Tag: DAX

DAX (Deutscher Aktienindex) is Germany’s premier blue-chip stock market index, tracking 40 major listed companies on the Frankfurt Stock Exchange. As Europe’s second-largest equity benchmark by market cap (€1.5 trillion), it serves as a barometer for Eurozone economic health and a gateway for global investors seeking exposure to German industrial giants like SAP, Siemens, and Volkswagen.

The DAX operates as a performance index (reinvesting dividends) with prices calculated in real-time via Xetra electronic trading. Constituents are weighted by free-float market cap, reviewed quarterly. Average daily turnover exceeds €6 billion, with derivatives (futures/options) amplifying liquidity. The index correlates strongly with EUR/USD fluctuations and ECB policy shifts.

**Key Applications**
1. **Benchmarking**: Institutional investors use DAX as a performance yardstick for European equity funds.
2. **Derivatives Trading**: DAX futures (FDAX) are among the world’s most traded equity index derivatives.
3. **ETF/Index Funds**: Over €50 billion is parked in DAX-tracking passive products (e.g., iShares DAX UCITS ETF).