Benefits of ADRs

There are benefits to buying American Depositary Receipts -- ADRs -- as a way to play international stock markets. For starters, the underlying companies file with the SEC so you know you will get regular, audited financial statements. Dividends are also paid in dollars, instead of the company's home currency.

Buying ADRs also means that you are participating in an overseas company. That is important when it comes to diversifying your portfolio. Sure, you can buy global and international mutual funds, but this way you can pick the exact company that you believe in. The global markets don't all move in lockstep so there is always the possibility that your ADR is in a country going through a bull market during a bearish correction closer to home. 




ADR listing by country

The ADR upside

The ADR downside

Other Resources

Investing Books


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