ADRs, or American Depositary Receipts, are securities designed to simplify the process of investing in foreign securities. They are generally issued through a partnership with a custodian bank, which operates in the United States and issues the ADR, and a depository bank, which holds shares of the underlying company in trust within its country of origin.
Though these facilitate access to overseas investments, they also come with associated fees and may not be formally affiliated with the underlying company. We carefully consider the risks and benefits of such investments when designing investment strategies.