DAX30 Becomes DAX40

Starting September 20, 2021, the renowned German stock index DAX30 includes not 30, but now 40 companies, thus becoming DAX40. Here are the 10 new companies that joined:

Airbus SE
Zalando SE
Siemens Healthineers AG
Symrise AG
HelloFresh SE
Sartorius AG Vz
Porsche Automobil Holding
Brenntag SE
Puma SE
Qiagen N.V.

Their inclusion in the index is a historic event. In the coming period, these companies could record significant fluctuations because the funds and ETFs that track this index will need to purchase shares of these companies and adjust their holdings to match the composition of the new index. Therefore, it will be interesting to follow these companies in the coming days.

About the former DAX30

What Is the DAX30 Index?

DAX30 is the Frankfurt stock index that records the performance of the 30 largest German companies by trading volume and market capitalization on the Frankfurt Stock Exchange. It is the equivalent of the Dow Jones Industrial Average index linked to the New York Stock Exchange. These indices represent a strict selection of nationally listed companies. The companies included in the DAX30 index are considered "Blue Chip" ( A blue chip corporation enjoys a strong national reputation for superior quality, reliability, and the ability to remain profitable both in good economic conditions and in more unfavorable conditions). The DAX30 index includes a diversified group of companies covering economic sectors such as manufacturing, banking services, insurance, apparel, medical services, pharmaceuticals, logistics, chemicals, and consumer goods.

Historical Quotes of DAX 30

Below are the historical quotes of the DAX 30 index starting with 1987, the year it was launched, up to the present:

The DAX 30 stock index was launched on December 30, 1987, with a value of 1.000 points. Since then, its value has increased more than 13 times;
The highest level of the German DAX exchange was 13 600 points, reached on January 23, 2018;
The largest decline in a single year was recorded in 2002, with a 44% drop;
On October 13, 2008, DAX 30 stocks recorded the largest one-day gain ever registered, 11,40%.

DAX 30 - Economic Milestones

With the establishment of the European Monetary Institute in 1994, the DAX100 index was also launched. The purpose of this index was to represent the performance of the 100 most liquid companies;
One year later, in 1995, the German state's holding in Deutsche Bundespost was privatized, which led to the institution being split into three independent companies: Deutsche Post AG, Deutsche Telekom AG, and Postbank AG. Two of these entities are still part of the conglomerate of companies that currently make up the German DAX 30 index;
In November 1996, Deutsche Telekom AG initiated the largest IPO in the history of the German index. 713 million shares were issued and 13 billion euros were raised. As a result, demand exceeded supply five times;
As you know, in 1999 the single currency, the euro, was introduced, and the German mark ceased to be the national currency;
2003 was a negative year for the stock market and especially for the DAX 30 index. The reason was the so-called "new market". After the dotcom bubble burst, DAX30 index quotes fell;
On May 7, 1998, the largest corporate merger in the history of the DAX 30 index was completed, the merger between Daimler-Benz and Chrysler. At that time, it was the largest merger in the automotive industry. Daimler shareholders owned approximately 57% of the new company, while Chrysler shareholders owned the remaining 43%;
In October 2008, Volkswagen was the most valuable company in the world, at least for a few hours, when its share price exceeded 1.000 euros. The reason for Volkswagen shares appreciating was Porsche's announcement that it intended to increase its stake in the company to 75%.

DAX30 Today

Since its launch 30 years ago, the value of the DAX 30 index has multiplied more than tenfold. If an investor had bought the index at the highest level of 1988, they would have had an average annual return of 7,5%. On the other hand, the German index is still one of the most important stock indices worldwide. It is the underlying asset for many financial products.

Composition of the DAX 30 Index

As the name suggests, the DAX 30 index consists of 30 companies. The following table shows the constituent companies for December 2019.

DAX30 Performance in the Last 5 Years

2020: +3,6%
2019: +25.48%
2018: -18.26%
2017: +12,51%
2016: +6.87%

source: admiralmarkets.com

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DAX30 Becomes DAX40