Term · Market & Classification
SDAX
In briefThe SDAX is Deutsche Boerse's small-cap selection index and sits below the DAX and MDAX in the hierarchy. In the German market it marks the upper limit of what still counts as a small cap in the narrower sense.
Definition
A selection index of Deutsche Boerse for smaller listed companies below the MDAX and DAX.
How it is calculated
Formula. Composition by market capitalisation and trading volume in accordance with the Deutsche Boerse rulebook.
Why it matters for small caps
It marks the upper limit of what in Germany still counts as a 'small cap' in the narrower sense.
Common misreadings
- SDAX membership is mistakenly read as a quality seal, although it is primarily a size and liquidity criterion.
In the process
Frequently asked
What is the SDAX?
It is a stock index that bundles the smaller listed stocks below the larger German indices. It maps the upper edge of the small-cap segment.
How is the SDAX composed?
The selection is based on market capitalisation and trading volume in accordance with Deutsche Boerse's rulebook. Inclusion is therefore primarily a size and liquidity criterion.
Is SDAX membership a quality seal?
No, it says nothing about the quality of the business model. It primarily reflects size and tradability.
Related terms
Sources
Primary
STOXX – Guide to the DAX Equity Indices
https://www.dax-indices.com/document/Resources/Guides/DAX\_Equity\_Indices.pdf
https://www.dax-indices.com/document/Resources/Guides/DAX\_Equity\_Indices.pdf
Methodology
Deutsche Börse – DAX-Indexfamilie
https://www.dax-indices.com/
https://www.dax-indices.com/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.