Best ADR Stocks: Foreign Companies Trading on US Exchanges

The first American Depositary Receipt was created in 1927 by the predecessor of JPMorgan Chase, allowing shares of British retailer Selfridges to trade in the United States. Nearly a century later, more than 2,000 ADRs represent companies from over 70 countries, all trading in US dollars on the NYSE, NASDAQ, AMEX, or over-the-counter markets.

An ADR is a certificate issued by a US depositary bank — such as BNY Mellon, Citibank, or JPMorgan — that represents one or more shares (or a fraction of a share) in a foreign company. The depositary bank purchases the underlying shares on the foreign exchange and then issues dollar-denominated receipts that trade like ordinary US stocks. Dividends are paid in US dollars after currency conversion.

ADR programs come in several levels:

• Level 1: Traded over-the-counter only, with minimal SEC filing requirements. Companies like Nestlé, Roche, Heineken, and Tencent fall into this category.
• Level 2: Listed on major US exchanges, requiring SEC registration and annual Form 20-F filings that conform to US GAAP.
• Level 3: The highest tier — companies can raise capital by issuing new shares in the US and must meet the strictest reporting standards. Many of the largest companies in the world maintain Level 3 programs.

Among the most widely held ADR stocks are names spanning multiple sectors:

• Semiconductors: Taiwan Semiconductor (TSM) and Netherlands-based ASML Holding (ASML)
• Pharmaceuticals: Novo Nordisk (NVO) from Denmark and UK/Sweden’s AstraZeneca (AZN)
• Energy: Shell plc (SHEL), headquartered in the UK
• Consumer goods & luxury: Nestlé and other European household names

The ratio of foreign shares to one ADR varies widely — from 100,000:1 to 1:100. For example, one Diageo ADR represents four Diageo ordinary shares. ADR holders have the right to obtain the underlying foreign stock, though most US holders find it simpler to keep the receipt.

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The table below lists top ADR stocks traded on US exchanges, focusing on SEC-registered depositary receipts. Prices, market capitalizations, and dividend data update automatically to reflect current market conditions.