momentum investing
Sector-adjusted momentum on XETRA returned 10.99% annually from 2000 to 2025 vs the DAX''s 5.12%, with +5.87% excess CAGR and 54.55% down capture. Germany''s 9.0 average active sectors make it one of the most reliable markets for the RS signal.
momentum investing
Pure 12-month price momentum on XETRA stocks from 2000 to 2025 delivered 12.51% CAGR with a Sharpe of 0.588, the highest risk-adjusted return in an 18-exchange global study. The strategy outperformed the DAX by 7.45% annually with a max drawdown of -39.69% vs the DAX's own -55.38%.
equity growth
We backtested the Compounding Equity Screen on XETRA stocks from 2000 to 2025. 3.26% CAGR vs 5.04% for the DAX. A -1.78% annual shortfall against the local benchmark, with 57% down capture and a 56% win rate. Germany trails the local index but by far less than it looked vs SPY.
quality investing
We screened XETRA for FCF compounders from 2000-2025. 8.84% CAGR vs 5.04% for the DAX with 20 invested years out of 25. Germany's industrial cash discipline beats the local benchmark by 3.80% annually.
dividend investing
We backtested a high dividend yield screen with quality filters on German stocks (XETRA) from 2000-2025. 7.65% CAGR with +3.20% annual excess vs the DAX, +4.22% Jensen alpha, 0.360 Sharpe.
quality investing
We screened XETRA for FCF conversion quality from 2000-2025. 8.93% CAGR vs 5.04% for the DAX with zero cash periods in 25 years. $10K grew to $85K vs $34K for the index. 60% win rate, 39% down capture.
FCF growth
German FCF growth stocks outperformed the S&P 500 over 25 years — the only European exchange in our 13-market study to do so. 8.33% CAGR vs 7.83% SPY, with 97% up capture and 60% down capture. Modest edge, consistent protection.
revenue acceleration
Revenue acceleration underperforms in Germany by 1.3% annually. But it produced the lowest max drawdown in our 12-exchange study (-29.91%) and captured only 58.5% of market declines.
Germany stocks
We backtested sector-relative EV/EBITDA on 25 years of German stocks (XETRA). 8.97% CAGR vs 4.45% DAX (total return), +4.53% excess. Zero cash periods. Win rate 48% but big alpha years (2000: +48% excess vs DAX) drive the long-run case. DAX is a total-return index — this is a clean comparison.
P/E mean reversion
We tested a sector-relative P/E mean reversion screen on 25 years of XETRA data. Buy when a stock trades at a 40%+ discount to its sector median P/E, filtered for quality. The strategy returned 10.20% annually vs 4.45% for the DAX, with 5.76% excess return, the highest Sharpe ratio of 13...
P/E compression
P/E compression on German stocks underperforms SPY by 3.46% annually. 4.18% CAGR despite zero cash periods and good diversification shows the strategy failed.