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Summary
- Many investors are interested in putting their money in foreign companies.
- One can do it through various routes - ADRs, GDRs, etc.
- An investor also has the option of ETFs or international mutual funds.
Investors today prefer to build their portfolio by diversifying their risks. There are several opportunities for investing in stocks of other countries these days. Gone are the days when it was unthinkable to invest in stocks of foreign companies sitting in your home country. Today one can choose to invest in the stocks of multiple countries at the same time. There are several options available to the investors including American Depository Receipts (ADRs): American depository receipts (ADRs) are one way to buy stocks in foreign companies. This is a popular way for foreign companies to list on the New York Stock Exchange (NYSE). Global Depository Receipts is another way of investing in stocks of other countries. They are listed on the stock exchanges of most countries. The exchange-traded funds also offer a convenient way to investors to buy foreign shares. Some ETFs can be country-specific and some are focused on the good stocks of several countries.
Do Read: Look at the top 10 ETFs in New Zealand
Against this backdrop, let’s look at the foreign stocks that are popular global stocks.
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NIO Holding Ltd
With new emphasis on electric vehicles (EV), NIO is a Chinese company that focuses on developing and manufacturing EVs. The company was established as recently as 2014 and went for an IPO in 2018. Its trading value is NZ$2.04 billion, and it trades on the NYSE.
Also Read: Which are the hot shares trending on NZX? Which companies are in the NZX 50?
Nokia Corporation
It’s a Finnish technology company and well known all over the world for its mobile phones. It is, however, bigger in scope than that. It is a global provider of network equipment, software, services. It has trading value of US$662.33 and is listed on the NYSE.
Alibaba Group Holdings Limited
Alibaba Group Holdings Ltd. is a China-based company for dealing with e-commerce and offering products through technology platforms. It is listed on the NYSE and has a trading value of around 3 billion.
Also Read: How to trade on the NZX? How to buy Australian shares in New Zealand?
AstraZeneca Plc
This is a British-Swedish biopharma company that has been very popular since the start of the COVID-19 pandemic. The Company develops and sells commercial prescription medicines and vaccines. The Company has made an important contribution during the pandemic by distributing the vaccines developed by Oxford University. It is listed on the NYSE and allows many other countries to invest in the stock. Currently, its trading value is US$502.27 million.
Baidu Inc.
It is a Chinese Company that is number one in search engine and AI businesses. Its trading value is US$935.94 million on the NASDAQ.
Also Read: Are these 10 global technology companies poised to grow in FY21?
ASML Holdings N.V.
This is a Netherlands-based semiconductor manufacturer. It was founded in 1984, but has an international presence in many countries and a range of potential clients. It is listed on the NASDAQ and has a value of US$440.54 million.
However, one must be careful of a few things while investing globally. While investing in emerging markets, one must be careful as they are considered riskier due to uncertain political events. Foreign markets can also be less or more regulated creating a problem for the investor. The prices can be influenced by currency movements.
