The MDAX Index is a benchmark for German mid-cap equities, comprising 50 companies that represent the next tier of industry leaders listed on the Frankfurt Stock Exchange. Specifically, the stocks are listed in the Prime Segment of Deutsche Boerse and follow the 30 DAX companies.
Germany's MDAX Index Price & Chart
This index offers investors exposure to only companies in the traditional sectors, predominantly those in the pharmaceuticals, chemicals, engineering and financial sectors. It reflects the growth potential of Germany's mid-sized firms.
The index was launched in January 1996.
MDAX Price & Chart
After a decline throughout most of 2022, the index, after rising slightly from its lows that year, has remained rangebound since, struggling to gain any upside momentum. However, 2025 has so far (as of February 24) been positive.
| Period | Performance (as of February 2025) |
|---|---|
| Year-to-date Performance | +8.75% |
| 1-Year Performance | +6.62% |
| 3-Year Performance | -14.94% |
| 5-Year Performance | -5.11% |
MDAX Index Top 10 Companies
| Company | Market Cap (As of February 2025) |
|---|---|
| GEA Group | $9.45 Billion |
| Scout24 | $7.39 Billion |
| Nemetschek | $14.12 Billion |
| Lufthansa | $8.24 Billion |
| CTS Eventim | $10.56 Billion |
| Delivery Hero | $9.49 Billion |
| Leg Immobilien | $6.24 Billion |
| Knorr-Bremse | $13.88 Billion |
| Talanx | $23.83 Billion |
| Evonik Industries | $9.72 Billion |
German Mid-Cap Stocks Forecast
The Bull Argument: Analysts with a bullish view of German mid-cap stocks point to the inherent growth opportunities within mid-cap companies. The firms are often more nimble and capable of capitalising on emerging trends than larger, more established corporations.
While the German economy is facing difficulties, those with a more positive outlook for 2025 may see German mid-cap stocks as well-positioned to benefit from increasing domestic and international demand. Proponents argue that robust earnings growth and favourable market conditions will drive the index higher over the long term. Elsewhere, investors may look to the reaction in German stocks following the country's election as a positive.
The Bear: On the other hand, those with a bearish view have highlighted the risks associated with mid-cap stocks, which can be particularly sensitive to economic downturns and external shocks. With the German economy struggling, investors may continue to be cautious. In its 2025 outlook released in December 2024, Goldman Sachs noted that economic data had been weak, and “the manufacturing cycle, which particularly impacts Germany, has been really dire.”
Goldman Sachs says if there is an improvement in manufacturing in Germany it could help lift European stocks in 2025.
Even so, rising input costs, global supply chain disruptions, tariffs and intensified competition may pressure profit margins.
Our View: While the German economy has run into headwinds and the MDAX Index has been rangebound, certain types of investors may feel there is a turnaround opportunity at a compelling entry point. Although mid-caps are subject to cyclical fluctuations and external economic pressures, the long-term prospects are boosted by solid fundamentals and innovation. While it may not be for everyone, certain types of investors may want to take a closer look at ETFs tracking German mid-cap stocks (see below for some examples).
Who Should Invest in German Mid-Cap Stocks?
For investors who are bullish on German mid-cap names and the MDAX index specifically, the iShares MDAX UCITS ETF (DE) is an option as it aims to track the performance of the index. Another potential ETF option is the iShares MSCI Germany ETF (EWG), which aims to track the investment results of a basket of large and mid-cap German stocks.Â
Overall, investors with the following characteristics may find opportunities in German mid-cap stocks.
- Growth-Oriented: Those looking to harness the potential upside from Germany’s mid-cap companies, which often exhibit robust growth characteristics.
- Bargain Hunters: While we are not saying German mid-cap stocks are cheap (or expensive, for that matter), some investors may see the dip in 2022 and the rangebound nature over the past couple of years as an opportunity.
- Risk-Tolerant: Investors with a higher risk appetite who can manage short-term volatility in exchange for long-term capital appreciation.
- Long-Term Investors: Individuals with a long investment horizon can benefit from the compounding growth of German mid-cap stocks that may be positioned for future expansion.
Diversification Seekers: Adding mid-cap exposure can enhance portfolio diversification, balancing out larger-cap holdings with more dynamic, agile companies.
