Topic

"STOXX is committed to providing innovative solutions for global institutional investors, and we are pleased to announce these new versions of the DAX, tailored for those not bound by the EU UCITS Directive related to capping, seeking to track the largest German companies. The DAX product offering now provides investors with the optionality to observe specific weight caps or capture the largest stocks’ full influence."

February 13, 2025

STOXX Launches New DAX Versions to Provide Flexible Options for Global Institutional Investors

STOXX Ltd., part of the ISS STOXX group of companies and leading provider of benchmark and custom index solutions to global institutional investors, today announced the launch of a new DAX Uncapped version as well as a new DAX 20% version. The DAX 20% version is aimed in particular at investors who are seeking to align with the 20/35 rule as set out in the regulations for index-tracking UCITS.

The DAX blue-chip index, however, remains subject to the capping rules and will continue to be decisive for correspondingly aligned financial products. Please see here DAX: A trading impact analysis of the 15% stock cap for a detailed discussion of relevant market analysis. All of ISS STOXX’s index offerings are fully compliant with the European Benchmark Regulation (BMR) and these two new DAX versions are no exception.

Veronika Kylburg Head of Global Benchmarks, DAX, at STOXX said: “STOXX is committed to providing innovative solutions for global institutional investors, and we are pleased to announce these new versions of the DAX, tailored for those not bound by the EU UCITS Directive related to capping, seeking to track the largest German companies. The DAX product offering now provides investors with the optionality to observe specific weight caps or capture the largest stocks’ full influence.”

Kylburg added: “Our back-tested calculations show no significant differences in the risk and return characteristics between the new uncapped versions and the DAX blue-chip indices, including YTD return, volatility, and Sharpe ratio. However, it should be noted that the new versions may exhibit higher volatility due to their increased reliance on individual stocks.”

###

Share this
Get WEEKLY email ALERTS ON THE LATEST ISS INSIGHTS.