ADRs allow Americans to invest in foreign companies. But should you?
Investing in foreign companies brings unique challenges, including finding a broker that allows you to invest internationally and foreign currency volatility. However, there is a way to invest in foreign equities that eliminates those hassles: ADRs. Let’s explore what ADRs are, why they are used, how investors can benefit from them, and address their most famous (or infamous) segments: Chinese ADRs.