| Stock exchanges across the world are competing to attract cross-border exchange-traded fund listings, and depositary receipt structures might yet prove to be an easy, less expensive, way to win business. While American investors can access foreign shares through depositary receipts listed in the US, listing rules mean they can’t buy foreign funds and ETFs in any form, including DRs.
Other countries, however, do allow ETFs to be listed in a depositary format and this could be good news for US-listed products, which generally offer tighter spreads than their European equivalents, due to the fragmented nature of their local trading base. In the months ahead, exchanges and providers will be looking closely at Japan, where ETF Japanese depositary receipts, known as ETF-JDRs, are being used to attract new types of clients and to give traditionally domestically focused investors exposure to foreign opportunities...............................................Full Article: Source |