SDAX: A Guide to Germany's Small-Cap Stock Index

Overview

The SDAX is a stock index that tracks the performance of the 70 largest German companies listed on the Prime Standard of the Frankfurt Stock Exchange. It is considered a benchmark for the small-cap segment of the German stock market and provides investors with exposure to a diversified portfolio of companies with high growth potential.

Components

The SDAX includes companies from various sectors, including technology, healthcare, industrials, and consumer goods. Some notable companies included in the index are Zalando, HelloFresh, and QIAGEN. The index is weighted by market capitalization, with the largest companies having a greater impact on its performance.

Performance

The SDAX has historically outperformed the broader DAX index, which tracks the performance of the 40 largest German companies. This is due to the growth potential of small-cap companies and the tendency for them to be more nimble and innovative than their larger counterparts. The SDAX has also shown resilience during market downturns, making it an attractive investment option for investors seeking diversification and growth.