DAX

DAX, short for Deutscher Aktienindex, is Germany's leading equity-market benchmark. It tracks the performance of 40 major German companies admitted to the Prime Standard segment and traded on the Frankfurt Stock Exchange, using data from the Xetra electronic trading venue. The index is operated within the Deutsche Börse index family and is widely used as a reference point for German large-cap equities, exchange-traded products, derivatives, portfolio performance, and financial reporting. The index was introduced with a base value of 1,000 on 30 December 1987. Its most commonly quoted form is the performance index, which assumes that dividends are reinvested. This construction makes the DAX a total-return benchmark and distinguishes it from many prominent international indices that are generally quoted as price indices. Deutsche Börse also publishes a price version of the DAX, which excludes the reinvestment of dividends and is therefore more directly comparable with conventional price-only benchmarks. DAX selection is based principally on the size and liquidity of eligible companies, measured through free-float market capitalization and order-book volume. The index has historically served as a compact representation of Germany's largest listed businesses, although its limited number of constituents means that it should not be treated as a complete measure of the German economy. Its sector composition can also vary over time as industries expand, contract, or gain and lose representation among the largest listed issuers. For much of its history, the benchmark contained 30 companies and was commonly referred to as the DAX 30. Deutsche Börse announced in November 2020 that the index would be expanded to 40 constituents and that its eligibility and governance rules would be tightened. The changes were implemented in the third quarter of 2021. The reform followed the Wirecard accounting scandal, which exposed weaknesses in the oversight and removal procedures surrounding a major index constituent and prompted a broader review of index rules. The DAX is supported by related instruments and calculation variants. L-DAX indicates performance during Frankfurt floor trading after the Xetra session, while L/E-DAX extends coverage into late and early trading periods. Eurex offers futures and options linked to the index, including FDAX futures and ODAX options. Since 1 January 2006, Xetra technology has enabled the index to be calculated every second during its regular calculation period. As a financial benchmark rather than a consumer product or operating corporation, DAX has no conventional headquarters, founder, product portfolio, chief executive, or standalone share listing. Its significance comes from its role in measuring German large-cap equity performance and providing a recognizable basis for investment products, derivatives, market commentary, and comparisons with benchmarks such as the UK's FTSE 100 and the United States' Dow Jones Industrial Average.

The DAX was established as Germany's principal large-cap stock-market benchmark with a base date of 30 December 1987 and a starting value of 1,000. Its name is an abbreviation of Deutscher Aktienindex, meaning German stock index. The benchmark was created to provide a concise, regularly calculated measure of the performance of major companies traded on the Frankfurt Stock Exchange. The index is calculated from prices on Xetra, Deutsche Börse's electronic trading venue. Its methodology combines the scale and liquidity of eligible companies, with constituent selection linked to free-float market capitalization and order-book volume. The resulting portfolio is intended to represent the most significant companies in the Prime Standard segment, although its small constituent count means that it cannot fully capture the breadth or condition of the German economy. The principal DAX calculation is a performance index. Dividends paid by constituent companies are treated as reinvested, so the index reflects both share-price movement and dividend income. Deutsche Börse also maintains a price-index version that excludes dividends. The distinction is important when comparing the DAX with overseas benchmarks, many of which are more commonly presented as price indices. The index developed into an important reference for German and European equity markets. It became a standard underlying for investment funds, exchange-traded products, structured products, futures, options, and financial commentary. Eurex provides derivatives linked to the benchmark, including FDAX futures and ODAX options. The broader DAX index family also includes indicators designed to extend market observation beyond the core Xetra session. L-DAX is based on Frankfurt floor trading after the Xetra market closes, while L/E-DAX covers specified late-evening and early-morning periods. Technology has also shaped the index's operation. Since 1 January 2006, Xetra systems have calculated the DAX every second during the relevant trading period, allowing it to serve as a continuously updated market indicator rather than a once-daily statistical measure. For most of its history, the benchmark contained 30 companies and was commonly identified as the DAX 30. Its governance came under scrutiny after Wirecard, a major German payments company and former DAX constituent, became embroiled in a major accounting scandal and subsequently collapsed. In response, Deutsche Börse announced in November 2020 that the index would be expanded to 40 members and that the rules governing eligibility, financial reporting, and constituent removal would be strengthened. The DAX 40 configuration took effect in the third quarter of 2021. Today, DAX remains an active benchmark administered within the Deutsche Börse ecosystem. It is often compared with the UK's FTSE 100 and the United States' Dow Jones Industrial Average, but its methodology and dividend treatment differ from those of many international peers. As an index, it has no standalone corporate management or consumer-facing product range; its principal function is to measure and facilitate exposure to German large-cap equities.

1. 2021DAX 40 introduced

   The expansion to 40 constituents took effect in the third quarter of 2021.

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2. 2020Expansion and rule reform announced

   Deutsche Börse announced plans to increase the number of constituents from 30 to 40 and tighten index rules.

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3. 2015Performance index exceeds 12,000

   The DAX performance index first closed above 12,000 on 16 March 2015.

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4. 2006Second-by-second calculation begins

   Xetra technology began calculating the DAX every second from 1 January 2006.

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5. 1987DAX established with a base value of 1,000

   The benchmark's base date was set as 30 December 1987, with an initial base value of 1,000.

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Germany's flagship large-cap equity benchmark and one of Europe's most widely followed national stock-market indices.

• DAX performance indexTotal-return equity index1987

  The primary and most frequently quoted DAX version. It measures the performance of eligible large-cap German companies while treating dividends as reinvested, thereby combining capital appreciation with dividend income in its total-return calculation.

• DAX price indexPrice equity index

  A version of the DAX that measures constituent share-price movements without reinvesting dividends. It provides a comparison point with price-only stock-market indices commonly quoted in other countries.

• L-DAX and L/E-DAXExtended-hours index indicators

  These related indicators extend observation of German blue-chip market performance beyond the main Xetra session. L-DAX is based on Frankfurt floor trading after the regular Xetra period, while L/E-DAX covers specified late-evening and early-morning intervals.

• DAX futures and optionsIndex derivatives

  Eurex-listed derivatives provide instruments for hedging, speculation, and portfolio exposure to DAX movements. The principal contracts identified in the reference material are FDAX futures and ODAX options.

• 2021Implement the DAX 40 configurationGeneration change

  The reform announced in 2020 required a formal change to the benchmark's constituent count and operating rules.

  What changed. The index moved from a 30-member structure to a 40-member structure during the third quarter of 2021.

  Aftermath. DAX 40 became the standard large-cap benchmark configuration while the index continued to support performance and price variants.

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• 2020Expand the benchmark from 30 to 40 companiesStrategy

  The existing 30-company structure was reviewed amid concerns about representation and index governance, particularly following the Wirecard accounting scandal.

  What changed. Deutsche Börse announced an increase to 40 constituents and a set of stricter requirements covering eligibility, reporting, and index administration.

  Aftermath. The revised DAX 40 structure was implemented in the third quarter of 2021.

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• 2020Wirecard scandal and index-governance scrutinyControversy

  Wirecard's accounting scandal and collapse exposed concerns about the safeguards governing a major DAX constituent. The episode contributed to Deutsche Börse's subsequent expansion of the index and tightening of its eligibility and governance rules.

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• 2021DAX expansion takes effect

  The DAX began operating with 40 constituents in the third quarter of 2021, completing the structural reform announced the previous year.

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• 2020Deutsche Börse announces expansion of DAX from 30 to 40 constituents

  Deutsche Börse announced that the benchmark would be enlarged from 30 to 40 companies and that its eligibility, reporting, and governance requirements would be strengthened.

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• 2015DAX performance index closes above 12,000 for the first time

  The DAX performance index recorded its first close above the 12,000-point level on 16 March 2015.

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1. DAX