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by Wolfgang Ehrensberger, uro am Sonntag
Because while As the DAX grows from 30 to 40 stocks from this autumn, the little brother MDAX is not only supposed to shrink from 60 to 50 members, but also lose a third of its market capitalization.
“Even after the reform, the MDAX will remain what it is: an excellent index,” says Munich asset manager Michael Reuss. “He represents the successful medium-sized companies in Germany, and when he gives up good companies, good ones move up from below.”
Since it was launched in January 1996, the small cap index has shown a significantly better performance than its bigger, much better known brother: While the DAX was able to gain around 500 percent during this time, the MDAX made it to over 1,100 percent. Or to put it another way: If you had invested in both indices in 1996, you would have achieved a 7.3 percent return per year with the DAX and 10.4 percent with the MDAX.
New price drivers 2021
“The MDAX will always have its raison d’être,” believes asset manager Reuss – and even sees additional momentum due to the index change in 2021: “Since the DAX changeover will not take place until September, the MDAX could even perform particularly well by then, as the Newcomers can also benefit from their fantasy of advancement. ” The DAX promotion candidates include the aircraft manufacturer Airbus, the Siemens spin-off Healthineers and Siemens Energy, the fragrance manufacturer Symrise, the online fashion retailer Zalando, the laboratory technology provider Sartorius, the biotechnology group Qiagen and the chemical retailer Brenntag.
Starting with its 70 founding members, the MDAX has undergone a profound structural change. Of the early participants, only Rheinmetall and Hochtief are left today. Prominent climbers in the DAX are Munich Re, Fresenius, Beiersdorf and HeidelbergCement. Companies like Asko, Barmag or Horten, on the other hand, are no longer known to anyone today. They left the index after a short time and disappeared forever. One of the biggest scandals in 1996 was the bankruptcy of Bremer Vulkan, and the bankruptcy of the construction company Philipp Holzmann in 1999 caused quite a stir. Even a state rescue package could only delay the demise of this construction company.
The MDAX too In the meantime had periods of weakness and at times also had trouble keeping up with the big brother. But the bottom line is that he has delivered an exemplary performance with his medium-sized world market leaders.
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