VelocityShares has launched three emerging market depositary receipt (DR) exchange-traded funds on the Nasdaq Stock Market.
Each ETF seeks investment results that correspond generally to the performance, before fees and expenses, of its index.
“As investors look to further diversify their portfolios there is increased interest in emerging market equities, and American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) enable investors to access emerging market equities with the comfort of developed market securities regulation,” says Nick Cherney, chief investment officer and co-founder of VelocityShares.
Depositary receipts are issued by a bank that purchases shares of a non-US company and issues shares based on the foreign holdings. ADRs are depositary receipts that trade on a US exchange and thus are subject to registration and disclosure requirements under the Securities Acts of 1933 and Securities Exchange Act of 1934, each as amended. GDRs are similar to ADRs, but may be issued in bearer form and are typically offered for sale globally and held by a foreign branch of an international bank.
