For investors looking to gain exposure to the German equity market, various funds and ETFs provide access to German stocks. These funds track different indices or sectors within the German economy, offering a mix of growth, stability, and diversification.
Below are some of the most popular German-focused funds.
1. Global X DAX Germany ETF (DAX)
Focus: The ETF aims to track the performance of the DAX 40 Index, which represents Germany’s 40 largest companies listed on the FWB Frankfurt Stock Exchange.
Performance:
| Year | Performance |
|---|---|
| 2024 | +10.54% |
| 2023 | +23.65% |
| 2022 | -18.45% |
| 2021 | +7.72% |
| 2020 | +12.26% |
Overview: The Global X DAX Germany ETF provides exposure to some of the largest blue-chip stocks in Germany, including SAP, Siemens, Deutsche Boerse and Deutsche Telekom. The fund was launched in 2014, and as of February 28, 2025, it holds 41 stocks. Financials make up the majority of stocks in the index, with industrials in second and information technology names in third. The fund’s current assets under management are $84.36 million.
The fund itself states: “Companies in the DAX Index rely heavily on export markets and could see potential near-term tailwinds from a resilient U.S. economy and euro weakness.”
2. The New Germany Fund (GF)
Focus: Invests in mid-cap German companies.
Performance:
| Year | Performance |
|---|---|
| 2024 | -10.98% |
| 2023 | +15.82% |
| 2022 | -39.13% |
| 2021 | +8.99% |
| 2020 | +37.84% |
Overview: The New Germany Fund is a diversified, closed-end management investment company. A closed-end fund, unlike open-end funds, is not continuously offered. The firm explains that “there is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange.”
The fund currently has $152 million in total net assets and holds stocks primarily in the industrials sector (34%). Consumer discretionary, communication services, and information technology are other sectors heavily represented by the fund’s investments. Furthermore, while the fund is mainly focused on Germany, with 96% geographical distribution, it also holds some Dutch (3%) and Luxembourg exposure (1%).
The fund has performed well in the first quarter of 2025, with German stocks benefitting from an overhaul to Germany’s fiscal spending plans.
3. iShares MSCI Germany ETF (EWG)
Focus: Large and mid-sized German stocks.
Performance:
| Year | Performance |
|---|---|
| 2024 | +10.32% |
| 2023 | +22.9% |
| 2022 | -22.17% |
| 2021 | +4.85% |
| 2020 | +11.34% |
Overview: The iShares MSCI Germany ETF tracks the investment results of an index composed of large and mid-sized German equities. Germany is the largest economy in Europe, known for its robust industrial base, particularly in automotive manufacturing, engineering, and pharmaceuticals.
The ETF holds 56 stocks, including major names such as Adidas, Mercedes-Benz, Deutsche Telekom, Siemens, Allianz, and SAP. The top 10 names in the ETF make up 60.5% of the total weighting. The primary sectors represented in the fund are Industrials, Information Technology, Financials, and Consumer Discretionary.
Investors favour this ETF for its access to Germany’s export-driven economy and its resilience within the European Union. While challenges such as energy costs and global demand fluctuations may impact performance, the ETF may be a solid choice for long-term exposure to Europe’s largest economy.
4. iShares Europe ETF (IEV)
Focus: While the ETF is not primarily focused on Germany, it provides significant exposure to many German stocks, which represent 14.8% of the fund.
Performance:
| Year | Performance |
|---|---|
| 2024 | +1.71% |
| 2023 | +19.82% |
| 2022 | -14.16% |
| 2021 | +16.34% |
| 2020 | +5.00% |
Overview: The iShares Europe ETF aims to track the performance of its benchmark index, the S&P Europe 350. The ETF currently has $1.48 billion in net assets and holds 363 stocks, with exposure to many Germany-listed names, including SAP, Siemens AG, Allianz, Deutsche Telekom, and more.
However, the ETF may be more attractive to investors given that it provides exposure to leading companies from across the continent. As a result, it is a strong option for investors seeking a broader European portfolio while maintaining exposure to Germany’s economic strength.
Overall, UK-listed stocks make up 23.39% of the fund, followed by France at 17.02%, Switzerland at 15%, and Germany at 14.80%. The largest sectors represented are financials at 22.98%, industrials at 17.90% and healthcare at 14.25%.
5. Franklin FTSE Germany ETF (FLGR)
Focus: Large and mid-cap German stocks.
Performance:
| Year | Performance |
|---|---|
| 2024 | +10.64% |
| 2023 | +24.22% |
| 2022 | -21.98% |
| 2021 | +5.42% |
| 2020 | +12.17% |
Overview: The Franklin FTSE Germany ETF offers low-cost exposure to German equities. It aims to provide investment results that closely track, before fees and expenses, the performance of the FTSE Germany Capped Index. It was launched in 2017 and currently has $27.91 million in assets. It currently holds 68 stocks, with industrials, financials, and information technology making up the leading sectors represented. The fund is listed on the NYSE Arca and, like many of the other funds on the page, it has performed well so far in 2025, benefitting from the change in the macroeconomic landscape.
As a result, many investors see it as a solid choice given its mix of blue-chip and mid-sized growth stocks.
6. First Trust Germany AlphaDEX Fund (FGM)
Focus: The fund uses a proprietary selection process to invest in German stocks with strong fundamentals.
Performance:
| Year | Performance |
|---|---|
| 2024 | +1.36% |
| 2023 | +12.88% |
| 2022 | -30.39% |
| 2021 | +5.74% |
| 2020 | +17.90% |
Overview: The First Trust Germany AlphaDEX Fund does not focus on stocks based on market capitalisation. Instead, it aims to track the investment results of the Nasdaq AlphaDEX Germany Index, which uses the AlphaDEX stock selection methodology to select stocks from the Nasdaq Germany. The stocks are ranked on growth and value factors. The fund, which is listed on the Nasdaq, was launched in 2014 and is rebalanced semi-annually. It currently holds 40 stocks. The largest sectors represented in the fund are industrials (33.81%), consumer discretionary (18.67%), financials (16.94%), and materials (10.16%). The top 10 stocks are: Siemens Energy, Hochtief, Deutsche Bank, Commerzbank, Rheinmetall, SAP, Heidelberg Materials, Continental AG, BMW, and Talanx.
7. Xtrackers DAX UCITS ETF (XDAX)
Focus: A European-listed ETF that tracks the DAX 40 Index.
Performance:
| Year | Performance |
|---|---|
| 2024 | +18.26% |
| 2023 | +19.66% |
| 2022 | -12.84% |
| 2021 | +15.34% |
| 2020 | +3.08% |
Overview: The Xtrackers DAX UCITS ETF is a low-cost way to invest in the German stock market and provides another way for investors to gain exposure to the stocks included in the DAX index. The fund was launched in 2007 and currently has EUR 5.9 billion in total assets. It is weighted by free-float adjusted market capitalisation and, of course, holds 40 stocks. It is reviewed on a quarterly basis.
Due to the fact that it is listed in Europe, it is generally more popular among European investors seeking direct exposure to Germany’s largest and most stable companies.
Who Should Invest in German Funds?
Given that the funds listed above include various stock types and focus on various segments of the German market, they cater to various investor profiles, depending on their investment goals:
Long-Term Investors: Most of the funds hold well-known large-cap German stocks, making them more appealing to those looking for steady growth in developed markets. The recent developments in the German economy may also provide a reason to hold many of the funds for a longer period.
Value Investors: As there are many big-name, well-established stocks in most of the funds, those interested in stable dividend-paying stocks, particularly from blue-chip German firms, will find them a potentially good addition to their portfolios.
Growth Investors: Funds with mid-cap exposure, like The New Germany Fund, offer the potential for higher returns, while the First Trust Germany AlphaDEX Fund’s selection process may identify and provide investors with exposure to stocks set for strong growth.
Diversification Seekers: Investors looking to balance their portfolio with exposure to one of Europe’s strongest economies will find that many of the funds above provide solid options. However, for diversification across the continent, they may want to take a closer look at the iShares Europe ETF.
Passive Investors: Low-cost ETFs like Franklin FTSE Germany and Xtrackers DAX UCITS are excellent options for passive investing strategies.
Investing in German ETFs provides a gateway to Europe’s largest economy, combining stability from multinational giants with growth from innovative mid-sized firms. Whether investors seek dividend income, growth, or diversification, these funds offer a range of opportunities in the German market.
