What is the TecDAX?

An overview of Germany's technology index

The TecDAX is a stock market index that tracks the performance of the 30 largest technology companies in Germany. It was launched in 2003 and is calculated by Deutsche Börse, the operator of the Frankfurt Stock Exchange.

Key features of the TecDAX

The TecDAX is a capitalization-weighted index, which means that the companies with the largest market capitalizations have a greater impact on the index's value. The index is calculated in real time and published every 15 seconds.

The TecDAX is a popular benchmark for investors who want to track the performance of the German technology sector. It is also used by fund managers to create investment products that track the index.

Components of the TecDAX

The TecDAX is composed of 30 companies that are listed on the Frankfurt Stock Exchange. The companies in the index are selected based on their market capitalization, liquidity, and financial performance.

The following are some of the largest companies in the TecDAX:

Performance of the TecDAX

The TecDAX has performed well over the long term. Since its launch in 2003, the index has gained over 200%. The index has outperformed the DAX, which is the broader German stock market index, over the same period.

The TecDAX has benefited from the strong performance of the German technology sector. German companies are leaders in the fields of software, engineering, and manufacturing.

Investing in the TecDAX

There are a number of ways to invest in the TecDAX. Investors can buy shares of the individual companies in the index, or they can buy an exchange-traded fund (ETF) that tracks the index.

ETFs are a popular way to invest in the TecDAX because they offer diversification and low costs. There are a number of ETFs that track the TecDAX, including the iShares MSCI Germany Technology ETF (EWG) and the Xtrackers FTSE Germany Technology ETF (DBTG).