DAX Stock Index: Definition and Member Companies

By
James Chen
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James Chen, CMT is an expert trader, investment adviser, and global market strategist.

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Updated June 14, 2024
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JeFreda R. Brown
Dr. Brown
Reviewed by JeFreda R. Brown
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Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.
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What Is the DAX Stock Index?

The DAX stock index is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Stock Exchange. The DAX uses a free-float methodology to calculate its weightings. It was created in 1988 with a starting index level of 1,163 points. DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange. The index was historically comprised of 30 companies but was expanded to 40 in 2021.

Key Takeaways

  • The DAX is a German blue-chip stock market index that tracks the performance of the 40 largest companies trading on the Frankfurt Stock Exchange.
  • Xetra is an electronic trading system that provides the prices used to calculate the DAX index.
  • The DAX is a prominent benchmark for German and European stocks, listing major companies by liquidity and market capitalization, and an indicator of trends in Germany's economy.
  • A few of the globally recognized companies on the DAX include Volkswagen, Bayer, BMW, and Adidas.

Understanding the DAX Stock Index

The DAX index tracks 40 large and actively traded German companies. It is considered by many analysts to be a gauge of Germany's economic health. The companies listed in the DAX are multinational corporations that influence both Germany's economy and the global economy at large. The success of these companies has greatly contributed to what is known as the "German economic miracle" or Wirtschaftswunder, a term that describes Germany's rebirth after World War II.

The companies in the DAX index span a wide range of industries. For example:

  • Adidas AG develops, manufactures, and markets popular athletic footwear, apparel, and equipment.
  • Allianz SE is a global financial services company that focuses on providing customers with insurance and asset management products
  • Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products

The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume.

The DAX is also known as the Deutscher Aktien Index or the GER40.

Special Considerations

Unlike most indices, the DAX is updated with futures prices for the next day, even after the main stock exchange has closed. Changes are made on regular review dates, but index members can be removed at any time if they no longer rank in the top 45 largest companies or added if they break the top 25.

The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a high adoption rate for the stocks of the 40 DAX members.

As a blue-chip stock market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large, publicly owned companies.

DAX Stock Index Components

The following is a list of the companies listed on the DAX. This list, in alphabetical order, is updated as of June 14, 2024:

  • Adidas AG (ADS.DE)
  • Airbus SE (AIR.DE)
  • Allianz SE (ALV.DE)
  • BASF SE (BAS:DE)
  • Bayer AG (BAYN.DE)
  • Beiersdorf AG (BEI.DE)
  • BMW AG (BMW.DE)
  • Brenntag SE (BNR.DE)
  • Commerzbank AG (CBK.DE)
  • Continental AG (CON.GR)
  • Covestro AG (1COV.GR)
  • Daimler Truck Holding AG (DAI.GR)
  • Deutsche Bank AG (DBK.GR)
  • Deutsche Boerse AG (DB1.GR)
  • Deutsche Post AG (DPW.GR)
  • Deutsche Telekom AG (DTE.GR)
  • E.ON SE (EOAN.GR)
  • Fresenius SE & Co. KGaA (FRE.GR)
  • Hannover Rück SE (HNR1.DE)
  • Heidelberg Materials AG (HEI.DE)
  • Henkel AG & Co. KGaA (HEN3.GR)
  • Infineon Technologies AG (IFX.GR)
  • Mercedes Benz Group AG (MBG.DE)
  • Merck KGaA (MRK.GR)
  • MTU Aero Engines AG (MTX.GR)
  • Muenchener Rück AG (MUV2.DE)
  • Porsche AG (PAH3.GR)
  • Qiagen N.V. (QIA.GR)
  • Rheinmetall AG (RHM.DE)
  • RWE AG (RWE.GR)
  • SAP SE (SAP.GR)
  • Sartorius AG Vz (SRT3.GR)
  • Siemens AG (SIE.GR)
  • Siemens Energy AG (ENR.GR)
  • Siemens Healthineers AG (SHL.GR)
  • Symrise AG (SY1.GR)
  • Volkswagen AG (VOW3.GR)
  • Vonovia SE (VNA.DE)
  • Zalando SE (ZAL.GR)

DAX Stock Index vs. Other Stock Indices

How does the DAX stack up against other major world indices? The chart below highlights some of their characteristics.

  DAX S&P 500 Dow Jones Industrial Average (DJIA)  Nasdaq Composite  FTSE 100 S&P/TSX Composite Hang Seng
Components  40 500 30  2,500+  100 222 82
Stock Exchange  Frankfurt Stock Exchange NYSE and Nasdaq NYSE and Nasdaq Nasdaq London Stock Exchange (LSE) Toronto Stock Exchange (TSX) Hong Kong Stock Exchange
Weighting Method Market cap weighted Float-adjusted market cap weighted Price weighted Market cap Free-float capitalization Float-adjusted market cap weighted Free float market cap-weighted 

How Can I Invest in the DAX?

While you can't invest directly in the DAX, there are several ways you can choose other investment vehicles that track its performance. For instance, you may invest in exchange-traded funds (ETFs) that are specifically designed to mimic its performance or mutual funds that contain the same companies that are listed in the DAX with their respective weightings.

What Does the DAX Measure?

The DAX is a stock market index that measures the performance of Germany's 40 largest companies. The index's components represent almost 80% of the Frankfurt Stock Exchange's aggregate market capitalization.

Why Is the DAX So Important?

The DAX is an important index because it measures the performance of the largest 40 publicly-traded companies in Germany. As such, it is considered a bellwether or barometer of the German economy.

The Bottom Line

The DAX is a stock market index. It is composed of the 40 largest companies in Germany that trade on the Frankfurt Stock Exchange. Like most stock market indices, it is considered a bellwether of the German economy, which is why analysts and investors look closely at how it performs. If the index rises, it typically indicates the economy is doing well. But, when it drops, it may mean that investors should prepare for a rough economic patch.

Article Sources
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  1. Deutsche Börse Group. "DAX."

  2. Deutsche Börse Group. "DAX Welcomes Ten New Members."

  3. Deutsche Börse Group. "DAX – Benchmark and Barometer for the German Economy."

  4. Boerse Frankfurt. "DAX."

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