DAX turns 30 as ETF-linked assets top €17bn

Jul 3rd, 2018 | By | Category: ETF and Index News

Frankfurt-headquartered exchange operator Deutsche Börse has celebrated the thirtieth anniversary of the launch of its bellwether index – the DAX.

DAX 30 ETFs Deutsche Borse

Deutsche Börse has celebrated the thirtieth anniversary of the launch of the DAX index.

The DAX index is the most widely followed reference for the performance of the German blue-chip equity market.

It has proven to be a popular choice for ETF investors as there are currently 17 DAX-linked ETFs with more than €17 billion in assets under management.

Unveiled on 1 July 1988, the index measures the share performance of 30 of the largest and most important companies listed on the Frankfurt Stock Exchange, in terms of exchange turnover and market cap.

The index is weighted by market capitalisation subject to an individual constituent cap of 10%. The 30 stocks in the index represent around 80% of the market capitalisation of listed German equities. They include well-known names such as SAP, Siemens, Bayer, Allianz, Daimler, Adidas, Volkswagen and BMW.

The index takes into account dividend payments and thus reflects the real performance of an investment in the companies (excluding trading costs).

“The DAX is an institution – investors trust it, the media watch it,” said Theodor Weimer, CEO of Deutsche Börse. “Anyone who believes in German companies invests in it. It is a kind of temperature chart for the German economy.”

He added: “The DAX is also a success story – it is transparent, rules-based and liquid. Furthermore, it’s a brand for ‘listed in Frankfurt’.”

The largest ETF to track the index is the €7bn iShares Core DAX UCITS ETF (DAXEX GY). The fund is relatively cheap with a total expense ratio (TER) of 0.16%.

The cheapest ETF to track the DAX, however, is the €780 million ComStage DAX UCITS ETF (CBDAX GY) which charges a TER of 0.08%. Just one basis point higher, charging 0.09%, is the €3.5bn Xtrackers DAX UCITS ETF (XDAX GY).

Looking back over the history of the index, the index has experienced some notable market moments, marked by critical highs and lows. Despite temporary setbacks caused by the bursting of the dot-com bubble, market disruptions after 9/11, and the 2008 financial crisis, the index level has increased more than tenfold since its inception, moving from a starting point of 1,163 to its all-time high of 13,596 points on 23 January 2018.

According to Deutsche Börse, “During all these years, DAX has tracked events and developments in Germany and around the world, with booms and busts, trends, crises and periods of calm all captured by the index’s performance.”

The exchange operator marked the anniversary with an market-opening bell ceremony on the floor of the Frankfurt Stock Exchange.

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