What Is the DAX?
The DAX (Deutscher Aktienindex) is Germany’s leading stock index. It tracks the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange — including SAP, Siemens and Allianz. One crucial quirk: the standard DAX is a performance index that assumes dividends are reinvested, which means it is not directly comparable to a price index such as the quoted S&P 500. We explain how the DAX is weighted, what makes it special, and how to invest in it through an ETF.
What is the DAX — explained simply
The DAX (short for Deutscher Aktienindex, the German stock index) is the benchmark index of the German stock market. It bundles the 40 largest and most heavily traded companies listed on the Frankfurt Stock Exchange and captures their combined share-price movement in a single number. When the DAX rises, Germany’s large corporations are doing well on average; when it falls, sentiment on the German market is subdued.
Until September 2021 the DAX contained only 30 members — since then it has been expanded to 40 companies to give a broader picture of the German economy. The index is operated by Deutsche Börse and its index provider STOXX.
The key quirk: the DAX is a performance index
The crucial point many people miss: the commonly quoted DAX is a performance index (Performanceindex). That means the dividends paid by its constituents are assumed to be reinvested and are factored into the index level. Most international indices — such as the frequently quoted S&P 500 — are price indices that exclude dividends.
The consequence: the DAX optically looks stronger because dividends are included — and it is therefore not directly comparable to a price index. To compare the DAX and the S&P 500 fairly, you have to compare like with like. There is also a less frequently quoted DAX Kursindex (price index) without dividends, but in the media the performance index is almost always the one being referenced.
How is the DAX weighted?
The DAX is weighted by free-float market capitalisation — that is, the freely tradable market value of each company. The more valuable a corporation, the more it influences the index. To stop any single company from dominating, a 10% cap applies to each constituent.
Major DAX members (selection, as of June 2026)
| Company | Sector |
|---|---|
| SAP | Software / Technology |
| Siemens | Industrials / Technology |
| Allianz | Insurance |
| Deutsche Telekom | Telecommunications |
| Munich Re | Reinsurance |
| Airbus | Aerospace |
How do I invest in the DAX?
You cannot buy the index itself — but you can track it through an ETF. A DAX ETF holds the 40 index constituents in the same weighting and therefore moves almost identically to the index. Two of the best-known and cheapest UCITS products are:
Common DAX ETFs (as of June 2026)
| ETF | ISIN | TER p.a. |
|---|---|---|
| iShares Core DAX UCITS ETF | DE0005933931 | 0.16% |
| Xtrackers DAX UCITS ETF | LU0274211480 | 0.09% |
The DAX covers only 40 companies from a single country, with a heavy weighting toward industrials and financials. Compared with a global index such as the MSCI World (around 1,400 stocks from developed markets), it is far less diversified. A pure DAX ETF is therefore a concentrated bet on the German economy — useful as a satellite holding, but riskier as the sole foundation for building wealth than a broadly diversified world ETF.
FAQ — What is the DAX? 2026
What is the DAX in simple terms?
The DAX (Deutscher Aktienindex) is Germany’s leading stock index. It tracks the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange — such as SAP, Siemens and Allianz — and combines their share-price movement into a single number. It is operated by Deutsche Börse and weighted by free-float market capitalisation, with a 10% cap on any single company.
Why is the DAX a performance index?
The commonly quoted DAX is a performance index because it assumes the dividends paid by its constituents are reinvested and factors them into the index level. Most international indices, such as the S&P 500, are price indices that exclude dividends. As a result, the DAX optically looks stronger and is not directly comparable to a price index. There is also a less frequently quoted DAX price index (Kursindex) that excludes dividends.
How many companies are in the DAX?
The DAX contains 40 companies. Until September 2021 it held 30 members; since then it has been expanded to the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange. They are weighted by free-float market capitalisation, with no single company allowed to make up more than 10% of the index.
How can I invest in the DAX?
You cannot buy the DAX itself, but you can track it through an ETF that holds the 40 index constituents. Well-known, low-cost UCITS products are the iShares Core DAX UCITS ETF (ISIN DE0005933931, TER 0.16%) and the Xtrackers DAX UCITS ETF (ISIN LU0274211480, TER 0.09%). Note that a pure DAX ETF is a concentrated bet on just 40 German companies and is less diversified than a world ETF.