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…
