The Downside of ADR Investing

Naturally there are pitfalls to buying ADRs. They are pretty much the same risks of buying any foreign stock or fund. A strong dollar may cheapen the value of the underlying shares. Geopolitical risks exist, especially in developing countries with emerging markets.

But perhaps one of the biggest downsides for individual investors is that, buying into a company at the other end of the world, often means that you may be the last to kick the tires, especially if the company doesn't have a stateside presence or reports quarterly results in off-hours. No, it's not that bad, but it can be inconvenient. 




ADR listing by country

The ADR upside

The ADR downside

Other Resources

Investing Books


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