DAX 40 Explained: Germany's Index and Why Dividends Don't Pull It Down
The Orque Markets team · 3 November 2026 · 5 min read · How we write
In short
- The DAX holds 40 large German companies, weighted by free float with a 10% cap.
- It is a performance index: dividends are reinvested, so ex-dates cause no mechanical drop.
- Compare moves in percent, and size positions in points from the stop.
The DAX is Germany's benchmark and one of the most traded indices in Europe. It looks like a close cousin of the CAC 40, but one design choice makes its chart behave differently every spring. Here is what you need to know before you study it.
What the DAX contains
The DAX follows 40 of the largest German companies traded on the Frankfurt Stock Exchange. It had 30 members for more than three decades and was widened to 40 in September 2021. Like the CAC 40, it started from 1,000 points at the end of 1987 and is weighted by free-float market capitalisation, with a cap per company (10% at each review) so that no single group dominates.
Industrials, carmakers, chemicals, software, insurance and healthcare make up much of the weight. Exporters are heavily represented, which is one reason the DAX often reacts to news about global trade and demand from abroad.
The detail that changes everything: a performance index
The headline DAX is a performance (total return) index. When a member pays a dividend, the index assumes the cash is reinvested, so the payment does not pull the index down. The CAC 40 and the Euro Stoxx 50 headline indices are price indices: they drop by the dividend.
| Index | Type | What happens on a dividend date |
|---|---|---|
| DAX | Performance | No mechanical drop |
| CAC 40 | Price | Drops by the weighted dividend |
| Euro Stoxx 50 | Price | Drops by the weighted dividend |
This is why comparing a DAX chart with a CAC 40 chart over several years is misleading: part of the gap is simply reinvested dividends. Our article on ex-dividend dates and index prices shows the effect in numbers.
When the DAX trades
The reference prices come from the Xetra electronic market, which runs a continuous session from 09:00 to 17:30 Central European time, the same as Paris. Instruments that track the DAX may trade much longer hours, so you may see prices before 09:00 that are only an estimate of the Xetra open. Check European index hours in Paris time and the market sessions tool for the full day.
Why its point moves look big
The DAX sits at a much higher number of points than the CAC 40, so a 1% move covers many more points. That does not mean it is "more volatile" in percentage terms: always compare moves in percent, and size positions in points from your stop. A worked example:
| Item | Value |
|---|---|
| Account | €10,000 |
| Risk per trade (1%) | €100 |
| Stop distance | 80 points |
| Size | €100 ÷ 80 = €1.25 per point |
Illustrative calculation, not an expectation of results. The minimum size and the value of a point depend on your instrument: read its specification, then use the lot size calculator or the method in sizing a position in index points.
Checklist before studying the DAX
- Know it is a performance index and compare it only with like for like.
- Note the main sectors and the largest weights (published by STOXX, the index provider).
- Mark 09:00 and 17:30, plus the US open in the afternoon.
- Work out your size from the stop before anything else.
Index behaviour changes over time, and nothing here predicts where the DAX will go. Trading involves risk, and most retail traders lose money.
Questions people also ask
How many stocks are in the DAX?
Forty since September 2021; it had thirty before.
What is a performance index?
An index that assumes dividends are reinvested, so it does not fall when members pay them.
When does the DAX trade?
The Xetra cash session runs from 09:00 to 17:30 Central European time, the same as Paris.
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