MDAX
The MDAX is a free-float market capitalization-weighted stock market index that tracks the performance of 50 mid-cap German companies listed in the Prime Standard segment of the Frankfurt Stock Exchange.[1][2] Calculated by STOXX Ltd. on behalf of Deutsche Börse since its launch on January 19, 1996, the index ranks immediately below the DAX in representing the German equity market, focusing on mid-sized industrials selected by criteria including market capitalization, order book volume, and free-float share percentage.[3][1][2] Constituents undergo quarterly fast-entry and fast-exit adjustments alongside semi-annual regular reviews to reflect evolving market dynamics and ensure liquidity thresholds are met.[2] As a key benchmark for investors, the MDAX provides insight into the growth potential and resilience of Germany's mid-cap sector, which often exhibits higher domestic revenue exposure compared to the export-heavy DAX firms and has delivered competitive long-term returns, averaging around 7.5% annually over the decade prior to 2023.[4][5]History
Inception and Early Years
The MDAX index was introduced on January 19, 1996, by Deutsche Börse AG to benchmark the performance of medium-sized German companies listed on the Frankfurter Wertpapierbörse.[6] It was designed to track the 50 stocks ranked 31st to 80th by free-float market capitalization and order book turnover, excluding those already in the DAX, thereby filling a gap between large-cap and smaller-cap representations in the German equity market.[7] The index adopted a base value of 1,000 points effective December 30, 1987, enabling retroactive performance calculations aligned with the DAX's historical framework.[8] At inception, the MDAX focused on established firms from traditional sectors such as manufacturing, chemicals, and engineering, reflecting Germany's industrial strengths, with eligibility requiring continuous listing in the Prime Standard segment and adherence to liquidity thresholds.[9] Unlike the DAX's emphasis on blue-chip giants, the MDAX highlighted mid-tier enterprises with significant domestic operations, providing investors a diversified view of corporate Germany beyond the top tier.[10] Initial constituents were selected based on December 1995 data, ensuring representation of companies with market capitalizations typically ranging from €500 million to several billion euros at launch.[11] During its early years from 1996 to 2000, the MDAX experienced volatility tied to broader European market trends, including the dot-com bubble's buildup, with annual reviews adjusting membership to maintain relevance amid shifting company sizes and liquidity.[7] By 1998, it had established itself as a key reference for mid-cap investment strategies, though it trailed the DAX in absolute returns during the late 1990s tech surge due to its sector composition favoring cyclical industrials over high-growth technology stocks.[12] Quarterly rebalancing ensured ongoing alignment with market dynamics, with minimal methodological changes in this period to preserve continuity.[11]Evolution and Reforms
The MDAX, positioned as Germany's primary mid-cap index, evolved from its 1996 launch by initially focusing on 50 constituents from traditional industrial and cyclical sectors, excluding technology firms which were routed to the separate TecDAX to maintain sectoral purity. This structure reflected early efforts to segment indices by economic cycles, with selection prioritizing free-float market capitalization and liquidity among Prime Standard-listed companies headquartered in Germany or Europe with significant domestic operations. Over subsequent decades, the index adapted to market growth, expanding to 60 stocks by the mid-2010s to capture a broader mid-cap universe while retaining quarterly rebalancing based on ranked eligibility.[7][13] A significant methodological reform in September 2018 dismantled the tech exclusion rule, integrating technology-eligible firms into the MDAX selection pool and dissolving prior sector barriers that had limited diversification. This change, driven by the increasing economic weight of tech in mid-caps, aimed to better mirror overall market composition and enhance the index's representativeness without diluting focus on non-tech heavyweights. The adjustment preceded broader DAX family updates, marking an early step toward methodology convergence with global peers like the S&P MidCap 400.[7][10] The landmark 2021 DAX indices reform, the most extensive in the benchmark's history, reshaped the MDAX by reducing its size to 50 constituents effective September 20, 2021, following the DAX's expansion to 40 blue-chips. This realignment introduced elevated quality thresholds, mandating timely audited annual and interim financial reports, a minimum 10% free-float, and liquidity metrics emphasizing trading volume over mere turnover to prioritize sustainable investability. Capping individual weights at 15% further mitigated concentration risks, while fast-exit provisions for delistings or non-compliance ensured ongoing integrity. These measures, informed by consultations with investors and index users, sought to bolster resilience against volatility and align with international standards amid criticisms of prior leniency in eligibility.[13][14] Subsequent refinements in the 2023-2024 overhaul phase refined data reporting and review processes, effective from March 18, 2024, incorporating enhanced scrutiny of profitability metrics like EBITDA alongside market cap for borderline inclusions. These updates, building on the 2021 framework, addressed post-pandemic liquidity shifts and regulatory evolutions, such as EU transparency rules, to sustain the index's utility for benchmarking without altering core mid-cap focus. Quarterly reviews continued to govern adjustments, with unscheduled changes triggered by mergers or compliance failures, as seen in periodic reshuffles like the June 2024 entrant/exit cycles.[15][16]Methodology
Selection and Eligibility Criteria
To be eligible for inclusion in the MDAX, companies must be listed in the Prime Standard segment of the Frankfurt Stock Exchange's Regulated Market and maintain continuous trading on Xetra.[4][13] They must also have a legal or operating headquarters in Germany, a minimum free float of 10%, and adhere to timely publication requirements for audited annual financial reports, half-yearly financial reports, and quarterly statements.[13] Companies primarily classified in technology sectors are directed to the TecDAX instead, leaving MDAX focused on mid-cap firms from classic industries.[4] Selection is based on quantitative ranking within the eligible universe, using a combined metric of free-float market capitalization and average daily order book volume over the preceding 12 months.[17][18] The MDAX comprises the 50 highest-ranked companies that fall below the DAX's top 40 in this ordering (typically ranks 41–90, adjusted for exclusions), ensuring representation of mid-sized firms ineligible for the DAX due to size or other factors but meeting liquidity thresholds.[13][2] Unlike the DAX, MDAX imposes no profitability requirement, such as positive earnings in recent fiscal years.[19] Ongoing eligibility for incumbents requires a minimum cumulative order book volume of €0.8 billion over the prior 12 months or a turnover rate of at least 10% of free-float shares traded.[2] Individual constituent weights are capped at 15% based on free-float market capitalization to mitigate concentration risk.[13] The MDAX was reduced from 60 to 50 constituents effective September 20, 2021, as part of broader DAX family reforms to enhance focus on higher-quality mid-caps.[13]Calculation and Weighting Method
The MDAX index employs a free-float market capitalization weighting methodology, wherein the weight of each constituent company is determined by its free-float market capitalization, calculated as the product of the company's share price, the number of shares outstanding, and the free-float factor representing the proportion of shares available to the public for trading.[2][20] This approach prioritizes liquidity and investability by excluding shares held by controlling interests or strategic investors, with free-float factors updated quarterly based on disclosures to Deutsche Börse.[3] The index is primarily computed as a performance index, incorporating both price returns and dividend payments to reflect the total return an investor would realize, including reinvested dividends on the ex-dividend date.[20][2] Prices are sourced from the Xetra electronic trading system of the Frankfurt Stock Exchange, with intraday calculations performed in real-time from 9:00 a.m. to 5:30 p.m. CET on each trading day, using the Las Vegas formula adjusted for corporate actions such as stock splits or capital increases via a dynamic divisor to maintain continuity.[11][2] To promote diversification and tradability, individual constituent weights are capped at 10% during quarterly reviews, with excess weighting redistributed proportionally among other components; this cap is applied after initial free-float adjustments but before final divisor normalization.[20][2] A price index variant excludes dividends, but the performance version serves as the primary benchmark.[20] The overall index level is derived by dividing the aggregate weighted market capitalization by the divisor, which is recalibrated during rebalancing to avoid artificial jumps.[2]Rebalancing and Review Process
The MDAX index composition is reviewed quarterly to ensure alignment with eligibility criteria, with changes implemented after the close on the third Friday of March, June, September, and December, or the subsequent Monday if that Friday is a holiday.[21][22] These reviews incorporate both semi-annual regular assessments in March and September—evaluating the full ranking of eligible securities based on free-float market capitalization and liquidity metrics—and quarterly fast reviews in June and December, which apply stricter thresholds to expedite entries and exits for companies experiencing rapid ranking shifts.[23][22] Under the regular review process, securities are ranked by average free-float market capitalization over the prior six months, with liquidity verified via trading volume; the MDAX selects the 50 companies ranking from 41st to 90th among all eligible Prime Standard listings on the Frankfurt Stock Exchange, subject to sector diversification buffers to prevent overconcentration.[23] Fast Exit rules trigger removal if a constituent falls below the 100th rank or fails liquidity standards (e.g., average daily trading volume under €1 million), while Fast Entry allows inclusion for securities ranking 35th or higher if a vacancy arises, using elevated hurdles to maintain stability and avoid frequent turnover.[24][17] This dual mechanism balances responsiveness to market dynamics with index integrity, as overseen by STOXX Ltd. under license from Deutsche Börse.[23] Rebalancing also enforces a 10% cap on individual component weights to mitigate concentration risk, with adjustments applied at review effective dates based on the prior month's end free-float shares and prices; weights are otherwise updated continuously in line with the index's free-float market capitalization methodology.[20] Corporate actions such as mergers, spin-offs, or delistings prompt ad-hoc reviews outside scheduled dates, with temporary suspensions or replacements determined by the index provider's guidelines to preserve representativeness.[23]Composition
Current Constituents
The MDAX index tracks the performance of 50 German mid-cap companies, ranked by free-float market capitalization immediately following those in the DAX, with eligibility requiring listing in the Prime Standard segment of the Frankfurt Stock Exchange and adherence to liquidity thresholds such as a minimum trading volume and free-float ratio of at least 10%.[1] These constituents are reviewed quarterly, with adjustments effective on the third Friday of March, June, September, and December, or unscheduled changes for events like mergers or delistings.[1] As of October 24, 2025, the index includes the following companies:[25]- AIXTRON SE
- Aroundtown SA
- Aurubis AG
- AUTO1 Group SE
- Bechtle AG
- Bilfinger SE
- Carl Zeiss Meditec AG
- CTS Eventim AG & Co. KGaA
- Delivery Hero SE
- Deutsche Wohnen SE
- DWS Group GmbH & Co. KGaA
- Evonik Industries AG
- Fielmann Group AG & Co. KG
- flatexDEGIRO Bank AG
- Fraport AG Frankfurt Airport Services Worldwide
- freenet AG
- FUCHS SE
- Gerresheimer AG
- HELLA GmbH & Co. KGaA
- HelloFresh SE
- HENSOLDT AG
- HOCHTIEF AG
- HUGO BOSS AG
- IONOS SE
- Jungheinrich AG
- K+S AG
- KION GROUP AG
- Knorr-Bremse AG
- KRONES AG
- LANXESS AG
- LEG Immobilien SE
- Lufthansa Group AG
- Nemetschek SE
- Nordex SE
- Porsche Automobil Holding SE (preferred shares)
- PUMA SE
- RATIONAL AG
- Redcare Pharmacy N.V.
- RENK Group AG
- RTL Group S.A.
- Sartorius AG (preferred shares)
- Ströer SE & Co. KGaA
- TAG Immobilien AG
- Talanx AG
- TeamViewer AG
- thyssenkrupp AG
- TRATON SE
- TUI AG
- United Internet AG
- WACKER Chemie AG
Sector and Industry Distribution
The MDAX index maintains a sector distribution that emphasizes traditional German strengths in manufacturing, engineering, and cyclical industries, differentiating it from the more diversified DAX by allocating greater weight to industrials and materials over financials or technology giants. This composition reflects the mid-cap focus on established exporters and specialized producers rather than global conglomerates, with limited exposure to utilities and energy, which together approach zero weight. As of October 22, 2025, the index's sector weights, proxied through tracking ETFs, highlight industrials at approximately 32-35%, underscoring vulnerability to global demand fluctuations and supply chain dynamics in Europe's export-driven economy.[28][29]| Sector | Approximate Weight (%) | Key Characteristics |
|---|---|---|
| Industrials | 32-35 | Dominated by machinery, automotive suppliers, and logistics firms, representing core German engineering expertise.[29][28] |
| Consumer Discretionary | 16-18 | Includes retail, apparel, and leisure companies, sensitive to domestic consumption and tourism recovery.[29] |
| Materials | 12 | Focused on chemicals and metals processing, tied to industrial inputs and commodity cycles.[28] |
| Information Technology | 10 | Mid-tier software and hardware providers, less concentrated than in broader tech indices.[29] |
| Communication Services | 8 | Media and event-related firms, benefiting from post-pandemic experiential spending.[29] |
| Real Estate | 7 | Property developers and REITs, exposed to commercial and residential market shifts.[29] |
| Healthcare | 6 | Medical devices and biotech mid-caps, with growth potential in precision manufacturing.[29] |
Historical Changes in Membership
The MDAX index was launched on January 19, 1996, initially comprising 70 companies selected from traditional sectors based on market capitalization and order book turnover, ranking immediately below the DAX constituents in the Prime Standard segment of the Frankfurter Wertpapierbörse.[11][7] This structure aimed to represent Germany's mid-sized enterprises, with membership determined by free-float market capitalization and liquidity criteria, subject to semi-annual reviews in March and September. Unscheduled changes were implemented for corporate events like delistings or mergers, ensuring the index reflected ongoing market dynamics without fixed sector quotas at inception.[30] On March 24, 2003, Deutsche Börse reorganized its equity indices, reducing the MDAX from 70 to 50 constituents to concentrate on the uppermost mid-cap tier and enhance representativeness amid evolving market conditions.[31] This adjustment prioritized companies with the highest free-float market caps following the DAX, excluding smaller or less liquid firms, while maintaining exclusion of technology-heavy stocks segregated into the separate TecDAX index. Subsequent membership shifts involved promotions from the SDAX or demotions to it, alongside replacements for companies failing eligibility due to insufficient liquidity or segment downgrades; for instance, early post-reform changes included additions like industrial firms gaining prominence through earnings growth.[7] A significant methodological reform occurred on September 24, 2018, expanding the MDAX to 60 constituents and eliminating the prior bifurcation between "classic" (non-tech) and technology sectors, thereby integrating select TecDAX-eligible firms to broaden mid-cap coverage.[32] This change responded to the growing economic role of technology in German mid-sized firms, with additions drawn from the top-ranked eligible stocks by average free-float market cap over six months, resulting in inflows for companies like Bechtle AG. The expansion temporarily increased diversification but preserved semi-annual rebalancing to rank and select the 60 largest qualifying mid-caps post-DAX.[33] In September 2021, following the DAX's enlargement from 30 to 40 companies—prompted by governance lapses such as the Wirecard scandal—the MDAX reverted to 50 constituents effective with the review, as 10 former MDAX firms ascended to the DAX.[10] This contraction realigned the index to its core mid-cap focus, with deletions offset by SDAX promotions based on updated rankings; additional rules mandated minimum liquidity, timely financial reporting, and audit committees for eligibility.[7] Ongoing adjustments, such as the March 2024 replacements involving Evotec SE for Aroundtown SA, underscore the index's responsiveness to performance metrics, with no net size change since.[34]Performance
Historical Returns and Volatility
The MDAX index, back-calculated to a base value of 1,000 points as of December 30, 1987, has grown to approximately 30,010 points as of October 23, 2025, reflecting a long-term compounded annual growth rate of roughly 9.4% over nearly 38 years, inclusive of dividends in its performance version.[35] [8] This return incorporates reinvested dividends and accounts for the index's focus on mid-cap firms, which often exhibit higher growth potential but greater exposure to domestic economic cycles compared to large-cap peers in the DAX.[2] Shorter-term performance has varied significantly, with the index posting positive annual returns in 18 of 25 years (72%) from 2000 to 2024.[36] Over the decade ending in 2023, annualized returns averaged 7.5%, outperforming the DAX's 6.8% in the same period due to mid-caps' relative resilience in recovery phases.[5] From its official launch on January 19, 1996, through early 2021, the MDAX achieved an annualized return of 10.9%, navigating crises including the 1998 Asian financial turmoil, the 2000 dot-com bust, the 2007-2008 global financial crisis, and the 2020 COVID-19 downturn.[7]| Year | MDAX Annual Return (%) |
|---|---|
| 2017 | 18.08 |
| 2018 | -17.61 |
| 2019 | 31.15 |
| 2020 | 8.77 |