Looking to invest in Germany’s stock market for 2025? Picking the right Exchange Traded Fund (ETF) can make a big difference. We’ve looked at some of the main German indices that ETFs track, giving you a starting point to find the best ETF in Germany for your investment goals.
Whether you’re interested in the biggest companies, specific sectors, or dividends, there’s likely an ETF out there for you.
Key Takeaways
- The DAX® index, tracking the 40 largest German stocks, is a popular choice for many investors.
- For exposure to mid-cap companies, the MDAX® index is worth considering.
- If small-cap German companies are of interest, the SDAX® index offers that exposure.
- Specialised indices like DAX® plus Maximum Dividend or DAX® 50 ESG+ cater to specific investment preferences such as dividend focus or sustainability.
- ETFs tracking broad German indices generally have competitive expense ratios, often between 0.08% and 0.16%.
1. DAX®
The DAX® index is probably the most well-known benchmark for German equities. It represents the 40 largest and most liquid companies traded on the Frankfurt Stock Exchange’s Prime Standard segment. Think of it as the blue-chip index for Germany, showcasing the country’s biggest players across various sectors. Investing in a DAX® ETF can give you broad exposure to the German economy.
What to Consider
When looking at DAX® ETFs, it’s worth checking a few things. The total expense ratio (TER) is a big one; you’ll find some of the cheapest Germany ETFs tracking the DAX® have fees as low as 0.08% per year. Performance is another key factor, and it’s always a good idea to compare how different ETFs have tracked the index over time. You can find ETFs that either distribute dividends or reinvest them (accumulating). The choice often comes down to your personal investment goals.
Key DAX® ETFs
There are quite a few ETFs that track the DAX®. Some of the most popular include:
- iShares Core DAX® UCITS ETF (DE) EUR (Acc): Often cited for its low TER and accumulating structure.
- Xtrackers DAX UCITS ETF 1C: Another low-cost option, known for its tracking efficiency.
- Amundi DAX UCITS ETF Dist: A distributing option if you prefer receiving dividends.
It’s interesting to note that STOXX has introduced new composite benchmarks for the DAX®, which could offer new ways to invest in different segments of the German market. For a deeper dive into specific fund performance and details, resources like Global X DAX Germany ETF can be very helpful.
Performance Snapshot
Looking at recent performance, the DAX® index itself saw a decent gain, with German stocks closing higher. For instance, one day saw the DAX index gaining 1.41%, with companies like Commerzbank AG O.N. performing particularly well. While past performance isn’t a guarantee of future results, understanding historical trends can inform your investment decisions. You can check real-time price updates and analysis for ETFs like the GX DAX Germany ETF (DAX-Q) to stay informed.
Investing in the DAX® provides a straightforward way to gain exposure to Germany’s leading companies. It’s a solid foundation for many portfolios, offering a blend of stability and growth potential from Europe’s largest economy.
2. MDAX®
The MDAX® index represents the next 50 largest German companies after the DAX®. These are typically mid-cap stocks, offering a different flavour of German equity exposure compared to the blue-chip DAX®. It’s a good place to look if you’re interested in companies that are perhaps a bit more established than small caps but haven’t quite reached the giant status of the DAX® constituents.
What is the MDAX®?
The MDAX® tracks 50 German mid-cap companies. These firms are listed on the Prime Standard segment of the Frankfurt Stock Exchange. Think of it as the second tier of German corporate giants, providing a broader look at the German economy beyond just the very largest players. It’s a solid benchmark for understanding the performance of the German mid-market.
Performance Snapshot
Looking at recent performance can give you a sense of how the MDAX® has been doing. For instance, in the year up to July 2025, the MDAX® index saw a return of 20.80%. This shows it can be quite a dynamic index, sometimes outperforming the broader DAX®.
| Index | 1 Year Return (as of 31.07.25) |
|---|---|
| MDAX® | 20.80% |
Investing in MDAX® ETFs
If you’re looking to get exposure to the MDAX®, ETFs are a straightforward way to do it. There are several ETFs that track this index, each with its own expense ratio and replication method. For example, the iShares MDAX® ETF (DE) is one option that aims to replicate the index’s performance. When choosing an ETF, it’s worth comparing things like the total expense ratio (TER) and whether it accumulates or distributes dividends. The Invesco MDAX UCITS ETF is another popular choice, designed to mirror the net total return of the MDAX® Index.
Investing in mid-cap indices like the MDAX® can offer a balance between the stability of large caps and the growth potential of smaller companies. It’s about capturing a significant segment of the German market that might otherwise be overlooked.
Key Considerations
When considering an MDAX® ETF for your portfolio, remember to look at:
- Expense Ratios: Lower is generally better, as it means more of your investment return stays with you.
- Replication Method: Full replication means the ETF holds all the index constituents, while sampling methods use a representative selection.
- Fund Size: Larger ETFs often have better liquidity and may be more stable.
It’s always a good idea to do your homework. For a detailed look at specific MDAX® ETFs, resources like the Amundi German Mid-Cap MDAX ETF Dist summary page can be very helpful.
3. SDAX®
The SDAX® index represents the smaller companies within the German stock market, following the DAX® and MDAX®. It tracks 70 German small-cap stocks, offering a look into a different segment of the economy compared to its larger counterparts. While the DAX® focuses on the top 40 German companies and the MDAX® on the next 50, the SDAX® casts a wider net, capturing businesses that are still significant but operate on a smaller scale. This can mean higher growth potential, but also, as is often the case with smaller companies, a bit more volatility.
It’s important to understand that inclusion in the SDAX® is a mark of a company’s growing significance in the German market. For instance, Verve Group’s recent promotion to the SDAX® index, effective July 11, 2025, highlights its recognised position among the 160 most significant German stocks. This kind of movement can be a good indicator for investors looking at the broader German market landscape.
When considering an ETF that tracks the SDAX®, it’s worth noting the performance trends. For example, in the year to date, the SDAX® has shown a performance of 27.23%, with a three-year return of 14.41%. This suggests a period of solid growth for these smaller German firms.
Here’s a quick look at how the SDAX® has performed against other German indices:
| Index | Year-to-Date Performance | 3-Year Performance |
|---|---|---|
| SDAX® | 27.23% | 14.41% |
| MDAX® | 20.80% | 11.49% |
| DAX® | 20.16% | 13.59% |
When looking for an ETF, you might find options like the Amundi SDAX UCITS ETF Dist, which has a fund size of 160 million EUR and a Total Expense Ratio (TER) of 0.70% p.a. It’s always a good idea to compare these details when selecting an ETF to track this index, perhaps by looking at the Amundi SDAX ETF for more information.
Remember that index composition can change. For example, unscheduled component changes for indices like the SDAX® are announced by ISS STOXX Index GmbH, with recent changes taking effect on July 11, 2025. Staying informed about these adjustments is key for any investor.
4. TecDAX®
The TecDAX® index is your go-to for tracking the performance of Germany’s leading technology companies. It specifically focuses on the 30 largest and most actively traded tech firms listed on the Frankfurt Stock Exchange’s Prime Standard segment. These are companies that, in terms of size and trading volume, sit just below the main DAX® index. It’s a good way to get exposure to the tech sector within the German market.
Key Characteristics of TecDAX® ETFs
When looking at ETFs that track the TecDAX®, you’ll find they generally use a full replication method, meaning they hold the actual stocks in the index. The domicile is typically Germany, which can be a factor for some investors. The expense ratios can vary, but some options are quite competitive, making it an accessible way to invest in German tech.
Performance Snapshot
Looking at recent performance figures, the TecDAX® has shown some interesting movements. For instance, in 2025, it posted a return of 12.21%, following a more modest 1.72% in 2024. The previous year, 2023, saw a stronger performance of 13.52%. However, it’s worth noting the dip in 2022 with a -25.98% return, which is typical for technology-heavy indices that can be more volatile.
| Index Year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| TecDAX® (%) | 20.72 | -25.98 | 13.52 | 1.72 | 12.21 |
Investment Considerations
Investing in a TecDAX® ETF means you’re putting your money into companies at the forefront of technological innovation in Germany. This could include areas like software, hardware, telecommunications, and semiconductors. It’s a sector that can offer significant growth potential, but also comes with its own set of risks, as seen in the 2022 downturn. For those interested in the broader German market, comparing this with indices like the STOXX Germany Large Cap Index can provide useful context.
It’s important to remember that past performance is not a reliable indicator of future results. Always do your own research and consider your personal financial goals before investing.
Available ETFs
There are a few ETFs that track the TecDAX®. For example, the iShares TecDAX UCITS ETF (DE) is one such option, employing full replication and domiciled in Germany. Another is the Amundi TecDAX UCITS ETF, also typically using full replication. When choosing, consider factors like the ETF’s total expense ratio (TER), fund size, and whether it distributes dividends or accumulates them. Staying informed about the ETF market is always a good idea, and you can subscribe to an ETF newsletter for updates.
5. DivDAX®
Understanding the DivDAX®
The DivDAX® index is designed for investors looking to tap into the income potential of the German stock market. It specifically focuses on the 15 companies within the broader DAX® index that have historically offered the highest dividend yields. This means the index is weighted towards firms that regularly distribute a portion of their profits back to shareholders.
This focus on dividends makes it an attractive option for those seeking regular income from their investments. When considering ETFs that track this index, it’s worth noting that the selection is based on the dividend yield paid out by the companies. This approach provides a clear strategy for dividend-focused investing within Germany.
Key Characteristics and Performance
When we look at the performance data, the DivDAX® has shown some interesting trends. For instance, in 2025, it posted a return of 14.35%, following a 4.25% return in 2024 and 17.08% in 2023. While past performance is never a guarantee of future results, this historical data can give you a sense of its behaviour.
| Index | 2025 (YTD) | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| DivDAX® | 14.35% | 4.25% | 17.08% | -11.17% | 13.68% |
Investing in DivDAX® ETFs
For those interested in gaining exposure to the DivDAX® index, several ETFs are available. For example, the iShares DivDAX® ETF (DE) is a popular choice, known for its full replication method and a total expense ratio (TER) of 0.31% p.a. This ETF distributes profits, which might appeal to income-seeking investors. It’s important to research the specific characteristics of any ETF, such as its domicile and replication method, to ensure it aligns with your investment goals. You can find more details on specific ETFs like the iShares DivDAX® ETF.
When selecting an ETF, consider not just the index it tracks but also its expense ratio, distribution policy (accumulating or distributing), and the fund’s domicile. These factors can significantly impact your overall investment return.
6. DAXplus® Maximum Dividend
For investors looking to generate income from their German equity holdings, the DAXplus® Maximum Dividend index presents an interesting proposition. This index focuses on German companies that offer the highest dividend yields, aiming to provide a steady stream of income. It’s designed to capture stocks that are not only financially sound but also generous with their payouts to shareholders.
Key Characteristics:
- Focus on Yield: The primary objective is to identify and track companies with the highest dividend yields within the German market.
- Constituent Selection: It typically includes 25 German equities selected based on their dividend payout.
- Income Generation: This index is particularly suited for those who prioritise regular income from their investments.
Performance Snapshot:
While past performance is no guarantee of future results, looking at historical data can offer some insight. For instance, the index showed a 14.39% return in 2025 and a 9.01% return in 2021. However, it also experienced a -1.59% return in 2024 and -20.03% in 2022, highlighting the inherent volatility associated with dividend-focused strategies. It’s worth noting that the Deka DAXplus Maximum Dividend UCITS ETF is one way to gain exposure to this index, with a TER of 0.30% p.a. You can find more details about this specific ETF.
Considerations for Investors:
When considering the DAXplus® Maximum Dividend for your portfolio, it’s important to understand its nuances. Dividend yields can fluctuate, and companies that pay high dividends aren’t always the most stable or fastest-growing. It’s a good idea to compare its performance against other dividend-focused indices, like the DivDAX®, to make an informed decision. Remember that investing in ETFs involves costs, and understanding the total expense ratio (TER) is key; for example, some ETFs tracking similar strategies might have fees around 0.15% p.a. ADSS offers competitive fees for ETF CFD trades, which could be relevant if you’re trading these instruments.
Investing in dividend-focused indices can be a double-edged sword. While the income potential is attractive, it’s vital to balance this with the overall financial health and growth prospects of the underlying companies. A high yield today doesn’t automatically mean a high yield tomorrow, especially if a company’s earnings falter.
7. DAX® ex Financials 30
Understanding the DAX® ex Financials 30
The DAX® ex Financials 30 index is a bit of a niche player, but it could be just the ticket for certain investors. It’s essentially the main DAX® index, but with a significant chunk removed – specifically, all the banks, financial services firms, and insurance companies. This leaves you with the 30 largest and most actively traded German companies, but with a focus on the industrial and consumer sectors, for example. It’s a way to get exposure to the German market without the heavy weighting towards the financial sector that you’d find in the standard DAX®.
This index tracks 30 German stocks, excluding those in the financial industry. It’s a good option if you’re looking to avoid financial sector volatility or want to overweight other parts of the German economy.
Here’s a quick look at how it performed over different periods:
| Period | Performance |
|---|---|
| 1 Year | 24.36% |
| 3 Years | 55.98% |
| 2024 | 11.25% |
| 2023 | 16.32% |
| 2022 | -18.07% |
| 2021 | 13.59% |
When considering an ETF that tracks this index, it’s worth looking at the fund’s expense ratio and how it replicates the index. For instance, the Deka DAX ex Financials 30 UCITS ETF is one option available, with a TER of 0.30% p.a. and it uses full replication.
Investing in sector-specific or modified indices like the DAX® ex Financials 30 can offer a different risk-return profile compared to broader market indices. It’s important to understand what you’re investing in and how it aligns with your overall investment strategy.
If you’re interested in the broader German market, you might also want to check out the Global X DAX Germany ETF.
8. DAX® 50 ESG+
DAX® 50 ESG+
When looking at sustainable investing options within the German market, the DAX® 50 ESG+ index is certainly one to consider. It focuses on the 50 largest and most liquid German stocks that meet specific environmental, social, and governance (ESG) criteria. This means companies involved with controversial weapons, tobacco, thermal coal, and nuclear energy are generally excluded from the index. It’s a way to align your investments with more responsible business practices.
Here’s a quick look at how it has performed recently:
| Period | Performance |
|---|---|
| 2025 | 17.37% |
| 2024 | 15.06% |
| 2023 | 19.64% |
| 2022 | -15.25% |
| 2021 | 14.82% |
This index aims to provide exposure to German large-cap companies that are considered leaders in sustainability. It’s worth noting that the specific ESG screening methodology can vary between index providers, so it’s always a good idea to check the details of any ETF tracking this index.
For instance, the Amundi DAX 50 ESG UCITS ETF DR (C) is one such option available, with its data calculated using figures from June 29, 2025. Understanding the underlying index’s construction is key to making an informed investment decision.
You can find more details on various DAX indices, including performance data, from sources like STOXX, which provides analysis on indices with a German investment focus. Germany’s DAX itself saw a positive rebound in April, which can influence the performance of its sub-indices.
9. F.A.Z. Index
The F.A.Z. Index, also known by its ticker FAZI, is a German stock market index. It’s managed by Solactive, a company that creates custom index solutions for investment products. This index tracks a selection of German companies, offering a broad view of the market. It’s not just about the biggest players; it aims to capture a wider range of German equities. For those looking to invest in the German market beyond just the DAX, the F.A.Z. Index provides an alternative. It’s worth noting that the performance of indices can vary significantly, and it’s always a good idea to check recent data. For instance, the FAZ Share live stock price was reported at 3,127.65 on August 5, 2025.
When considering ETFs that track this index, you’ll want to look for funds that aim to replicate its performance closely. This means minimizing tracking error, so the fund’s value closely mirrors the index’s movements. Amundi, for example, offers ETFs that track various indices, and you might find one that follows the F.A.Z. Index.
Here’s a quick look at how some German indices have performed recently (as of July 31, 2025), giving you a sense of the market landscape:
| Index Name | 1 Year Performance | 3 Year Performance |
|---|---|---|
| DAXplus® Maximum Dividend | 11.59% | 34.27% |
| DivDAX® | 13.53% | 40.40% |
| TecDAX® | 13.90% | 20.80% |
Remember, past performance isn’t a guarantee of future results. It’s important to research specific ETFs and understand their methodologies and fees before investing. You can find more information on exchange-traded funds, including trading symbols and descriptions, on various financial data websites. This can help you make a more informed decision about which ETFs best suit your investment goals.
10. FTSE Germany All Cap
The FTSE Germany All Cap index offers a broad look at the German stock market, covering large, mid, and small-cap companies. This means it gives you a really wide view of what’s happening across the German economy, not just the biggest players. It’s a good way to get a diversified exposure to German equities.
When considering the best ETF in Germany for your portfolio, the FTSE Germany All Cap index provides a solid foundation. It’s designed to track a significant portion of the German stock market, giving investors access to a diverse range of companies.
Key Features:
- Broad Market Exposure: Includes large, mid, and small-cap stocks, offering a more complete picture of the German market than indices focused only on larger companies.
- Diversification: By investing in an ETF tracking this index, you spread your investment across many different German businesses, which can help reduce risk.
- Potential for Growth: Captures the performance of the entire German equity market, allowing you to benefit from its overall growth.
Performance Snapshot (as of 31.07.2025):
| Index | 1 Year Return | 3 Year Return | 5 Year Return |
|---|---|---|---|
| FTSE Germany All Cap | 28.07% | 68.39% | 83.17% |
| DAX® | 29.35% | 75.29% | 83.17% |
As you can see, the FTSE Germany All Cap has shown strong performance, closely following the DAX® over longer periods. This suggests it’s a reliable benchmark for the German market. For instance, the Vanguard Germany All Cap ETF EUR Inc. has received a Medalist rating, indicating a sound investment process and a strong management team. This ETF offers low-cost, precise exposure to the German stock market, providing investors with access to German equities.
Investing in a broad index like the FTSE Germany All Cap can be a sensible approach for long-term investors looking for steady growth and diversification within the German market. It’s a way to capture the overall economic health of Germany through its stock market.
Looking into the FTSE Germany All Cap index? It’s a great way to see how big German companies are doing. Want to learn more about investing in Germany or other markets? Visit our website today for expert advice and insights to help you grow your money.
Wrapping Up Your German ETF Investment
So, we’ve looked at a few ways to get your money into German companies using ETFs. Whether you’re drawn to the big players in the DAX, the broader market with the FTSE Germany All Cap, or even specific sectors like technology or dividends, there are options out there. Remember to check the costs, like the expense ratio, and how the ETF is managed. It’s not about finding one ‚best‘ ETF for everyone, but the one that fits your own financial plan. Keep an eye on how these investments perform and adjust as needed. Happy investing!
Frequently Asked Questions
What exactly is an ETF?
Think of an ETF as a basket holding lots of different company shares. When you buy one share of the ETF, you’re actually buying a tiny bit of all the companies in that basket. It’s a simple way to spread your money across many companies at once, making it less risky than picking just one or two.
How can I invest in German companies using ETFs?
Investing in German stocks through ETFs is quite straightforward. You can buy shares of ETFs that track major German stock market indexes, like the DAX®. This gives you a stake in many of Germany’s biggest companies without having to buy each share individually.
What is the DAX® index?
The DAX® is like the main list of Germany’s 40 largest and most actively traded companies. Investing in an ETF that follows the DAX® means you’re investing in these top German businesses.
Are there ETFs that focus on specific types of German companies?
Yes, there are ETFs that focus on specific types of German companies. For example, some track companies that pay good dividends (DivDAX®), others focus on technology firms (TecDAX®), and some even exclude certain industries like banks.
How much does it cost to own a German ETF?
The cost of an ETF is usually shown as a ‚total expense ratio‘ or TER. For ETFs tracking German stocks, this is generally quite low, often between 0.08% and 0.16% per year. This means only a small part of your investment goes towards the ETF’s running costs.
What’s the difference between accumulating and distributing ETFs?
When you invest in an ETF, the money it makes from the companies it holds can either be paid out to you (like a dividend) or automatically reinvested back into the ETF to buy more shares. ETFs that reinvest are called ‚accumulating‘ or ‚Acc‘, while those that pay out are ‚distributing‘ or ‚Dist‘.
What should I consider when choosing a German ETF?
It’s a good idea to look at how well an ETF has performed in the past, how much it costs (its TER), and what kind of companies it invests in. Checking if it matches your own goals for investing, like aiming for growth or regular income, is also important.
How can I tell if a German ETF is a good investment?
While past performance doesn’t guarantee future results, looking at how an ETF has done over the last 1, 3, or 5 years can give you an idea of its potential. For example, the DAX® index showed strong growth over recent years, with a 1-year return of around 33.79% and a 3-year return of about 70.74%.