Meaning of MDAX


The MDAX share index comprises 60 medium-sized stock corporations. In terms of market capitalization and order book turnover, these follow directly on the companies listed in the DAX 30. The abbreviation MDAX is derived from the English term “mid cap” (average company size). The MDAX represents the German economy better than the DAX, since around a third of the listed companies are medium-sized industrial companies that are considered a key industry in Germany.

  • The MDAX lists the 60 largest companies that follow the companies from the DAX.
  • The reference value for the size of the company is turnover and market capitalization.
  • The prices of the MDAX securities are determined in the context of XETRA trading.
  • The MDAX offers investors greater potential than the DAX.

The history of the MDAX

The start of the MDAX fell on January 19, 1996. He became a member of the DAX family, which made up

  • DAX 30
  • MDAX
  • SDAX
  • TecDax


However, the calculation basis for the index was December 30, 1987. For this day, the index level was set at 1,000, as was the case with the DAX and S-DAX. Initially, 70 stocks were included in the index. On March 24, 2003 the number was reduced to 50. In September 2018, Deutsche Börse AG increased the number of listed companies back to 60. The expansion took place in order to include some companies from the TecDax.

Form of listing of the MDAX

The MDAX is calculated both as a performance index and on the basis of a price index. The performance index receives more attention. The performance index is the more meaningful indicator. It simulates the price development of the shares under the assumption that all dividends would have been reinvested in the company. The price index only shows the price development of the share itself without taking the dividend into account . The index value is of course significantly lower.

The prices of the shares listed in the MDAX are determined using the XETRA electronic exchange system of Deutsche Börse. Trading begins every trading day at 9:00 a.m. The last course determination takes place at 5:30 p.m.

The late index, the L-MDAX, is determined from 5:45 p.m. to 8:00 p.m. This late index is an indicator of the post-trading price development. The basis is the floor trading data on the Frankfurt Stock Exchange. The determination is carried out by Deutsche Börse AG.

Composition of the MDAX

The MDAX focuses on medium-sized industrial companies, but includes virtually all sectors with the exception of car manufacturers. The financial sector is represented as well as retail chains, technology companies, construction, medicine, fashion, media and real estate.

The company Airbus has a special status, which one would actually have expected less in the MDAX. Airbus is known to be a Franco-German cooperation. There is a special clause for Airbus that prevents the aircraft manufacturer from being listed in the DAX. The head office is in Toulouse. The bulk of the share’s turnover is generated by EuroNext, a member of the French CAC 40 index. Airbus is by far the most heavily weighted share in the MDAX and therefore has the greatest influence on the index’s performance.

Regular review of the MDAX

The composition of the MDAX is reviewed four times a year: March, June, September and December. Further reviews will take place if there have been any mergers or new issues that would warrant a new composition of the index.

In addition to these four dates, however, the MDAX may also be restructured outside of the regular review. A company can fall out of the MDAX if it is no longer one of the 105 largest companies in Germany in terms of market capitalization and sales. Market capitalization is the arithmetical product of the market value of a single share multiplied by the number of shares in a company. If a company climbs into the group of the 85 largest companies, an unscheduled inclusion can take place.

It is important that the market capitalization only relates to the shares that are in free float. Company shares that are in firm hands are not taken into account. This means that the actual company value is not taken as a basis, but only the part that is freely tradable in circulation.

What makes the MDAX interesting for investors?

The MDAX includes both fairly large, established companies as well as rising stars from the SDAX who have not yet exhausted their entrepreneurial potential. This means that they offer attractive options both in terms of the share price development and possible dividend payments. In addition, the MDAX represents the German economy more precisely than its big brother DAX 30. The best possible investment to cover all segments of the MDAX is undoubtedly an ETF (index fund) on the MDAX.