Little change for IG clients as DAX gets reformed

As the DAX index is set for some reforms later this month, clients of online trading major IG are poised to see only a marginal change.

According to a post by the IG Community team, in line with the pending changes to the index, on the IG platform, the Germany 30 will be renamed the Germany 40. Traders of the index will be able to trade it the same way as they did before, and the initial change to cash and futures prices should be marginal.

Let’s recall that Qontigo’s global index provider STOXX Ltd announced on September 3, 2021, the new composition of the DAX index family.

The German flagship index DAX is being increased to 40 constituents, marking a significant evolution of the index and of the German capital market. Simultaneously, the MDAX will be reduced from 60 to 50 members.

The additions include:

  • Airbus SE
  • Zalando SE
  • Siemens Healthineers AG
  • Symrise AG
  • HelloFresh SE
  • Sartorius AG Vz
  • Porsche Automobil Holding
  • Brenntag SE
  • Puma SE
  • Qiagen N.V.

IG explains that the new diversity created by having more securities in the index should dilute the impact of sudden large moves by individual securities on the index price. Traders looking to use the DAX to hedge underlying portfolio’s might see a larger correlation to more securities than before.

The rebalancing of the index is scheduled to take place by 20 September 2021.

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