German indices are on a roll this year, despite economic fears and political instability. Investors believe that Europe has a card to play in the face of the short-term uncertainties generated in the US economy by Donald Trump's policies. The strong performance of technology stocks can be seen on the TecDAX, which has just outperformed the DAX.
Here's a brief reminder of the main characteristics of the four main Deutsche Börse indices in Frankfurt:
The DAX (Deutscher Aktienindex) comprises 40 stocks (compared with 30 until 2021). It's based on free-float market capitalization, and dividends are integrated into the index's performance.
Largest weightings: SAP SE, Siemens AG, Allianz, Deutsche Telekom, Airbus. Compared with the European average represented by the STOXX Europe 600, the DAX is underweight in healthcare and energy and overweight in industry.
The MDAX (Mid-Cap-DAX) tracks the 50 largest mid-cap companies, second only to the DAX in terms of capitalization and liquidity. Largest weightings: GEA Group, Scout24, Nemetschek Lufthansa, CTS Eventim.
Compared to the European average, the MDAX is heavily weighted towards industry and materials, which account for 43% of the index. The SDAX (Small-Cap-DAX) comprises the 70 companies that follow the 90 of the DAX and MDAX.
Largest weightings: Renk group, Flatexdegiro, DWS, Dürr, ATOSS Software. Here again, industry weighs heavily (30%), ahead of IT (19%) and finance (14%).
The TecDAX is dedicated to the largest technology companies listed on the Frankfurt Stock Exchange. It's a German-style mini-Nasdaq. Largest weightings: Infineon, Deutsche Telekom, SAP SE, Siemens Healthineers, Qiagen.
