Germany’s blue-chip index is a eyeing a fresh record as investors warm to its tech-lite mix of relatively lowly-valued but high quality industrials, carmakers, insurance and healthcare companies. The DAX
DAX,
+1.33%,
which was the DAX 30 until 10 more companies were added in September 2021, at one point on Thursday was up more than 1.5% to sit less than 0.5% from its previous closing high of 16,271.75 hit in early January 2022.
One way for U.S. investors to track German stocks is via the Global X DAX Germany ETF
DAX,
+0.20%.
A broader European vehicle is the Vanguard FTSE Europe ETF
VGK,
-0.19%.
It’s been a long journey, but the DAX has finally caught back up with Wall Street after underperforming for much of the three years since the COVID-19 pandemic panic struck markets.
Indeed, since the S&P 500 hit its bear market trough in October 2022, as investors fretted about how multi-decade high inflation would cause the Federal Reserve to spike borrowing costs, the DAX 40 has rebounded 35% to the S&P’s 16%. So, what’s behind this rejuvenation? To simplify, many of the things that were making German …
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