New U.S. Funds Would Mimic ADRs But Cut Currency Risk

Precidian Funds LLC is planning to offer U.S. investors access to Toyota, Royal Dutch Shell, British American Tobacco and each of 15 other largely blue-chip stocks in a fund structure that could eliminate the risk of a falling foreign currency hurting the stock price.

That said, investors using the products could also miss out on the benefits of a rising foreign currency.

In a filing with the U.S. Securities and Exchange Commission, the Bedminster, New Jersey-based company proposed offering each stock as its own “ADRPLUS” exchange-traded fund.
Source: FA Magazine

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