High demand for U.S. blue-chip stocks leads to more CDRs – but how do they fit in portfolios?

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CDRs allow Canadian investors to buy a fraction of blue-chip U.S.-listed stocks in Canadian dollars without having to worry about the volatility of the foreign exchange rate

A CDR can be purchased more easily because it doesn’t require the client to have U.S. dollars in their account and they can buy a smaller amount.. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know. For more from Globe Advisor, visit our

CRDs were launched on the NEO Exchange in July 2021 and allow Canadian investors to buy a fraction of blue-chip U.S.-listed stocks in Canadian dollars without worrying about the volatility of the foreign exchange rate of converting Canadian dollars into U.S. dollars. “You probably want some of these in a client’s portfolio, maybe as a core position or as a trading position. This is a pretty easy way to do this.”

He adds he would be interested if there were CDRs available for international stocks as well, especially luxury goods retailers such as LVMH Moet Hennessy Louis Vuitton SE.Aman Raina, investment coach and founder of Sage Investors in Toronto, uses CDRs in his own personal portfolio and likes them because he can purchase big U.S. stocks without having to pay a premium. He also likes you can buy a really expensive stock, such as Berkshire Hathaway Inc.Mr.

 

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