ADRs (American Depositary Receipts)
American Depositary Receipts (ADRs) are issued by US banks.
They represent a specified number of shares in a non-US company whose shares are traded on a US stock exchange. They’re used mainly by American investors who want to receive any dividends or gains in US dollars. They help to reduce administration and duty costs but don’t reduce the inherent investment or currency risks.
Exchange Traded Funds (ETFs) are funds that track individual, or a basket of, assets. They trade on a stock exchange and their price can change throughout the day as they are bought and sold.
ETFs track a range of assets which include:
- Bonds – including long and short, government securities and high-yield
- Commodities – ETFs can invest in physical assets or via futures contracts in agricultural goods, natural resources and precious metals
- Indices – where the fund replicates the performance of a benchmark
- Country ETFs – give investors international exposure to specific countries, regions and currencies.
TRADING IN ADRS
With Spread Co you can place spread bets and trade CFDs in ADRs. You can bet and trade in the shares of companies in over 20 countries, including; China, South Africa, Peru, Russia, France and Germany.