For thinvestor who wants the benefits of global diversification but does not want to own foreign securities, the most effective substitutes are

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Quizplus · Accepted Answer

ADRs (American Depository Receipts) function as a substitute for foreign securities, allowing investors to hold shares in non-U.S. companies that trade on U.S. stock exchanges. By investing in ADRs, investors can gain exposure to international markets and achieve global diversification without needing to purchase foreign securities directly. ADRs can also provide additional benefits, such as liquidity, ease of trading, and lower transaction costs compared to investing in foreign securities directly.

For Thinvestor Who Wants the Benefits of Global Diversification but Does