The DAX 40 is Germany’s main stock index, tracking the 40 largest companies listed on the Frankfurt Stock Exchange. It expanded from 30 to 40 members in September 2021. Unlike most headline indices it is a performance index: dividends are assumed to be reinvested, so the index does not fall when its members pay them. Its members earn much of their revenue abroad, which makes the DAX sensitive to global trade, China and the euro.
Key takeaways
- The DAX was launched on 1 July 1988 with a base of 1,000 points and 30 members.
- It is weighted by free-float market value, with a single company capped at 10%.
- Because it is a performance index, its long-term chart includes reinvested dividends and is not directly comparable with price indices such as the S&P 500.
- Xetra trading runs from 09:00 to 17:30 Frankfurt time: 07:00–15:30 UTC in summer.
- Carmakers, chemicals, industrials and software firms make the DAX a gauge of global industrial demand.
| Tracks | DAX 40, Frankfurt Stock Exchange |
|---|---|
| Constituents | 40 since September 2021 (30 before) |
| Launched | 1 July 1988, base 1,000 |
| Index type | Performance (total return) |
| Weighting | Free-float market value, 10% cap per company |
| Xetra session | 09:00–17:30 Frankfurt · 07:00–15:30 UTC summer / 08:00–16:30 winter |
| Provider | Qontigo, part of Deutsche Börse |
| Symbol at Marketsall | DE40 |
What is the DAX 40?
The DAX (Deutscher Aktienindex) was designed in the 1980s as a real-time measure of the German market. Its membership is reviewed quarterly, mainly on size, and companies must meet profitability and reporting standards introduced when the index expanded in 2021. The 40 members account for most of the value of German listed shares.
Why is the DAX a performance index?
When a company pays a dividend, its share price normally falls by about the dividend amount on the ex-dividend date. A price index such as the S&P 500 or the FTSE 100 falls with it. The DAX instead assumes the dividend is reinvested in the index, so the index level is unaffected. Over decades this makes a large difference: the DAX has risen further on paper than a price index with the same underlying performance would.
| Feature | DAX 40 (performance) | Price indices (S&P 500, FTSE 100, Dow) |
|---|---|---|
| Dividends | Assumed reinvested | Not included |
| Effect of ex-dividend dates | None on the index level | Index falls by the dividend amount |
| Long-term chart | Includes dividend income | Excludes dividend income |
| Dividend adjustment on a cash CFD | Usually none needed | Credited to longs, debited to shorts |
For CFD traders this matters in two ways. First, comparing a DAX chart with a price index chart overstates the German market’s relative performance. Second, the dividend adjustments applied to most cash index CFDs may not apply to the DE40, or may be applied differently. Check the provider’s policy. See cash vs futures index CFDs.
What moves the DAX?
| Driver | How it tends to work | What to watch |
|---|---|---|
| Global industrial demand | Cars, machinery and chemicals sell worldwide, so global manufacturing matters more than German consumers. | PMI surveys |
| China | A major market for German cars and machinery. | Chinese economic data |
| ECB policy and the euro | Lower rates support valuations; a weaker euro helps exporters’ earnings. | ECB decisions, EUR/USD guide |
| Energy prices | German industry is energy intensive; gas price spikes hurt margins. | natural gas guide |
| Trade policy | Tariffs on cars or industrial goods hit the index directly. | Tariff announcements |
When does the DE40 trade?
| Moment | UTC | Why it matters |
|---|---|---|
| Xetra open | 07:00 | Overnight news from Asia and the US is priced in |
| German Ifo and ZEW surveys | 08:00–09:00 | Business sentiment surveys; monthly |
| US data | 12:30 | US CPI and Non-Farm Payrolls move European shares too |
| New York open | 13:30 | US flows join |
| Xetra closing auction | 15:30 | Liquidity drops sharply afterwards |
DAX futures trade for longer than Xetra, and DE40 CFDs generally follow them outside cash hours. See index CFD trading hours and global market trading hours.
What it costs to trade the DAX 40 (DE40) as a CFD
A DE40 CFD tracks the level of the DAX; no shares are owned. See what a CFD is and index trading.
| Cost | When it applies | Note for the DAX 40 (DE40) |
|---|---|---|
| Spread | Every trade, at entry | Tightest during Xetra hours; wider overnight |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Charged daily on positions held past the rollover. |
| Dividend adjustment | Cash-based index CFDs | Often not applied to the DAX because it is a performance index. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Most likely at the Xetra open and on US data |
Key risks
Global exposure. Trade disputes and Chinese slowdowns can hurt the DAX even when German news is calm.
Opening gaps. Asian and US overnight moves are priced at 07:00 UTC. See gap risk.
Energy shocks. Gas price spikes have hit German industry hard in the past.
Leverage. See how leverage increases trading risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
Why is the DAX a performance index?
The DAX assumes that dividends paid by its members are reinvested in the index. Its level therefore does not fall on ex-dividend dates and includes dividend income over time. Most other headline indices, such as the S&P 500 and FTSE 100, are price indices and exclude dividends.
What time does the DAX open?
Xetra cash trading in Frankfurt opens at 09:00 local time and closes at 17:30. That is 07:00 to 15:30 UTC in summer and 08:00 to 16:30 UTC in winter. DAX futures and CFDs usually trade for longer.
What moves the DAX?
Global industrial demand, Chinese growth, European Central Bank policy, the euro exchange rate, energy prices and trade policy. Because its members earn much of their revenue abroad, the DAX often reacts more to global news than to German domestic data.
What is DE40?
DE40 is a broker symbol for a CFD that tracks the DAX 40. It lets you take a position on the level of the German index without owning any shares.
Related reading
Track Ifo, ZEW and the ECB
The DAX's scheduled triggers, from the Ifo and ZEW surveys to ECB rate decisions, can be followed on the economic calendar. For a price index at work, a useful contrast with the DAX's reinvested dividends, read the FTSE 100 guide.
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