What is DAX?
DAX is the an European equity index which represent the 30 largest publicly listed German companies on Frankfurt Stock Exchange. It is the European equivalent of the Dow Jones Industrial index or the ASX 20 Index. A highly concentrated mega capitalisation index which includes the largest companies listed on the local exchange where individual company value is in the tens of billions of dollars.
Bayer is the largest company in the German Dax Index with a market capitalisation of more than $80 billion. The smallest company in the index is SDF with a market capitalisation of $4 billion.
DAX Index Performance
Chart above shows the return of the DAX 30 index performance year to date. It also shows the relative performance of the index compared to other major equity markets around the globe.
DAX Index Live Chart
DAX live quote chart above replicate the performance of the DAX index.
Dax 30 Companies
Companies in the DAX 30 index are spread out across multitude of sectors ranging from healthcare, financials to industrial automotives. It consists some of the most well known global brands such as BMW, Deutsch Bank, SAP and Merck.
|7||Deutsche Telekom||DTE||Telecommunication Services|
|10||Fresenius SE and Co KGaA||FRE||Health Care|
|19||Fresenius Medical Care AG and Co||FME||Health Care|
|21||Infineon Technolgies||IFX||Information Technology|
The list rank companies based on market capitalisation largest to smallest. The top 10 positions make up 65% of the total value of the index.
It is well known the Australian equity market is heavily concentrated on miners and financials. The construction of this index is more even where no one sector make up more than 20% of the index.
Consumer Discretionary is the largest sector, followed by financials then healthcare and industrials.
It is reflective of the broader German economy. A number of companies also represent the export powerhouse of the Germany. Their earnings are also a function movements in the Euro against the US dollar.
There are 2 ways investors can include Dax in the portfolio. Short term traders can use the Dax futures while long term investors can use listed exchange traded funds that track the day to day movements of the index. Since the futures contract and ETFs are listed in Europe. The value is priced in Euros.
DAX trading hours are the same as market trading hours. The future can be traded 24 hours a day while ETF is traded when the European stock market are open.