could someone explain what a adr fund is? thanks?
- Anonymous1 decade agoBest Answer
As one reponder stated, ADRs are American Depository Receipts. These are foreign stocks that are listed to trade in the U S. An ADR fund therefore would be a fund that invests in ADRs. There are also funds that invest in foreign stocks, ADR funds would be a sub category of these. I can give you several examples of both.
ADRD is an index fund that invests is what is called the 100 ADR Developed Markets sort of the 100 large companies from developed markets. Its largest holding is British Petrolium. Annual life to date return is 19%. Not too bad.
ADRE is an index fund that invests in what is called the 50 ADR emerging markets. Its largest holding is Taiwan Semiconductor. Annual life to date return is 32.4%. Not too bad if it can keep it up.
ADRA is an index fund that invest in what is called the Asia 50 ADR index. Its largest holding is Toyota. Annual life to date return is 18.9%.
There are a couple of others of these but these should give you an idea.
Besides the ADR funds, there are funds that invest directly in foreign stocks whether they are ADRs or not.
SWZ is one of these funds. One of its largest holdings is Nestle which is not traded as an ADR.
- 1 decade ago
American Depository Receipt - it's exactly like a real stock from a foreign country except it is issued by a bank. It's used to get into stocks you would normally not have access to or when it's too costly for you to do it yourself. Some ADRs are issued by the actual company they represent, and some are not.
- 1 decade ago
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