DAX 40 – why were index rules changed?
The leading German index DAX was increased from 30 to 40 companies in September 2021, while the MDAX shrank from 60 to 50 members. The index operator Deutsche Börse AG is thus drawing consequences from the Wirecard scandal.
As a DAX member, the payment service provider caused a disaster on the German stock exchange with a historic fraud scandal. In mid-2020, Wirecard shares crashed and many investors lost their capital. Although Wirecard filed for bankruptcy at the end of June 2020 and was obviously broke, the company from Aschheim near Munich had to remain in the DAX until the end of August. The reason: gaps in the rules and regulations of Deutsche Börse.
When Wirecard Delivery Hero was promoted to the DAX, it was met with heavy criticism. Because the food supplier benefited greatly from the Corona crisis, but was unable to record any operational profit. In addition, Delivery Hero is no longer active in Germany, despite the Berlin headquarters. Delivery Hero had already sold its German business to its competitor Lieferando in 2019. With the revision of the index rules, cases like these should be avoided in the future, the inclusion in the most important German stock index is now under stricter control.
So the DAX30 is a thing of the past; the DAX 40 has existed since September 2021. Read below what this means for investors and how you can invest in the DAX40. We also clarify the most important questions about the DAX XXL.