DAX 40 composition on the stock market in

The DAX 40 stock market index is one of the most followed benchmarks by investors in Europe and worldwide. In this article, we invite you to discover in detail the composition of the DAX 40 with the 40 stocks from listed companies that appear there, but also some explanations concerning the operation, calculation and evolution of this index and the ways of invest in its price or the price of its shares.

Composition of the DAX 40 – DAX 40 Values ​​List

No.	Action	Reviews	Sector	Weight in the index
1	BAYER	Buy BAYER Stock	Pharmacy and Chemistry	8.95%
2	SAP	Buy SAP Stock	Software	8.91%
3	BASF	Buy BASF Stock	Chemistry	8.30%
4	ALLIANZ	Buy ALLIANZ Stock	Insurances	7.84%
5	DAIMLER	Buy DAIMLER Stock	Conception	7.18%
6	DEUTSCHE TELECOM	Buy DEUTSCHE TELEKOM Stock	Communications	5.16%
7	ADIDAS	Buy ADIDAS Stock	Sports equipment and clothing	3.44%
8	FRESENIUS	Buy FRESENIUS Stock	Health	3.07%
9	DEUTSCHE POST	Buy DEUTSCHE POST Stock	Logistics	3.01%
10	LINDE	Buy LINDE Stock	Industrial gases	2.90%
11	MUNICH RE	Buy MUNICH RE Stock	Insurances	2.86%
12	BMW	Buy BMW Stock	Conception	2.71%
13	VOLKSWAGEN	Buy VOLKSWAGEN Stock	Conception	2.57%
14	DEUTSCHE BANK	Buy DEUTSCHE BANK Stock	Bank	2.49%
15	CONTINENTAL	Buy CONTINENTAL Stock	Conception	2.16%
16	HENKEL	Buy HENKEL Stock	Consumer goods and chemicals	2.14%
17	INFINEON TECHNOLOGIES	Buy INFINEON TECHNOLOGIES Stock	Semiconductors	2.05%
18	SIEMENS	Buy SIEMENS Stock	Industry, electronics	10.46%
19	FRESENIUS MEDICAL CARE	Buy FRESENIUS MEDICAL CARE Stock	Health	1.69%
20	VONOVIA	Buy VONOVIA Stock	Real Estate	1.43%
21	E.ON	Buy E.ON Stock	Energy	1.40%
22	DEUTSCHE BOERSE	Buy DEUTSCHE BOERSE Stock	Securities	1.37%
23	MERCK	Buy MERCK Stock	Pharmacy	1.36%
24	HEIDELBERG CEMENT	Buy HEIDELBERG CEMENT Stock	Construction	1.34%
25	THYSSENKRUPP	Buy THYSSENKRUPP Stock	Industry, manufacturing	1.05%
26	PROSIEBENSAT1MEDIA	Buy PROSIEBENSAT1MEDIA Stock	Media	0.92%
27	COMMERZ BANK	Buy COMMERZBANK Stock	Bank	0.91%
28	BEIERSDORF	Buy BEIERSDORF Stock	Consumer goods and chemicals	0.88%
29	DEUTSCHE LUFTHANSA	Buy DEUTSCHE LUFTHANSA Stock	Aviation	0.73%
30   31   32   33   34   35   36   37   38   39   40	RWE   AIRBUS   BRENNTAG   HELLOFRESH   SYMRISE   PUMA   QIAGEN   SARTORIUS   Siemens Healthinners   ZALANDO   Porsche Automobile Holding	Buy RWE Stock   Buy AIRBUS Stock   Buy BRENNTAG Stock   Buy HFG Stock   Buy SYMRISE Stock   Buy PUMA Stock   Buy QIAGEN Stock   Buy SARTORIUS Stock   Buy SHL Stock   Buy ZALANDO Stock   Buy Porsche Stock Automobile Holding	Energy   Aeronautics   Distribution   Distribution   Conception   Conception   Selling   Supplier   medical technology   Online sales   Automobile construction	0.73%

How to Invest in the Composition of the DAX 40

It is of course possible to invest in the DAX 40 as well as in the values ​​that make up its composition. To do this, we recommend that you first register on a secure trading platform suitable for trading on the stock market such as the platform eToro which we recommend here. We therefore invite you to discover now a complete tutorial to start your investments.

Why Trade the Composition of the DAX 40 in

Trading the DAX 40 presents many advantagesvantages with regard to the values ​​which are part of its composition but also according to other criteria which we invite you to discover here.

A Diverse and Representative Composition

First of all, and as you have seen with the composition of the DAX 40 that we presented to you above, it should be noted that this stock market index is particularly diversified and offers the possibility of investing in different sectors including the automotive sector, health, banking, industry or even chemicals.

The DAX 40 index alone represents nearly 80% of the total market capitalization of the German financial center. In addition, a capping system has been put in place with the aim of ensuring that none of the stocks that make up the DAX 40 index can dominate this index.

High Liquidity of the Index and its Composition

Liquidity is also an important element when investing in the stock market, whether on stock market indices or on stock market shares. The DAX 40 is currently one of the most traded benchmark stock indices in the world. Each year, several million options contracts on indices and several tens of millions of futures contracts are traded on this asset.

The same is true for the values ​​that make up the DAX 40 and which also offer attractive liquidity allowing rapid execution of buy and sell orders.

Clear Rules and a Transparent Methodology

The calculation of the DAX 40 stock index based on its composition is also transparent and has been based on easy-to-understand rules and guidelines for stock market participants.

This concerns in particular the data related to the weighting of this index according to the shares with the amount of the share capital or the number of floating securities as we will see below. These rules are also updated quarterly and investors simply need to adjust their portfolio on these dates.

Summary of DAX 40 Composition Characteristics

Before trading on the DAX 40 or on one of its stocks, here is a summary of the main characteristics of this index:

• Creation – The DAX 40 was created on December 30, 1987. The first quotation took place with 1 basis points.
• Stocks – The composition of the DAX 40 index includes the largest German companies according to several criteria.
• Weighting – The weighting of the DAX 40 index is based on various elements, mainly market capitalization. The return reported here is the total return, ie it includes both price appreciation and corporate dividends.
• Representativeness – The companies that make up the DAX 40 have evolved over time and since its creation with the aim of best representing the development of the various German business sectors. Several companies present on the index when it was created are no longer part of it today, such as MAN, Mannesmann, Veba or Viag, and have left it following mergers, takeovers or bankruptcies and other events.
• Sectors – Companies listed on the DAX 40 operate in various business sectors in order to best represent the German economy. These include the chemical, automotive, industrial, pharmaceutical and health sectors.

DAX 40 – Definition

The DAX 40 is currently the benchmark stock index for the German economy. The definition of DAX 40 in German is Deutscher Aktien Index. Note here that the DAX 40 is also today the most important European stock market index. The DAX 40 therefore aims to reflect the economic health of Germany by integrating into its calculation the 40 largest companies listed on this financial center.

Objective of the DAX 40

Thus, the DAX 40 aims to represent in real time the evolution of the German economy through the 40 largest capitalizations in the country. The companies that are part of this index are in fact listed on the Frankfurt Stock Exchange, which is the leading stock exchange in Germany.

Thanks to the DAX 40 index, we therefore obtain precise visibility of the performance of these companies and a good overview of the solidity of the German economy.

The companies that make up the DAX 40 index currently represent between 75 and 80% of the total trading volume of the Frankfurt stock exchange and cover all of Germany's predominant business sectors. It is also interesting to note that 17 of these 40 companies have been part of the index since its inception.

How DAX 40 Companies Are Selected

The companies that make up the DAX 40 are chosen above all according to their market capitalization but also through their liquidity which is linked to the volume of transactions.

To enter the DAX 40, a company must also be listed on the Deutsche Börse Prime Standard market. The composition of the index is officially revised once a year, in September, but the committee of the Frankfurt Stock Exchange meets every quarter in order to decide on the exit or entry of companies within this index. reference stock exchange.

To decide on the integration or exclusion of a company from this index, the committee bases itself on several fundamental rules:

• A company that ranks below the Prime Standard's 45 largest market capitalizations is immediately and automatically removed from the index.
• A company that ranks first in the top 25 capitalizations of this same market is automatically included in this index.
• To be included in the index, a company must maintain a rotation in its order book in the Xetra trading system and on the Frankfurt stock exchange for at least one year.
• The free float market capitalization (capitalization of securities available and traded on the market) must also be greater than 10%. This free-float method, however, excludes blocked shares such as shares held by company directors.
• Companies included in this index must also have their securities listed on the Prime Standard segment of the Deutsche Börse, which is a segment regulated by the European Union of this market.
• The headquarters of these companies must be located in Germany and foreign companies must be present in the European Union or in an EFTA State or European Free Trade Association.
• Finally, these companies must be traded continuously on the Xetra platform for a minimum of 30 days after the date of their first listing.

A quarterly review is carried out by the committee of experts which then decides whether certain of the companies present should leave the index and be replaced by others, according to the market capitalization data.

Other DAX Indices

In addition to the DAX 40, the family of DAX indices includes other sub-indices as follows:

• The MDAX – The MDAX or Mid-Cap DAX is an index created in January 1996 and which is composed of the 60 companies listed just after those of the DAX 40 in terms of market capitalization and transaction volumes.
• The SDAX – The SDAX or Small-Cap DAC is an index created in June 1999 and composed this time of the 70 companies listed on the regulated market of the Frankfurt Stock Exchange, coming after the MDAX in terms of capitalization and liquidity.
• The TecDAX – Finally, the TecDAX index is an index created in 2003 and which includes 30 stocks from the technology sector. These stocks rank just below those that are part of the composition of the DAX 40 index in terms of market capitalization and trading volume.

Conclusion: Should you invest in the Composition of the DAX 40?

Ultimately and in view of the information communicated in this article, it appears particularly interesting to invest online in the values ​​of the DAX 40. In fact, the composition of the DAX 40 index is full of companies with very promising performances and which can allow you to to generate significant profits. Note that with CFDs from brokers like eToro ou Vantage FX, you will also have the possibility of investing directly in the price of the DAX 40 index in addition to investing in the stocks that make it up.

Are you looking for a trading account that will allow you to trade the DAX 40 and its constituent companies? Leave us a message in the comments!

❓ What is the DAX 30?

The DAX 40 is a benchmark stock market index for the German market. It includes in its composition the 40 most important companies listed on the Prime Standard segment of the Deutsche Börse in terms of capitalization and liquidity. The DAX 40 thus aims to reflect as accurately as possible the health of the German economy and its evolution over time.

⏰ What are the DAX Trading Hours?

If you wish to trade on the price of the DAX 40 or speculate on the price of one of the 40 values ​​that enter into its composition, you can do so during the usual opening hours of the German Stock Exchange in Frankfurt. Thus, the trading hours of the DAX 40 and its shares on the Stock Exchange are from 9 a.m. to 17 p.m. during working days, ie from Monday to Friday. The Bourse is also closed on public holidays.

Who Can Invest in the DAX?

While stock market investment was once reserved for professional investors, it is now accessible to all investors who wish, including individuals. Indeed, by simply creating an online trading account with a broker, you will have access to derivative products such as CFDs which will allow you to take a position up or down on the price of this index or on the course of one of the 40 companies that make it up.

How is DAX Calculated?

The listing of the DAX 40 stock index takes place continuously on the German stock market. The calculation of the price of this index takes into account the capitalization of the companies that make it up but also the dividends and bonuses paid to shareholders which are reinvested in the overall capitalization. This is a feature of this stock market index which does not apply to other major European indices such as the CAC 40 for example. It is also important to note that the price calculation of the DAX 40 index is done automatically through the Xetra trading platform.

Why Invest in the DAX 40 Rather than in Individual Securities?

Investing in the price of the DAX 40 and not in individual stocks presents certain advantages.vantages and in particular the fact of being able to bet on the economy of a country, here Germany. It is therefore not necessary to take an interest in the histories of the companies that make it up to successfully anticipate certain signals and future trends in this value. Of course, you can also bet on some very promising stocks in this stock index.

Is now the right time to invest in the DAX 40?

2021, like 2022, will be two very good years for making investments in the DAX 40 price. Indeed, given the current situation in the euro zone and the economic recovery in Germany after the Covid pandemic, this stock index should hold some good surprises for investors. We should also remember that 10 new stocks will soon be entering this index which will become the DAX 40 and that the opportunities will then be even more numerous.

 

Have you made or are currently making investments in the DAX 40 or its composition? Share your opinion and your experience by leaving us a comment.