What is the DAX 30 Index?

The DAX 30 index is the most popular stock index on the German stock exchange. One of the key reasons why it is so famous is that it portrays the German economy and, due to the presence of some of the most powerful businesses in the world, traders find it extremely useful.

About the DAX 30 index

The renowned DAX 30 index contains 30 of the most prominent technology and manufacturing firms on the German stock markets, hence its title. It is also important to note that this index represents roughly 75% of the combined value of the listed firms. The Deutsche Börse Group publishes its value on a daily basis. The Xetra electronic exchange attempts to quantify the value using its rates.

In fact, DAX means Deutscher Aktienindex, indicating the German stock index. Other titles for this index are DE30 and GER30. It was introduced back in 1988 with a base value of 1,163. Interestingly, approximately half of the members of the index still exist today.

How to calculate it

Market cap plays a major part in the estimation of the DAX 30 index. Even so, the weight of each entity is capped at 10%. The index does not include limited shares in the estimation of the market value of each firm.

In the event that the market cap of a firm falls out of the 45 leading firms, the company is excluded from the index. As far as inclusions are concerned, a business is taken into account when its market value slips within that of the 25 leading firms.

The biggest stocks currently in the DAX 30 index are SAP AG, Allianz SE, Linde Plc, Siemens AG, and Bayer AG. These 5 firms account for 44% of the overall index. The top 10 firms account for 66% of the total. The main 15 stocks account for about 80 percent of the total.

FINACADEMY is a platform run by a team of professionals with over 20 years of experience who have one goal in mind: to educate both beginners and experienced people in the art of sophisticated trading and investing. This academy offers courses and e-books for those who really want to start learning how to trade, including crypto, Forex, stock market, indices, and CFD trading, among others.