Pulse Online: DAX Index Grows to 40 Constituents – Looking at Impact on Market Cap and Liquidity
06 Sep 2021
Pulse Online: DAX Index Grows to 40 Constituents – Looking at Impact on Market Cap and Liquidity
8th September 21 - On September 20, Germany’s flagship DAX® Index will expand from 30 to 40 constituents, concluding the biggest reform in the benchmark’s +30-year history.
The enlargement is the final step in a comprehensive overhaul of rules announced in November 2020 that took into account the responses of more than 600 participants in an extensive market consultation. Qontigo’s global index provider STOXX Ltd. announced last Friday the ten new constituents.
The ten new constituents will increase the DAX’s representativeness of the domestic economy and foster its diversification, but they also have significance in terms of market capitalization and share turnover. The impact of the expansion is described in the article.