DAX

DAX

The Deutscher Aktien Index (DAX) is a stock index composed of the 30 largest German blue chip companies listed on the Frankfurt Stock Exchange, also referred to on many brokerage platforms as Germany 30. With Germany having the largest footprint of economical influence in Europe and the DAX consisting of the largest powerhouses in manufacturing such as BMW, Siemens, Volkswagen and Thyssenkrupp – It’s no long shot to determine it an excellent way to gauge small insights into the health of the European economy.

Due to it’s small capacity of 30 stocks, the DAX is more focused on gauging the import and export sector of the economy due to its heavy manufacturing focus, putting it much closer in perspective of index’s such as the FT 30 and the Dow Jones Industrial Average.For those looking at diversifying their portfolio away from mainstream stocks based in the U.S and UK, it’s wise to consider the splitting a portion of your asset allocation towards the European sector.