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Difference between Performance Index and Price Index

Question by Stockman | 27/10/2017 at 19:32

I have seen that there are two different stock indices for the DAX (Deutscher Aktienindex, German Stock Index).

On the one hand, there is the so-called DAX Performance Index (ISIN DE0008469008, WKN 846900, Symbol DAX) and on the other hand, additionally, there is a so-called DAX Price Index (ISIN DE0008467440, WKN 846744, Symbol DAXK).

Can someone explain the difference between these indexes? I always thought that if there is only one DAX.

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Both the performance index and the price index contain the same 30 shares. However, there is a difference in the calculation:

  • Performance Index: For the performance index, the dividends from the DAX values are reinvested into the index for the calculation.
  • Price Index: The price index does not take the dividends into account and only the price development of the stocks counts.

Accordingly, performance index and price index have the same tendency, but the price index is ranking at less than half points compared to the performance index, because in the price index, the money from all of the dividend payments is missing.

If you are talking about the DAX in general (for example when media reports on it), in nearly all cases the performance index is meant.
28/10/2017 at 10:23

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