The best ETFs for German Dividend Stocks

How do I invest in German dividend stocks?

An investment in high-dividend-yielding stocks is a solid investment. Dividends are usually paid by the companies that are profitable and economically strong. For investors seeking regular income in times of low interest rates dividend stocks present an attractive investment.

There are two indices available to invest with ETFs in German high-dividend equities. This Investment Guide for German dividend stocks will help you navigate between the peculiarities of the DivDax index and the DAXplus Maximum Dividend index as well as ETFs that track them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.

0.25% p.a. - 0.32% p.a.
annual total expense ratio (TER) of German dividend ETFs
on German dividend stocks, which is tracked by ETFs
on German dividend stocks
The best indices for German dividend ETFs

The best German dividend ETF by 1-year fund return as of 30.11.16

All German dividend ETFs ranked by fund return

 

The largest German dividend ETF by fund size in EUR

All German dividend ETFs ranked by fund size

 

The cheapest German dividend ETF by total expense ratio

All German dividend ETFs ranked by total expense ratio

 
 

Indices on German Dividend Stocks compared

DivDax vs. DAXplus Maximum Dividend

DivDax® DAXplus® Maximum Dividend
Number of ETFs 3 ETFs 1 ETF
Number of constituents 15 20
Investment universe Dax: 30 German stocks HDax: 110 German stocks
Index rebalancing Annually
(September)
Semi-annually
(May and November)
Selection criteria Historical dividend yield,
last dividend paid distribution amount in relation to the stock price
Indicated dividend yield,
companies that pay a dividend in the next 6 months and have the highest indicated dividend yield, based on the closing price at the reporting date
Index weighting Market cap (free float)
(quarterly)
Dividend yield
(semi-anually)
Maximum weight per constituent 10% 10%

Source: justETF Research; As of 31/03/2014

 

DivDax®: The 15 best dividend stocks in the DAX

The DivDax contains the 15 companies with the highest dividend yield. Stock selection is based on the historical dividend yield of the DAX companies. The last dividend paid is crucial in relation to the price on the distribution date. The index is weighted by the free float market capitalization.

 

Methodology of the DivDax® Methodology

  • 15 DAX stocks with the highest dividend yield
  • Index rebalancing takes place annually in September
  • Stock selection is based on historical dividend yield
  • Index weighted by free float market capitalization
  • Maximum weight per constituent is 10%
 

DAXplus® Maximum Dividend: The 20 best dividend stocks in the HDax

The DAXplus Maximum Dividend Index focuses on stocks' indicated dividends. This index only includes companies that will pay a dividend in the next six months. It is theoretically possible that on the rebalancing date all the companies in the index would be replaced.

The stock selection of the DAXplus Maximum Dividend index includes 110 companies out of DAX, MDAX and TecDax. These three benchmark indices are summarized in HDax. Dividend yield plays a crucial role in the index weighting. This is done according to the indicated dividend yield calculated on the basis of the closing price of the shares at the time of selection.

 

Methodology of the DAXplus® Maximum Dividend Methodology

  • 20 stocks with the highest dividend yield from the HDAX Index (110 companies)
  • The HDax includes all companies in the DAX, MDAX and TecDax
  • Index rebalanced semi-annually in May and November
  • Stock selection is based on companies that pay a dividend in the next 6 months and have the highest expected dividend yield calculated on the basis of the closing price on the reporting date
  • Index weighted according to dividend yield
  • Maximum weight per constituent is 10%
 

German Dividend ETFs in comparison

The most important factors at a glance

When choosing a German dividend ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all German dividend ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all German dividend ETFs in detail
Compare all German dividend ETFs in a chart

Provider
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares DivDAX UCITS ETF (DE)DE0002635273 569 0.31% p.a. Distributing Germany Full replication
Deka DAXplus Maximum Dividend UCITS ETFDE000ETFL235 350 0.30% p.a. Distributing Germany Full replication
ComStage DivDax TR UCITS ETFLU0603933895 49 0.25% p.a. Accumulating Luxembourg Unfunded swap
ComStage 1 DivDAX UCITS ETFDE000ETF9033 20 0.25% p.a. Distributing Germany Full replication
WisdomTree Germany Equity UCITS ETF EUR AccDE000A142K45 2 0.32% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 07.12.16

 

Return comparison of all German dividend ETFs

The table shows the returns of all German dividend ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
ComStage 1 DivDAX UCITS ETF 0.19% 1.14% 3.50% -2.11% -
iShares DivDAX UCITS ETF (DE) 0.13% 1.10% 3.30% -2.16% 12.82%
ComStage DivDax TR UCITS ETF 0.19% 1.13% 3.53% -2.46% 12.34%
WisdomTree Germany Equity UCITS ETF EUR Acc -0.36% 0.43% 2.87% -3.59% -
Deka DAXplus Maximum Dividend UCITS ETF -4.59% -5.93% -5.58% -11.53% 8.85%
ETF   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
ComStage 1 DivDAX UCITS ETF 3.50% - - - -
iShares DivDAX UCITS ETF (DE) 3.46% 3.09% 4.22% 29.57% 27.95%
ComStage DivDax TR UCITS ETF 3.14% 2.67% 4.18% 30.43% 28.46%
WisdomTree Germany Equity UCITS ETF EUR Acc 0.72% - - - -
Deka DAXplus Maximum Dividend UCITS ETF -7.93% 13.17% 3.39% 26.52% 16.80%

Source: justETF.com; As of 30.11.16; Calculations in EUR including dividends