Investment in American Depository Receipts (ADR)

It is a good practice to own some foreign stocks thus lowering your risk
with diversification and increasing your return. Investors still need to do
their homework well on any country and company in which they wish to
invest. However, ready access to such research is sometimes very hard
to get. Lower dollar in recent months have been favorable for some of
the stocks, but if the dollar starts strengthening itself for an extended
period, investors may find themselves in troubled water.

American Depository Receipts (ADR) have been a popular investment tool
in recent months. The bulk of these listings are from Europe, though
emerging markets are increasing in representation. ADRs from China and
India have been very popular and successful investments.

We can tell you so many names which have consistently produced good
return, but, as we know, we always hesitate several times before investing
in any individual stock. If you think it is too tough to do research and keep
track of these foreign companies, our suggestion is to go with one of the
Exchange-Traded Funds (ETF) that track U.S. ADRs. The Builders funds,
offered by Nasdaq and the Bank of New York, include Builders Emerging
Markets 50 ADR Index (ADRE) , Builders Developed Markets 100 ADR
Index (ADRD) , Builders Europe 100 ADR Index (ADRU) or the Builders
Asia 50 ADR Index (ADRA).