Stock Index: SDAX Shares
Eulerpool has compiled a list of stocks in the SDAX index for you. The special features and structure of this index are explained below.
SDAX: General information
The SDAX is the successor index to the MDAX, which includes the 50 largest companies after the DAX. The SDAX comprises the 70 largest companies after the 50th MDAX company. These are mainly small-cap companies. The index was introduced in 1996, but then back-calculated to have a good comparison with the DAX.
The index is based on daily data from the Xetra electronic stock exchange, which is open from 9:00 to 17:30. The Dax family covers the DAX, MDAX and SDAX. Companies can therefore move up and down the SDAX, depending on their performance. Which companies then get in is decided by Deutsche Börse, which manages the index.
|Stock Exchange||Deutsche Börse|
SDAX: Calculation of the index
The index is updated twice a year, in March and September. That's when it's checked whether or not companies are still among the 70 largest according to the MDAX. So if a company moves up or down based on market capitalization, this process is carried out in one of these months.
The SDAX is calculated as both a price index and a performance index. The performance index is usually used because dividend payments are reinvested here. This is not taken into account for the price index.
Overview of SDAX Index History
As mentioned in the introduction, the SDAX was introduced in 1996, but was calculated back to December 30, 1987, to start one there at 1,000 points.
Significance for private investors
Compared with European indices, the SDAX is doing quite well. Over the last 5 years, the index has returned 49%, whereas the Euro Stoxx has only returned 25% and the FTSE 100 5%. From a historical perspective, the SDAX is not a bad investment if you want to be invested in Europe or Germany.
On an international level, however, the German share index for small cap companies can already keep up significantly better than the DAX or the MDAX. The very broadly diversified MSCI World has returned 66% over the last five years, which is slightly more, but not excessively so. However, an investment in this index should be carefully considered.