DAX Index

DAX Index Overview

The DAX, or Deutscher Aktien Index, is a key benchmark for Germany's economy. It includes the top 40 largest and most actively traded companies on the Frankfurt Stock Exchange, making it a crucial indicator of the country’s corporate health and market performance.

DAX Performance Index Accurate Reflection of Market Value

This method ensures that the DAX performance index accurately reflects the stock market value of the included companies. The DAX is widely recognized as an important indicator of Germany's economic health and overall DAX share market performance.

Calculation and Weighting

Index prices for the DAX are derived from the Xetra electronic trading system, a leading platform for securities trading in Germany. The DAX index stock weightings are determined using a combination of free-float market capitalization and average trading volume, which provides a vast representation of each company's influence on the index.

Historical Context and Expansion

The DAX began with an index level of 1,163 points and has increased since then. Currently, the companies in the DAX represent around 80% of the Frankfurt Exchange's market capitalization. In September 2021, the index expanded from 30 to 40 companies to better reflect market changes and provide a broader perspective on Germany's corporate sector.

Importance of the DAX Stock Exchange Index

As the Deutscher Aktien Index, the DAX stock market index plays an important role in evaluating Germany's economic health. Currently, the DAX index live data is displaying real-time fluctuations, reflecting the market's dynamic nature. One unique feature of the DAX index is its incorporation of futures prices for the following day's trading, even after the primary exchange has closed.

Regular Reviews and Adaptability

Regular reviews are conducted to adjust the DAX index composition, removing companies that fall out of the top 45 and adding those that break into the top 25, thereby maintaining the index's relevance and accuracy over time.

The Role of the Xetra System

Today, the vast majority of shares traded on the Frankfurt Exchange are executed through the Xetra system, underscoring the importance and efficiency of electronic trading. The DAX share bazar offers insightful viewpoints on the state of the German economy. Nearly all of the 40 DAX member stocks are actively traded on this platform, reflecting the evolution and modernization of Germany's financial markets.