First of all: there will be no miraculous increase in money.

If the Dax is expanded from 30 to 40 members next September, the Dax score will not jump up.

Daniel Mohr

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

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Accordingly, nothing changes in the wealth of investors.

Your ETF value moves close to the index score.

The index formula is designed in such a way that a 40 is used instead of the number 30 in the variable of the index members.

This changes the weight of the individual members in the index and the previous 30 members of the index will have a little less weight.

According to the current status, they will make up around 90 percent of the new Dax.

The new ten values ​​would come to around 10 percent.

No dramatic effects

The exchange-traded index funds (ETF) will be restructured accordingly. Of course, the investor does not have to do anything. That is what the index provider does. In September 2021 he buys the ten new shares according to the calculated weight. Airbus will probably be the biggest change with a weight (according to the current status) of around 3.5 percent. As the second largest newcomer, Symrise would already have less than 1 percent. The "old" 30 Dax values ​​would be reduced somewhat in weight. The ETF providers have to sell their shares accordingly.

But this will not have any dramatic effects.

According to the BVI fund association, the Dax ETF currently has a fund volume of 13 billion euros.

With the Dax ETF providers, only about 1 percent of the Dax shares are.

If you add the influence of the Dax on the approval of active funds, whose fund managers are often based on the Dax, the influence becomes somewhat greater, but cannot be compared with the much larger ETF shares in the S & P-500 or in the MSCI World.

No more and no less yield

The costs of the ETF providers for the adjustment will be of no importance for the investors and will be compensated with the previous management fee.

The question remains, what will the matter bring for ETF owners?

Your index is spread a little wider.

Instead of 30, the risk is now divided into 40 values.

In return, there are more smaller companies.

In a backward calculation of the stock exchange how the Dax would have done with 40 values ​​in the past, the following picture emerges: The average return would have remained exactly the same.

The index fluctuations would have been slightly less.

The influence of the abolition of the trade turnover criterion is somewhat stronger.

As a result, the return fell slightly in the retrospective calculation and the exchange rate fluctuations increase slightly.

Investors in M-Dax ETFs should bear in mind that "their" index will lose around a third of its market value in autumn 2021. That doesn't change anything in terms of the fund's assets or the M-Dax's score. As with the Dax, only the weights are adjusted. But in the M-Dax, significantly smaller companies than before will be decisive. It doesn't have to be bad. Here, too, the back calculation did not reveal any major changes. After all: the return was even slightly higher at 7.1 percent per year (and anyway higher than in the Dax) and the volatility a little lower (and lower than in the Dax).

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