What companies are included in the DAX index?

A few of the globally recognized companies on the DAX include Volkswagen, Bayer, BMW, and Adidas. The DAX index, which tracks 40 large and actively traded German companies, is considered by many analysts to be a gauge for Germany's economic health.

How is the DAX index calculated?

The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume. The DAX was created in 1988 with a starting index level of 1,163 points.

What is the difference between the DAX and the Dow Jones?

DAX is the equivalent of the UK FTSE 100 and the US Dow Jones Industrial Average, and because of its small company selection it does not necessarily represent the vitality of the German economy as a whole.