âOver the last 20 years, DAX has established itself as a global brand for the German economy and its best companies. An inclusion in the DAX-Index is a synonym for the most exclusive club for German enterprises. This draws international attention and also the focus of investors on those companies ,â said Deutsche BÃ¶rse AG Executive Board Chairman Reto Francioni.
As an index, the DAX was designed with the goal of serving as a basis for financial instruments. This index innovation has also positioned itself excellently in international terms. As an underlying for futures and options, the DAX ranks third worldwide behind the S&P 500 and Dow Jones EURO STOXX 50Â®, with a trading volume of EUR 12.8 billion in 2007. Overall, around 24,000 products, ranging from reverse convertibles to certificates and warrants, are traded on the DAX. The fiveExchange Traded Funds (ETFs) on the DAX have more than EUR 4.5 billion in assets under management.
The success of DAX is largely due to its transparency, its completely rule-based approach and its high tradability. As a performance index, the DAX is calculated and distributed every second by Deutsche BÃ¶rse. It takes dividend payments into account, thus fully reflecting the actual performance of an investment. Today, the 30 DAX stocks comprise just under 80 percent of the total market capitalization of all listed German companies. Deutsche BÃ¶rse has continuously maintained and developed the index since it was launched.
The DAX also mirrors the technological change in structure of the German equities market over the last 20 years. Companies in new sectors such as software and IT have also been promoted to the DAX index. Currently, companies from industry and the automotive sector are most strongly represented in the DAX with around 27 percent, followed by the financial sector comprising financial service providers, banks and insurance companies with around 23 percent, with companies from the pharmaceutical and chemical sectors constituting just under 17 percent.
Based on the DAX selection index, Deutsche BÃ¶rse has created a global indexuniverse that comprises new subjects and countries as well as strategies.
Deutsche BÃ¶rse indices are synonymous worldwide with top quality and innovation, under names such as DAXglobalÂ® or DAXplusÂ®. Market Data & Analytics calculates and publishes more than 2,600 indices in total. Deutsche BÃ¶rse thus ranks among the worldâs major index providers.