CDRs Offer Canadian Investors a Stable Path to Global Equities

Canadian investors have long faced challenges when seeking exposure to global equities. Foreign exchange risk, high share prices for U.S. mega-caps, and administrative complexity of holding foreign securities have been major hurdles.

The solution to these problems is the Canadian Depositary Receipt (CDR), a single, exchange-listed product that blends accessibility, currency stability, and fractional ownership.

A CDR represents a fraction of interest in a foreign company's stock. For example, Apple's CDR trades at $44.61 per share on the TSX, while Apple common shares trade at over $436.76 USD.

The CDR ratio adjusts daily to reflect currency fluctuations, ensuring that investors capture underlying performance without being subjected to currency swings.