30 years of MDAX

The index for listed SMEs shows how much strength there is in the second tier of the German economy – with a total return of more than 1,000 percent since 1996, high resilience in crises, and a mix of industries that reflects the transformation from an industrialized country to an innovation-driven economy. How a supplementary index became an indispensable benchmark – and why looking at the MDAX today reveals more than ever before about the future viability of Germany as a business location.

Sometimes it is not the big names that drive an economy, but the many strong companies in between. Companies that are growing, innovative, and think internationally – yet remain firmly rooted in Germany. For 30 years now, the MDAX has been providing a stage for precisely these companies.

The MDAX was introduced on January 19, 1996. Today, three decades later, it is much more than just a supplementary index to the DAX: it is considered a reliable barometer for listed German SMEs and provides access to one of the most dynamic segments of the capital market.

From a secondary index to an established benchmark.

When the MDAX was launched, it comprised 70 companies from traditional industries. The aim was to represent those companies that followed the DAX stocks directly in the ranking by market capitalization and stock exchange turnover. Much has changed since then – both in the index itself and in the German economy.

The number of index members has been adjusted several times over the years: from 70 to 50, later to 60, and since 2021 back to 50 companies. This development is symbolic of the continuous refinement of the index methodology and the commitment to keeping the MDAX investable, transparent, and internationally comparable.

Growth with staying power

A look at long-term performance shows why the MDAX is so attractive to many investors: since its inception, it has gained more than 1,000 percent in terms of total return. This corresponds to an annualized return of around 8 percent – significantly outperforming the DAX over the same period.

What is remarkable here is not only the return, but also its resilience. Dot-com bubble, financial crisis, pandemic – the MDAX has experienced and survived all the major market upheavals of the past 30 years. For many, this is precisely a sign of its quality: growth yes, but not without substance.

Broad sectors, new focal points

While the industrial sector continues to play a central role, the MDAX is now much more diversified than it was ten or twenty years ago. Information technology, telecommunications, and specialized services are gaining in importance and giving the index a more modern profile. This mix makes the MDAX what it is today: a reflection of the structural change in the German economy—away from pure industry and toward more technology, innovation, and international orientation.