DAX

The DAX is the leading barometer of sentiment in the German stock market. It comprises the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange, ranked by market capitalization. The DAX was introduced on July 1, 1988, with a starting value of 1'000 points as of December 31, 1987. The largest reform to date took place in 2021: The number of companies was increased from 30 to 40, and the quality criteria were tightened.

A distinctive feature is its design as a performance index: Unlike many other indices, dividend payments are reinvested for calculation purposes, which visually amplifies long-term growth.

The composition is broadly diversified but exhibits a traditional strength in the automotive, chemical, and industrial manufacturing sectors.

A direct comparison with the Swiss SMI (Swiss Market Index) reveals significant differences. While the DAX comprises 40 stocks, the SMI focuses on the 20 most important Swiss stocks. Furthermore, the SMI is a price index in which dividends are not factored into the price.