SDAX (Small Cap)
What is the SDAX (Small Cap)?
The SDAX is a stock market index that gives investors a benchmark for companies in Germany ranked between the 81st and 130th largest by market capitalisation. Together with the large-cap DAX and the MDAX (MidCap), the index constitutes the Prime All Share index of companies on the Frankfurt Stock Exchange.
Where have you heard about the SDAX (Small Cap)?
Your broker can give you information about the differing risk profiles of investing in small, medium and large-sized companies. The SDAX index offers investors exposure to the small-sized sector in Germany, one of Europe’s most stable economies. There are several easily tradeable Exchange Traded Funds (ETFs) which track the index.
What you need to know about the SDAX (Small Cap).
The SDAX index measures the performance of 50 small-sized companies in Germany. This sector offers a distinctive and relatively high risk and return profile to the bolder investor. Small-sized firms often have less financial stability than larger companies and this segment of the market can have less liquidity than the medium and large-sized sectors. As of August 2017, the three largest sectors represented in the index were Industrials, Financial Services and Media. It is calculated as a performance index, taking into account income from dividend payments. You can easily invest in the index through ETFs such as the ComStage SDAX UCITS.