Investment possibilities are no longer limited by location in today’s world. For those interested in foreign investment, this may be the greatest moment to diversify your worldwide investment portfolio.
American Depository Receipts (ADRs)
Individual foreign equities can be purchased by investors who prefer a more hands-on approach utilizing American Depository Receipts (ADRs). ADRs are US-traded instruments that reflect ownership of foreign company shares.
Global Depository Receipts (GDRs)
A global depository receipt (GDR) is a bank document issued in many countries in exchange for shares in a foreign corporation. A depository bank buys foreign firm shares in overseas markets (often Europe) and sells them to investors both inside and outside the United States. GDRs are traded, cleared, and settled in the same manner as domestic stocks.
ETFs & Mutual Funds
The most frequent way to invest globally is by acquiring exchange-traded funds (ETFs) or mutual funds which carry a basket of foreign equities and bonds. ETFs and mutual funds offer investors a quick and diverse international element to their portfolio in a single transaction.