Auto1 has just been promoted to the M-Dax.

Anyone who expected a price jump because of this news from Deutsche Börse is mistaken.

On the day of the announcement, the share was in the red and on the first trading day in the M-Dax last week too.

Well, what's the M-Dax anyway?

That's only the second division on the stock market.

Daniel Mohr

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

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    But the Dax jumps are no longer what they used to be. Siemens Energy, the youngest index newcomer, dragged its price by 30 euros to 32 euros in March after the announcement of the Dax inclusion and has now dropped to just under 26 euros. Euphoria looks different.

    It is worth taking a sober look at what such an index inclusion entails: more index funds invest (compulsorily) in the share, analysts and the media take a closer look. This only stimulates the course to a limited extent. The volume in Dax index funds is too low to provide a sustainable boost for the share. Many other funds are also based on the leading indices when investing money, which does not indicate the particular creativity of the financial market professionals. But that doesn't guarantee a good course either. See Wirecard. Well-known funds were heavily invested there, but it was only the increased attention of some media and analysts due to the DAX that caused the house of cards to collapse.

    It takes more than index membership for a stock to be successful. That can be the icing on the cake, after all, it brings a few ETFs as new shareholders with it. However, the recent past shows that in addition to Wirecard, Siemens Energy, MTU, Covestro, Pro 7 and Lanxess also disappointed in the Dax on balance. The index is included on the basis of good prices in the past. This is not a quality control to determine whether the business model promises success in the future. Every investor has to do it himself.

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