.png)
Many Latinamerican investors are looking for opportunities to take their money out of their countries and invest them elsewhere. The United States stock market is a popular destination for these investors. But is it possible for them to take their money out of their countries by investing in the US stock market? Many of these opportunities will actually be discussed on the INVERSIONISTAS HISPANOS 2022 event that will take place in Orlando and online.
Ways in which Latinamerican investors can take out money from their countries by investing in the US stock market
ADRs - American Depositary Receipts
The answer is yes! There are a few ways Latinamerican investors can take their money out of their countries by investing in the US stock market.
One way is to invest in American depositary receipts (ADRs). ADRs are stocks of foreign companies that trade on U.S. exchanges. They are denominated in U.S. dollars and can be bought and sold just like any other stock.
According to Investopedia: "The term American depositary receipt (ADR) refers to a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—usually one share—of a foreign company's stock. The ADR trades on U.S. stock markets as any domestic shares would.
ADRs offer U.S. investors a way to purchase stock in overseas companies that would not otherwise be available. Foreign firms also benefit, as ADRs enable them to attract American investors and capital without the hassle and expense of listing on U.S. stock exchanges."
Mutual Funds or Exchange-Traded Funds (ETFs)
Another way Latinamerican investors can take their money out of their countries by investing in the US stock market is to invest in mutual funds or exchange-traded funds (ETFs) that invest in foreign stocks. These funds are available to investors through U.S. brokerages.
Investopedia defines ETFs as: "An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.The first ETF was the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index, and which remains an actively traded ETF today."
US-listed companies that do business in Latinamerica
And finally, Latinamerican investors can also invest in U.S.-listed companies that do business in Latin America.
You can look at some of these companies on Nasdaq. Or you can have an expert team like ours look into the ones from your country that could qualify.
Conclusion:
There are a few ways Latinamerican investors can take their money out of their countries by investing in the US stock market.
One way is to invest in American depositary receipts (ADRs). Another way is to invest in mutual funds or exchange-traded funds (ETFs) that invest in foreign stocks. And finally, Latinamerican investors can also invest in U.S.-listed companies that do business in Latin America.
All of these options provide opportunities for Latinamerican investors to diversify their portfolios and potentially earn higher returns on their investment capital.
However, the best way to identify good opportunities and the right process for them based on the current situation and their particular needs and country would be to talk with a finance expert. Got more questions? Contact our team at Lyon Bern.
Also, Many of these opportunities will actually be discussed on the INVERSIONISTAS HISPANOS 2022 event that will take place in Orlando and online.