The GER 40 (DAX): Germany's Top Stock Market Index

GER 40

The GER 40, (also known as DE40, DAX40, GER40, DAX, GDAXI), is a leading financial market index in Germany, tracking the performance of the country's largest companies by market capitalization on the Frankfurt Stock Exchange. In contrast to some peers, while being cap-weighted, the GER 40 is a total return index, meaning that the index calculation assumes all dividends paid by index constituents are reinvested. Investors can track the DAX's performance throughout the trading day, identifying potential trading opportunities based on price movements and market news.

Given the relatively low number of firms included within the index, it could be argued that it is not necessarily representative of the broader performance of the German economy, in a similar way to how the limited number of stocks in the US 30 makes it an unreliable barometer of US economic performance.

The index was first calculated in late-1987, with a base value of 1,000, and is currently calculated once per second based on electronic trade on the Xetra venue. The GER 40 was expanded from 30 to 40 members in Q3 2021, with various other index rules also tightened, largely in reaction to the Wirecard accounting scandal.

Understanding the DAX's historical performance through price charts can inform your trading style, whether it's short-term or long-term investment strategies. Staying updated on relevant market news is important for informed decision-making when considering the GER 40 or its constituent companies. Historical returns for the index, which are not a reliable indicator of future results, are shown below.

The weightings of individual index constituents, as of the time of writing, is as follows.