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 2 indices, which are tracked by ETFs. Besides these indices, 1 alternative index 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, 2 indices tracked by 3 ETFs are available. On the DAX® index there are 2 ETFs. On the MSCI Germany index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.09% p.a. and 0.25% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
DAX® |
Germany | 2 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 |
MSCI Germany |
Germany | 1 ETF | 58 (31/10/16) |
The MSCI Germany index tracks the leading stocks on the German market.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Lyxor DAX (DR) UCITS ETF EURLU0252633754 | 870 | 0.15% p.a. | Accumulating | Luxembourg | Full replication | |
| db x-trackers DAX UCITS ETF (DR) Income 1DLU0838782315 | 431 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi ETF MSCI Germany UCITS ETFFR0010655712 | 95 | 0.25% p.a. | Accumulating | France | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Germany | 4.67% | 8.75% | 20.61% | 39.38% | 34.25% | |
| DAX® | 4.63% | 8.78% | 20.98% | 40.22% | 34.11% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Germany | 11.58% | 23.48% | 2.96% | -4.55% | 28.83% | |
| DAX® | 11.65% | 23.32% | 2.87% | -4.56% | 28.46% |
Source: justETF.com; As of 31/05/17; 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 | 40.22% |
| 2 | db x-trackers DAX UCITS ETF (DR) Income 1D | 40.15% |
| 3 | Amundi ETF MSCI Germany UCITS ETF | 39.38% |
The cheapest Germany ETFs
by total expense ratio (TER)
| 1 | db x-trackers DAX UCITS ETF (DR) Income 1D | 0.09% p.a. |
| 2 | Lyxor DAX (DR) UCITS ETF EUR | 0.15% p.a. |
| 3 | Amundi ETF MSCI Germany UCITS ETF | 0.25% 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 1 alternative index on Germany tracked by 1 ETF. The total expense ratio (TER) of ETFs on these alternative indices is around 0.40% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| 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 | |
|---|---|---|---|---|---|---|
| db x-trackers Mittelstand & MidCap Germany UCITS ETF (DR) 1DIE00B9MRJJ36 | 56 | 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 | 7.77% | 15.58% | 29.47% | 44.98% | 50.32% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| Solactive Mittelstand Deutschland | 21.26% | 22.18% | 11.44% | - | - |
Source: justETF.com; As of 31/05/17; 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 3 indices on the Eurozone tracked by 14 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® 50 | Europe
Germany: 33.00% (31/10/2016) |
8 ETFs | 50 |
The EURO STOXX® 50 (total return) index tracks the 50 largest companies in the Eurozone.
Index factsheet |
| FTSEurofirst 80 | Europe
Germany: 33.81% (31/10/2016) |
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: 29.83% (31/10/2016) |
5 ETFs | 241 (06/04/17) |
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 EURO STOXX 50 UCITS ETF (Dist)IE0008471009 | 4,527 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| iShares Core EURO STOXX 50 UCITS ETF (Acc)IE00B53L3W79 | 3,314 | 0.10% p.a. | Accumulating | Ireland | Full replication | |
| db x-trackers EURO STOXX 50 UCITS ETF (DR) 1CLU0380865021 | 2,609 | 0.09% p.a. | Accumulating | Luxembourg | Full replication | |
| db x-trackers EURO STOXX 50 UCITS ETF (DR) 1DLU0274211217 | 2,112 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (LU) MSCI EMU UCITS ETF (EUR) A-disLU0147308422 | 1,928 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| iShares MSCI EMU UCITS ETF (Acc)IE00B53QG562 | 1,428 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| Amundi ETF MSCI EMU UCITS ETF DRFR0010655688 | 1,304 | 0.25% p.a. | Accumulating | France | Full replication | |
| db x-trackers MSCI EMU Index UCITS ETF (DR) 1DLU0846194776 | 1,122 | 0.15% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (LU) EURO STOXX 50 UCITS ETF (EUR) A-disLU0136234068 | 640 | 0.15% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR MSCI EMU UCITS ETFIE00B910VR50 | 303 | 0.18% p.a. | Accumulating | Ireland | Full replication | |
| Source EURO STOXX 50 UCITS ETF AIE00B60SWX25 | 212 | 0.05% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC EURO STOXX 50 UCITS ETF EURIE00B4K6B022 | 103 | 0.05% p.a. | Distributing | Ireland | Full replication | |
| Lyxor EURO STOXX 50 (DR) UCITS ETF C-EURLU0908501215 | 89 | 0.07% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares FTSEurofirst 80 UCITS ETFIE0004855221 | 25 | 0.40% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| EURO STOXX® 50 | 4.74% | 11.76% | 21.94% | 37.30% | 27.20% | |
| MSCI EMU | 5.26% | 12.45% | 22.20% | 37.71% | 32.67% | |
| FTSEurofirst 80 | 5.03% | 12.83% | 22.87% | 37.89% | 31.76% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| EURO STOXX® 50 | 12.51% | 21.62% | 0.78% | -2.35% | 23.91% | |
| MSCI EMU | 13.78% | 21.81% | 3.81% | -2.19% | 26.11% | |
| FTSEurofirst 80 | 13.92% | 21.88% | 1.98% | -1.45% | 24.63% |
Source: justETF.com; As of 31/05/17; Calculations in GBP based on the largest ETF of the respective index.