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CDR (Canadian Depositary Receipt)

A Canadian-dollar-traded certificate that gives exposure to a US stock, with currency hedging.

Canadian InvestingIntermediate

Definition

CDRs trade on the NEO Exchange in Canadian dollars and hold the underlying US share, with the currency exposure hedged back to Canadian dollars. They are a way to hold US companies without converting currency.

Watch out for

The hedge has a cost, and the structure differs from buying the US share directly. Check the details of each CDR.

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