New ETF Investing Of ADRs
AdvisorShares has recently released its second actively managed ETF, called the WCM/BNY Mellon Focused Growth ADR ETF, or AADR. The ETF will only invest in ADRs, such as those ADRs listed in the New York Stock Exchange, as well as pinksheet traded ADRs. Twenty five ADRs will make up the fund, with some cash added, too. The strategy of the ETF seems to be to consistently have a few holdings only.
At the moment, Baidu seems to be the largest holding, along with Walmart de Mexico, Li and Fund, Nestle and Teva. One of the main problems with this ETF investing strategy, however, is that the fund is not very diversified at the sector level. Large weightings are given to growth industries such as technology, consumer stocks and healthcare, but there are not holdings in energy or telecommunications.