Founded in 1988, the DAX® or GER40 Index is an index of the 40 largest companies on the Frankfurt Stock Exchange, and represents about 80 percent of the market capitalisation of corporations in Germany. DAX40 is available internationally for those interested in the German stock market. The index previousiy listed only the top 30 companies, but as of September 2021, they have increased this number, as well as introducing a number of reforms.
The DAX® Index is the benchmark index for Germany and is often considered a proxy for the European economy. The introduction of more companies to this index also coincides with some stricter rules to warrant eligibility for indusion on the index. Companies will have to post positive earnings for at least 2 years, as well as providing quarterly results along with the annual report, and the index will be reviewed twice a year, when previousiy it was only checked annually.
The inclusion of 10 more companies provides a better overview of the wider German market, and gives potential investors a more diverse picture of the economy. Previousiy traded as DAX30 or GER30.