Deutsche Börse has launched a survey on the further development of the DAX. This is intended to eliminate various points of criticism, some of which have been around for a long time or were revealed in the course of the Wirecard insolvency.
The central issue is a possible expansion of the DAX from 30 to 40 index members. The DAX40 should thereby better reflect the corporate landscape in Germany. Nevertheless, although the number of companies in the DAX40 would increase by 33%, the share of new companies would only be 8%. The sector composition would also change only slightly. Industrial, automotive and chemical groups should continue to dominate the picture. Nevertheless, the share of dynamically growing companies in the further developed index would increase. The DAX would be larger, more modern and more diversified. In addition, the new rules and quality standards should create opportunities to react more quickly to possible abuses at companies so that dubious stocks can be removed from the index earlier. However, not all proposals meet with our full approval. In our opinion, ESG criteria can be implemented more specifically in special sustainability indices and our own investment guidelines than in the benchmark index. In addition, while the general aim is to harmonize the rules and regulations according to international standards, Deutsche Börse would follow its own path with this point in the benchmark index. On the whole, however, we would welcome the further development.