How to invest in Germany using ETFs
How do I invest in German stocks?
The easiest way to invest in the whole German stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the German stock market you find 1 index, which is tracked by ETFs. Besides these indices, 2 alternative indices on small and mid caps as well as single sectors and dividend strategies is available.
As further alternative, you can consider indices on Europe. In the below listed indices Germany is weighted with around 30%.
Performance of German stocks (DAX®)
Indices in comparison
The best indices for ETFs on Germany
For an investment in the German stock market, 1 index tracked by 6 ETFs are available. On the DAX® index there are 6 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.09% p.a. and 0.16% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
DAX® |
Germany | 6 ETFs | 30 |
The DAX® (price) index tracks the 30 largest and most traded German stocks listed on the Prime Standard segment of the Frankfurt Stock Exchange.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core DAX UCITS ETF (DE)DE0005933931 | 6,106 | 0.16% p.a. | Accumulating | Germany | Full replication | |
| Xtrackers DAX UCITS ETF 1CLU0274211480 | 3,294 | 0.09% p.a. | Accumulating | Luxembourg | Full replication | |
| Lyxor DAX (DR) UCITS ETF EURLU0252633754 | 751 | 0.15% p.a. | Accumulating | Luxembourg | Full replication | |
| Xtrackers DAX UCITS ETF Income 1DLU0838782315 | 446 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi ETF DAX UCITS ETF DRFR0010655712 | 102 | 0.10% p.a. | Accumulating | France | Full replication | |
| Vanguard DAX UCITS ETFIE00BG143G97 | 7 | 0.10% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| DAX® | -4.94% | -12.31% | -12.65% | -17.28% | 19.27% |
| Index | 2019 in % |
2018 in % |
2017 in % |
2016 in % |
2015 in % |
|
|---|---|---|---|---|---|---|
| DAX® | -17.28% | -17.28% | 16.42% | 23.85% | 3.17% |
Source: justETF.com; As of 31/12/18; Calculations in GBP based on the largest ETF of the respective index.
The best Germany ETFs
by 1 year return
| 1 | Lyxor DAX (DR) UCITS ETF EUR | -17.25% |
| 2 | iShares Core DAX UCITS ETF (DE) | -17.28% |
| 3 | Xtrackers DAX UCITS ETF 1C | -17.30% |
The cheapest Germany ETFs
by total expense ratio (TER)
| 1 | Xtrackers DAX UCITS ETF 1C | 0.09% p.a. |
| 2 | Xtrackers DAX UCITS ETF Income 1D | 0.09% p.a. |
| 3 | Amundi ETF DAX UCITS ETF DR | 0.10% p.a. |
German indices on small and mid caps or dividend strategies
Alternatively, you can consider indices on small and mid caps, single sectors or dividend strategies. In order to compare the ETFs for the best German dividend strategies have a look at the Investment Guide on German Dividend Strategies. In total you can invest in 2 alternative indices on Germany tracked by 2 ETFs. The total expense ratio (TER) of ETFs on these alternative indices is between 0.40% p.a. and 0.51% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MDAX® | Germany
Mid Cap |
1 ETF | 50 |
The MDAX® index tracks 50 German mid cap stocks which are listed on the Prime Standard segment of the Frankfurt Stock Exchange.
Index factsheet |
| Solactive Mittelstand Deutschland | Germany
Mid Cap |
1 ETF | 70 |
The Solactive Mittelstand Deutschland Index tracks the largest 70 German mid cap companies excluding financial services.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MDAX UCITS ETF (DE)DE0005933923 | 1,391 | 0.51% p.a. | Accumulating | Germany | Full replication | |
| Xtrackers Mittelstand & MidCap Germany UCITS ETF 1DIE00B9MRJJ36 | 89 | 0.40% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| Solactive Mittelstand Deutschland | -5.62% | -16.13% | -17.75% | -22.62% | 28.98% | |
| MDAX® | -6.75% | -15.63% | -15.12% | -16.81% | 24.57% |
| Index | 2019 in % |
2018 in % |
2017 in % |
2016 in % |
2015 in % |
|
|---|---|---|---|---|---|---|
| Solactive Mittelstand Deutschland | -22.62% | -22.62% | 36.18% | 22.40% | 11.44% | |
| MDAX® | -16.81% | -16.81% | 21.39% | 23.37% | 15.09% |
Source: justETF.com; As of 31/12/18; Calculations in GBP based on the largest ETF of the respective index.
Europe indices with a large share of Germany
Besides Germany ETFs you may consider ETFs on the European stock markets. In total, you can invest in 4 indices on the Eurozone tracked by 18 ETFs. All Eurozone indices weight Germany with around 30% to 33%. The total expense ratio (TER) of ETFs on the Eurozone is between 0.05% p.a. and 0.40% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| EURO STOXX® | Europe
Germany: 29.50% (29/12/2017) |
1 ETF | 302 (06/09/18) |
The EURO STOXX® Index tracks stocks from Euro zone countries included in the STOXX® Europe 600 Index. The STOXX® Europe 600 Index tracks large, mid and small capitalisation stocks from European developed countries.
Index factsheet |
| EURO STOXX® 50 | Europe
Germany: 33.30% (29/12/2017) |
10 ETFs | 50 |
The EURO STOXX® 50 (total return) index tracks the 50 largest companies in the Eurozone.
Index factsheet |
| FTSEurofirst 80 | Europe
Germany: 34.06% (29/12/2017) |
1 ETF | 80 |
The FTSEurofirst 80 Index tracks the 60 largest Euro zone companies measured by market capitalisation in the FTSE Euro zone Index and 20 additional companies selected for their size and sector representation.
Index factsheet |
| MSCI EMU | Europe
Germany: 30.19% (29/12/2017) |
6 ETFs | 248 (31/08/18) |
The MSCI EMU (European Economic and Monetary Union) index tracks large and mid cap stocks from countries in the European Economic and Monetary Union.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core EURO STOXX 50 UCITS ETF EUR (Dist)IE0008471009 | 3,694 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| iShares Core EURO STOXX 50 UCITS ETF (Acc)IE00B53L3W79 | 3,008 | 0.10% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers EURO STOXX 50 UCITS ETF 1CLU0380865021 | 2,587 | 0.09% p.a. | Accumulating | Luxembourg | Full replication | |
| Xtrackers EURO STOXX 50 UCITS ETF 1DLU0274211217 | 2,306 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| Xtrackers MSCI EMU Index UCITS ETF 1DLU0846194776 | 1,813 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (LU) MSCI EMU UCITS ETF (EUR) A-disLU0147308422 | 1,617 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| iShares Core MSCI EMU UCITS ETF EUR (Acc)IE00B53QG562 | 1,377 | 0.12% p.a. | Accumulating | Ireland | Full replication | |
| Amundi Index MSCI EMU UCITS ETF - EUR (C)LU1602144575 | 1,219 | 0.25% p.a. | Accumulating | Luxembourg | Full replication | |
| UBS ETF (LU) EURO STOXX 50 UCITS ETF (EUR) A-disLU0136234068 | 416 | 0.15% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor Core MSCI EMU (DR) UCITS ETFLU1646360971 | 364 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR MSCI EMU UCITS ETFIE00B910VR50 | 306 | 0.18% p.a. | Accumulating | Ireland | Full replication | |
| Invesco EURO STOXX 50 UCITS ETFIE00B60SWX25 | 299 | 0.05% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC EURO STOXX 50 UCITS ETF EURIE00B4K6B022 | 105 | 0.05% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Core Euro Stoxx 50 (DR) UCITS ETFLU0908501215 | 87 | 0.05% p.a. | Accumulating | Luxembourg | Full replication | |
| Invesco EURO STOXX 50 UCITS ETF - DistributingIE00B5B5TG76 | 39 | 0.05% p.a. | Distributing | Ireland | Unfunded swap | |
| iShares FTSEurofirst 80 UCITS ETFIE0004855221 | 23 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| Vanguard Euro STOXX 50 UCITS ETFIE00BF4R5F15 | 14 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| Lyxor EURO STOXX 300 (DR) UCITS ETF D-EURLU0908501132 | 8 | 0.07% p.a. | Distributing | Luxembourg | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI EMU | -5.14% | -11.68% | -11.15% | -11.69% | 26.85% | |
| FTSEurofirst 80 | -5.30% | -11.45% | -11.02% | -11.63% | 26.29% | |
| EURO STOXX® | -5.33% | -12.21% | -11.56% | -11.43% | 30.14% | |
| EURO STOXX® 50 | -4.86% | -10.68% | -10.22% | -10.83% | 23.80% |
| Index | 2019 in % |
2018 in % |
2017 in % |
2016 in % |
2015 in % |
|
|---|---|---|---|---|---|---|
| MSCI EMU | -11.69% | -11.69% | 17.48% | 22.28% | 3.89% | |
| FTSEurofirst 80 | -11.63% | -11.63% | 16.61% | 22.56% | 1.91% | |
| EURO STOXX® | -11.43% | -11.43% | 18.24% | 24.27% | 4.35% | |
| EURO STOXX® 50 | -10.83% | -10.83% | 13.65% | 22.16% | 0.66% |
Source: justETF.com; As of 31/12/18; Calculations in GBP based on the largest ETF of the respective index.