The European Market Brief 31: Germany at a Crossroads - DAX Resilience and Investor Opportunities

Despite German economic headwinds, the DAX trades as a global earnings proxy since roughly 80% of constituent revenue originates outside Germany.

• DAX is a global, not German, trade: Roughly 80% of DAX constituent revenue comes from outside Germany (68% for mid-cap DAX, 57% for small-cap), vs. ~20% for the Russell 2000, per Russell Rhoads.
• SAP drove the quarter: Rhoads notes the DAX would have been negative in Q3 without SAP, the index's largest tech contributor.

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