The transaction costs of investing directly in foreign-currency-denominated assets can be reduced by purchasing American Depositary Shares (ADSs).

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American Depositary Shares (ADSs) are a type of security issued by U.S. banks that represent ownership in a foreign company's shares. By purchasing ADSs, investors can indirectly access foreign-currency-denominated assets without having to deal with the complexities and costs of directly investing in foreign markets. ADSs are traded on U.S. exchanges in U.S. dollars, which helps to reduce transaction costs and currency exchange risks for investors.

The Transaction Costs of Investing Directly in Foreign-Currency-Denominated Assets Can