$CSPX (+0,53 %)
$IWDA (+0,48 %)
$EIMI (+1,55 %)
$CSNDX (+0,92 %)
$ACWI (+0,76 %)
$VUSA (+0,56 %)
$VWRL (+0,79 %)

In the case of geopolitical escalations, the average daily loss is 1.2%, the average total loss is 5% and the recovery time is around 47 days.

Just keep calm, stay true to your strategy and don't panic sell ✌️

The historical reaction of the S& P 500 ($CSPX (+0,53 %)
$VUSA (+0,56 %) ) to important geopolitical events:

Geopolitical shocks usually only have a short-term impact on the performance of the stock markets.

$CSPX (+0,53 %)
$IWDA (+0,48 %)

Just like the Consumer Price Index (CPI) yesterday, the Producer Price Index (PPI) better than expected 👌

2.6 % VS 2.6 % year-on-year ✅

0.1 % VS. 0.2 % MoM ✅

3.0 % VS. 3.1 % YoY CORE ✅

0.1 % VS. 0.3 % MoM CORE ✅

Inflation continues to show a downward trend 🚀

Let's see how the market reacts

Introduction

Every day I actually see how many points the DAX, the S&P 500 or the Dow Jones move up or down. Ultimately, however, I have never understood exactly how the points are calculated, and after coming across wild theories on the Internet such as "the DAX automatically rises by 100 points every day", I thought it was time to look into the subject.

And I would like to share my research with you in this article.

1. fundamentals

Index points are the unit of measurement used to indicate the current level of a stock market index. An index point is independent of any currency. A share index summarizes the performance of selected shares and calculates an overall value, which is then given as a number of points. The calculation method is not standardized and differs from index to index, which is why we have to note that the Dow Jones and the DAX, for example, cannot be directly compared using the number of points. So far so theoretical.

2 How is the DAX calculated?

The DAX comprises the 40 largest listed companies in Germany. It was launched in 1988 and opened at 1163.52 points. But now the calculation:

The calculation is based on the free float market capitalization, which means that only the actual freely tradable shares of a company are taken into account. In the DAX, each company is weighted according to the proportion of its free float market capitalization in relation to the total value of all companies included in the index. In order to keep volatility low, Deutsche Börse imposes a cap whereby a company may not account for more than 15% of the DAX. Changes in the proportion of a company's free float shares are only adjusted quarterly. This means that if a major shareholder buys or sells shares and the number of freely tradable shares therefore changes, the proportion is adjusted every quarter. The dividends are mathematically reinvested in the DAX and the DAX is therefore a performance index. There is no direct formula that we can apply, but in simplified terms the formula is

DAX = (price x number of shares in free float) ÷ divisor.

This divisor is determined by the German stock exchange and is there to absorb capital measures (share splits). Unfortunately, the divisor is not easily accessible to the public and is constantly being adjusted.

So unfortunately I can't calculate the DAX itself, but basically the index points represent a portfolio that invests in the 40 companies broken down by free float market capitalization (including dividends). Any theories that the DAX is subject to arbitrary measures such as "100 points per day" are therefore nonsense.

3 How is the Dow Jones calculated?

The Dow Jones Industrial Average (Dow Jones for short) is one of the oldest share indices in the world and comprises 30 large, major US companies. In contrast to the DAX, the Dow Jones is not based on market capitalization, but is price-weighted. This means that shares with a higher share price have a greater influence on the index score - regardless of the size of the company. A company with a share price of USD 300 therefore has a greater impact on the Dow Jones than a company with a share price of USD 50, even if the latter has a larger market capitalization. Dividends are not reinvested in the Dow Jones, which is why it is a price index. The formula is simplified:

Dow Jones = sum of the share prices of the 30 companies ÷ divisor

Here, too, there is a divisor that is adjusted in the event of capital measures in order to ensure the continuity of the index. Due to the way it is calculated, the Dow Jones is not as representative of the entire US market as other indices, but historically enjoys a great deal of media attention.

4 How is the S&P 500 calculated?

The S&P 500 is a much broader-based index than the Dow Jones. It comprises the 500 largest listed US companies, which are weighted according to their free float market capitalization - similar to the DAX. This makes the S&P 500 a very good reflection of the US market as a whole. The calculation is therefore based on how large the freely tradable market capitalization of a company is in relation to the total value of all companies included in the index. Companies with a larger market capitalization (such as Apple, Microsoft or Amazon) have a greater influence on the index movement. There is no cap on the S&P 500 and the 5 largest companies already make up 20-25% of the entire index. The S&P 500 is a price index, which means that dividends are not reinvested. The simplified formula is

S&P 500 = (sum of weighted market capitalizations) ÷ divisor

A divisor is also used here to neutralize capital measures. Analysts and fund managers consider the S&P 500 to be one of the most important and informative indices worldwide, as it covers a wide range of sectors and company sizes.

Even though I am unfortunately unable to calculate the individual indices myself, as the divisor literally throws a spanner in the works, I have still learned a few new things and hope that you have been able to share in them...

HG Small investor

PS: If you have a few points left on getquin, I'd be delighted too...

Sources

https://www.boerse.de/grundlagen/index-grundlagen/Berechnung-von-Indizes

https://www.hsbc-zertifikate.de/dam/jcr:b9b5c32f-ad2d-407a-ae4f-208d9e5ef394/202406_so_wird_der_dax_berechnet.pdf

https://www.flatex.de/boersenwissen/aktien-und-indizes/dow-jones/

https://www.sparkasse.de/pk/ratgeber/finanzglossar/dax.html

https://www.hermoney.de/boerse-geldanlage/etf/indizes-berechnung/

https://de.m.wikipedia.org/wiki/DAX

https://www.deutsche-boerse.com/dbg-de/media/news-stories/explainers/DAX-Index-Benchmark-und-Barometer-f-r-die-deutsche-Wirtschaft-148654

And some more... (Just ask me for specific sources)

$DAX
$DAX
$CSPX (+0,53 %)
$VUSA (+0,56 %)

$ICHN (+1,54 %)
$BTC (+1,28 %)
$IWDA (+0,48 %)
$CSPX (+0,53 %)
$EIMI (+1,55 %)

The Chinese central bank carries out a reverse repo transaction and pumps 1 trillion yuan (139 billion US dollars) into the market.

This could continue to boost the markets and, in particular, the expansion of the $BTC (+1,28 %) 🚀

In practice, this means that this is quantitative easing.

An easing of monetary policy and liquidity maneuvers with a strategic goal:

1. hedging the systemic weakness of the Chinese economy (especially local governments, the real estate sector and the manufacturing industry).

2. signal control in domestic markets to suppress volatility and prevent panic.

3. increase risk appetite in global capital markets as liquidity flows outward.

It will be interesting to see how the markets react.

What would you do with the ETFs if you were me? Merge and put everything in the $VWRL (+0,79 %) or with $IWDA, $XMME (+1,54 %) and $CSPX (+0,53 %) continue? Or simply take more risk without $XMME? (+1,54 %)

savings rate is 1000€.

$CSPX (+0,53 %)
$IWDA (+0,48 %)
$EIMI (+1,55 %)
$ISAC (+0,73 %)
$CSNDX (+0,92 %)
$WSML (+0,6 %)

$IWDA (+0,48 %)
$CSPX (+0,53 %)
$EIMI (+1,55 %)
$CSNDX (+0,92 %)
$ISAC (+0,73 %)
$US09258C4188
$VWRL (+0,79 %)
$VWCE (+0,59 %)
$VUSA (+0,56 %)
$VA

U.S. COURT OF INTERNATIONAL TRADE INVALIDATES PRESIDENT TRUMP'S TARIFFS UNDER THE IEEPA - THE PRESIDENT IS NOT AUTHORIZED TO IMPOSE TARIFFS UNILATERALLY.

The President is not authorized to impose comprehensive tariffs under the IEEPA. The Trump administration has already filed an appeal

US court blocks most Trump tariffs, says president exceeded his authority

In a sweeping new ruling, the U.S. Court of International Trade has just blocked President Trump's Liberation Day tariffs, saying that authority is with Congress.

FACT CHECK: While the Constitution grants Congress the power to impose tariffs, Congress delegated much of that power to the Executive Branch in the Trade Expansion Act of 1962, which allows for adjustments to tariff rates without needing Congressional action. Courts have given the executive branch broad authority to negotiate trade, that is until now.

https://www.reuters.com/world/us/us-court-blocks-trumps-liberation-day-tariffs-2025-05-28/

https://www.theguardian.com/us-news/2025/may/28/us-court-blocks-trump-tariffs

https://www.cnbc.com/amp/2025/05/29/court-strikes-down-trump-reciprocal-tariffs.html

https://www.nytimes.com/2025/05/28/business/trump-tariffs-blocked-federal-court.html

I am currently using the $ISAC (+0,73 %) I am broadly diversified and generally well positioned, but I would like to be able to weight certain regions independently. I am thinking of the following ETF model:

• An MSCI WORLD EX USA, e.g. $EXUS (+0,55 %)
• 
  The classic S&P 500 $CSPX (+0,53 %)
• 
  An emerging markets ETF, e.g. $VFEM (+1,2 %)

My idea would be (savings plan):

• $EXUS (+0,55 %) 40%
• $CSPX (+0,53 %) 45%
• $VFEM (+1,2 %) 15%

What do you think of the selected ETFs? How would you weight the ETFs in a savings plan with a view to the future?