Global investment gets easier for Canadians with new CDRs

Five new additional CDRs round up list of 35 on the NEO exchange

Global investment gets easier for Canadians with new CDRs

CIBC has expanded its lineup of Canadian Depositary Receipts with five new listings on the NEO Exchange.

The 30 CDR tickers that were previously accessible for trading on the NEO Exchange include well-known companies like Tesla, Amazon, Apple, VISA, and more.

The five new CDRs that are now trading on the NEO Exchange, along with their ticker symbols, are:

  • AbbVie Canadian Depositary Receipts (CAD Hedged) – ABBV
  • CVS Health Canadian Depositary Receipts (CAD Hedged) – CVS
  • Honeywell Canadian Depositary Receipts (CAD Hedged) - HON
  • Procter & Gamble Canadian Depositary Receipts (CAD Hedged) - PG
  • UPS Canadian Depositary Receipts (CAD Hedged) – UPS

CDRs offer investors affordable access to foreign equities while reducing the currency risk inherent in international investment. They are offered for a fraction of the underlying reference share's price per share and come with an integrated notional currency hedging.

"As we grow our platform, we continue to see strong momentum from investors looking to hedge their USD exposure," said Christian Exshaw, managing director and head, CIBC Global Markets and Direct Financial Services. "We're thrilled with the reception from the investment advisor and DIY investor communities, as CDRs allow access to some of the world's biggest companies while managing currency risk."

Canadian Depositary Receipts (CDRs) were introduced for the first time on the NEO Exchange by CIBC in collaboration with NEO and CIBC Mellon in July last year.

CIBC used CIBC Mellon's worldwide operational skills and expertise in custody asset service to launch CDRs in Canada. The business also chose to list on the NEO Exchange, which is renowned for its ongoing dedication to innovation.

“In less than a year and a half since launch, CDRs have attracted roughly $1.3 billion in AUM, with clear demand from retail investors, portfolio managers, and financial advisors,” said Elliot Scherer, managing director and global head, Wealth Solutions Group at CIBC Capital Markets. “As we look to make global investing easier for our clients with this industry-first innovation, we continue to add to our line up based on strong investor feedback.”

“With some of the best-performing blue-chip stocks on the market across financial services, consumer goods, healthcare and technology, it’s no wonder investors and their advisors are choosing to invest through CDRs,” added Erik Sloane, chief revenue officer of the NEO Exchange. “CDRs are the simplest and most intuitive way for Canadians to access the US public markets. It’s a true Canadian success story and we’re extremely proud to be the listing venue of choice for CIBC.”