about the market capitalization of the shares included in the index. The composition of the MDAX and the SDAX is somewhat broader. For example, the MDAX has a composition of 60 shares and the SDAX a composition of 50 shares. In addition to these variants, there is also the TecDAX and the ÖkdoDAX. The TecDAX focuses on tech companies, while the ÖkdoDAX focuses on sustainable energy companies.
DAX30 index trading hours
The DAX is tradable during regular trading hours between 11:00 and 19:45. However, the German stock exchange also offers the possibility to trade the DAX outside of these hours. For example, a late DAX is calculated between 19:45 and 00:00 and an early DAX is calculated between 10:00 and 11:00.
Investing in the DAX30
Investing in the DAX30 can be done by buying individual shares that are in the index. You can also invest in the entire index by means of an ETF . Do you want to trade in the shorter term? Then you can also speculate on the index by using Derivatives. Consider how you want to invest and choose a suitable broker. Compare all brokers at Compareallbrokers.com.
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