🇩🇪 GER40 (DAX 40): Germany’s powerhouse index
- NexxtGen Markets
- May 20
- 4 min read
The GER40, commonly referred to as the DAX 40, is the flagship stockmarket index of Germany and one of the most important assets in the European financial landscape.
Tracking the performance of 40 of Germany’s largest and most liquid blue-chip companies, it’s widely viewed as a benchmark for both the German economy and European industrial strength.
In this deep dive, we explore the origins of the index, the companies it includes, its historical performance, and its growing influence in the global investing landscape.
🏛️ A brief history of the DAX
The DAX (Deutscher Aktienindex) was first introduced on 1 July 1988 by the Frankfurt Stock Exchange (operated by Deutsche Börse). It began with just 30 companies, designed to represent the performance of major German corporations listed on the Frankfurter Wertpapierbörse (FWB).
In September 2021, following the Wirecard scandal, the index was expanded from 30 to 40 constituents, rebranded as the DAX 40 (or GER40 on many global trading platforms), to enhance diversification and improve corporate governance standards.
It is a market-capitalisation-weighted index, adjusted for free float — meaning only the shares actually available for trading are counted in weighting calculations.
🏢 What companies are in the GER40?
The DAX 40 includes some of the most influential and globally recognised German companies across sectors such as automotive, chemicals, industrials, healthcare, and tech.
Here are a few of the major players:
Volkswagen AG
Siemens AG
BASF SE
SAP SE
Allianz SE
Bayer AG
Adidas AG
Deutsche Telekom AG
Infineon Technologies
Deutsche Post (DHL)
These companies are not only titans in Germany — many are global leaders, with significant revenue streams across Europe, Asia, and the Americas.
📈 DAX 40 performance and returns
Historically, the DAX has delivered solid long-term returns, with a strong performance record despite volatility from the Eurozone crisis, Brexit, and the COVID-19 pandemic.
Key stats:
Since inception (1988): +1,700% (price return), over +7,000% (total return incl. dividends)
Annualised return (1988–2023): ~8.5% (total return)
2024 return: +18.8%
5-year annualised return: ~7.4%
10-year annualised return: ~7.9%
Best year: 1997 (+47%)
Worst year: 2002 (−43%)
💡Note: The DAX is traditionally quoted with dividends reinvested, unlike most other indices like the S&P 500 or Dow Jones, giving it a performance advantage when comparing like-for-like.
🗺️ DAX vs other major indices
Let’s see how the DAX compares with its international peers:
Feature | GER40 (DAX 40) | S&P 500 | Nasdaq 100 | FTSE 100 |
Region | Germany (Eurozone) | USA | USA | UK |
Number of companies | 40 | 500 | 100 | 100 |
Dividend reinvestment? | Yes (standard quote) | No (price index is standard) | No | No |
Dominant sectors | Industrials, Automotives | Tech, Financials | Tech-heavy | Financials, Energy |
Currency exposure | Euro | USD | USD | GBP |
The GER40 offers unique exposure to European industrial strength and manufacturing dominance — very different from the growth and tech-heavy bias of U.S. indices.
🧠 Who manages the DAX?
The DAX is operated by Deutsche Börse Group, one of the largest financial services providers in Europe. It runs the Frankfurt Stock Exchange and Eurex (Europe’s leading derivatives exchange), and it plays a central role in maintaining Germany’s financial infrastructure.
Deutsche Börse is also behind other indices like the MDAX (mid-cap stocks), SDAX (small-caps), and TecDAX (tech stocks), which complement the DAX 40 within Germany’s wider equity landscape.
⚖️ Benefits and risks of DAX exposure
As with all investment vehicles, the GER40 comes with both opportunities and risks.
✅ Pros:
Strong long-term performance (especially with dividends reinvested)
Exposure to global industrial and manufacturing giants
Blue-chip stability from household names
Ideal for diversified portfolio construction within Europe
⚠️ Cons:
Highly exposed to cyclical sectors (automotive, industrials)
Sensitive to Eurozone political and economic shocks
Currency risk for non-Euro investors
Less tech-driven growth than U.S. indices
💼 How to invest in the GER40
There are several ways to gain access to the DAX 40:
ETFs like the iShares Core DAX UCITS ETF
Index funds offered by European asset managers
Multi-asset copy portfolios including GER40 exposure on eToro
DAX options and derivatives on Eurex
Whether you're investing for growth or income, GER40 ETFs offer a strong and cost-efficient method for European equity exposure.
🧭 Why the GER40 matters globally
The DAX 40 serves as a barometer for Europe’s largest economy and its corporate elite. It influences European fund flows, reflects macroeconomic health, and offers a real-time pulse on industrial and export-led performance.
Its global relevance continues to grow — particularly as institutional investors seek diversification beyond U.S. and Asian markets.
🏁 Final thoughts
The GER40 is more than just a stock index — it’s the beating heart of German business. Its evolution from a 30-member index to today’s diversified DAX 40 reflects both market growth and lessons learned.
For those seeking long-term investing opportunities in stable, dividend-paying European blue chips, the DAX deserves serious consideration.
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