What are the benefits of holding ADRs?
ADRs allow US investors to diversify their portfolio with foreign securities. In addition, ADRs trade, clear and settle in accordance with US market regulations and permit prompt dividend payments and corporate action notification. If an ADR is exchange-listed, investors also benefit from readily available price and trading information.
ADRs eliminate many of the obstacles of holding non-US securities since they trade and settle according to US market practices; are quoted and traded in dollars and pay dividends in dollars; eliminate custodian safekeeping charges in the issuer’s home country; facilitate prompt dividend payments and corporate action notifications.