I read somewhere that DAX is a total return index and S&P 500 price return index. Though I know the difference between these two, I want to know which one you think is better for making overall gains.
See for yourself. The S&P 500 is the price return index that says dividends aren’t included in the return calculations. The DAX on the other hand is a complete return index.
If you’ve read an article by The Wall Street Journal, the DAX has the tendency to reach high while when speaking of price returns it can go lower than the previous peaks.
@Jill Read that and probably that’s the reason why the DAX can attain record highs when compared to the major European indices including CAC 40, IBEX 35, and more.
Don’t forget that it’s the largest market cap German companies that are backing the DAX. I won’t be wrong to compare DAX to the Dow Jonas Industrials Average rather than S&P 500.
Well the lower fees, lesser reliance on the fund manager’s competence, and then the market-wide diversification is what makes the indices one of the safest investments I’ve ever made.