The ger 30 or DAX Stock Market Index is recognized for consisting of several of Germany’s best-performing companies.
They are certified to trade on the Frankfurt Stock Exchange and this particular stock market index is formatted in the same way that the S&P 500 is in the U.S.
This is a cap-weighted index fund that measures the overall performance of each of these companies.
Contents
- 30 Companies in the DAX Stock Market Index
- Will the DAX be re-balanced as it expands to 40 Companies?
- Which companies are being added to the DAX Stock Market Index Fund?
- Conclusion
No company in this index fund holds more than 10% of the overall weight of the index fund.
It was formed back in 1988 and has been one of the most stable stock market index funds in Germany for the last several decades.
In surprising recent news, the DAX is actually expanding to the DAX 40 in September of 2021 to allow 10 additional companies to be listed on the stock market index fund.
30 Companies in the DAX Stock Market Index
Here is the list of each company that is currently cap-weighted in the DAX Stock Market Index.
Each of these companies cannot hold a weight greater than 10% of the overall index fund.
At this point in time, there are still more than a dozen companies in the DAX that were there when it originally was created back in 1988.
Airbus
Adidas
Allianz
BASF
Bayer
Beiersdorf
Bayerische Motoren Werke (BMW)
Brenntag
Continental
Covestro
Daimler
Delivery Hero
Deutsche Boerse
Deutsche Bank
Deutsche Post
Deutsche Telekom
E.ON
Fresenius Medical Care
Fresenius SE & Co
HeidelbergCement
HelloFresh
Henkel AG & Co
Infineon Technologies
Linde PLC
Merck KGaA
MTU Aero Engines
Muenchener Rueckversicherungs-Gesellschaft
Porsche Automobil Holding
Puma
Qiagen
RWE
SAP
Sartorius
Siemens
Siemens Energy
Siemens Healthineers
Symrise
Vonovia
Volkswagen
Zalando
Top Cap-Weighted Companies in the DAX
Let’s take a look at some of the companies that hold the most influence in the DAX stock market index fund.
Bayer is a famous company that has been listed in the DAX for a lengthy period of time.
Bayer is followed by BASF and Siemens, both holding a significant portion of the index fund’s overall weight.
The next three companies are SAP, Allianz, and Daimler.
Deutsche Bank and Deutsche Telekom are the next two highest-ranked companies in the DAX Stock Market Index.
Linde is another famous company admitted into the DAX and currently holds a ranking well inside of the top 10.
Companies Weighted Below 4% in the DAX
All remaining companies that are currently admitted in the DAX hold a weight lower than 4%.
These companies include Munich Re and Volkswagen.
Munich Re is weighted at 3.4% and Volkswagen is weighted at just below that at a value of 3.27%.
BMW is also listed in the DAX with a weight of 3.17%.
BMW has been in the DAX since the very beginning and is considered to be one of the original companies ever listed in this particular stock market index fund.
We are now into the middle of the pack in terms of the companies listed in the DAX.
Deutsche Post is ranked 14th with 2.61% of the index fund’s weight.
Just behind is another famous company, Adidas, with 2.48% of the index fund’s weight.
Companies Weighted Below 2% in the DAX
The bottom 15 companies in the DAX are weighted below 2%.
We’ll start by mentioning RWE, Henkel, and Fresenius, all holding approximately 1.9% weight.
Continental and Deutsche are ranked slightly lower at 1.46% and 1.39%.
It’s worth noting that Continental is another one of the companies that has been admitted since the very beginning of the DAX.
Merck, Lufthansa, and Heidelberg Cement are all weighted at approximately 1.1%, while Infineon Technologies is the highest-ranked company in the DAX that holds a weight lower than 1.0%.
Infineon Technologies is weighted at just 0.98% and holds an overall rank of 25th in the DAX.
Beiersdorf holds a similar weight of 0.97%, narrowly ranking lower than Infineon Technologies.
ThyssenKrupp, K + S, Commerzbank, and Lanxess are the final four companies holding weights below 0.8% of the DAX Stock Market Index Fund.
Will the DAX be re-balanced as it expands to 40 Companies?
It’s certainly possible that many of the cap-weighted companies in this list will be rebalanced in the near future as the DAX Index Fund prepares to expand to 40 companies.
This means that the overall performance of the DAX could change depending on how the ten new companies are balanced.
Which companies are being added to the DAX Stock Market Index Fund?
The ten new companies are Airbus, Zalando, Siemens Healthineers, Symrise, Hello Fresh, Porsche, Sartorius, Brenntag, Puma, and Qiagen.
The changes took effect in September of 2021 and will have a lasting impact on the future of the DAX Stock Market Index Fund.
New qualification rules have also been added, making it much tougher to be included in the DAX index fund.
This likely stems from the fact that one of the index fund’s major companies, Wirecard, had a major scandal.
Many of the new rules come from lessons that were learned from that scandal.
The overhaul should set into motion a lot of potential for investors in the future.
Each of these new companies has earned the right to be added into the DAX Stock Market Index Fund and their addition should create a diverse investing environment that provides more opportunities to investors.
Conclusion
The DAX Stock Market Index Fund has been around for more than three decades and only recently announced a major overhaul to its design.
The addition of ten companies is a significant adjustment that has its pros and cons.
The good news is that the new qualifying rules are stricter to prevent certain scenarios from occurring and harming investors.
Additional reporting requirements have also been added to regulate the companies that are admitted into the DAX.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
