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Frankfurt / Main (dpa) - The little brother of the German leading index Dax has a birthday: The MDax will be 25 years old this Tuesday.
In keeping with the anniversary and much to the delight of investors, the index continued its record rally at the start of the new year 2021.
In any case, the MDax, which contains the 60 largest companies below the Dax values in terms of market capitalization and stock exchange turnover, is a success story.
Despite its shorter history, the calculation base for the index of medium-sized stocks - as for the Dax - was set at 1000 points on December 30, 1987.
And the development is impressive: since then, it has increased its value 31 times, leaving its bigger brother well behind.
In the same period of time, the Dax grew 14 times.
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There are a number of reasons for this better performance.
The companies in the MDax are mostly smaller than the big ships in the Dax.
That makes them more flexible, they can react faster to changes in the environment.
A number of them are also among the world market leaders or at least among the leading providers in their respective industries.
The DZ Bank experts emphasized some time ago that there is also a greater mix of companies with fresh growth in the smaller indices.
Meanwhile, the MDax is facing a major change in its anniversary year.
As part of an index reform at Deutsche Börse, the Dax will be increased by ten values to 40 in September;
In return, the MDax for medium-sized stocks has shrunk - two years after it was expanded from 50 to 60 - to 50 companies again.
© dpa-infocom, dpa: 210119-99-83144 / 2