3Mon·

SK Hynix, GDR, or ADR!?

Hi, everyone :)

I have the $HY9H (-4.93%) in my portfolio, but I see that the $SKHY (-3.92%) is performing much better.

Should I sell the GDR and add the ADR to my portfolio instead?

What do you think??

Best, Alois

4 Comments

Olli@Olli68

3Mon

That doesn't make sense. In the long run, they'll run in parallel.

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Alois_Loves_Stocks@Alois_Loves_Stocks

3Mon

@Olli68 I think so too, but take a look at the prices... GDRs are up 10%, ADRs are up 20%. You're basically throwing away a lot of money in the short and medium term, aren't you?

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Olli@Olli68

3Mon

@Alois_Loves_Stocks But that's only temporary following the U.S. listing, because arbitrageurs are currently unable to do their job. That will be resolved within two weeks at the latest.

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Matthias@Aequitas

3Mon

@Olli68 Two weeks? Just like with TSMC?
The way I see it, the U.S. listing is simply trading at a premium. That will certainly narrow due to arbitrage, but TSMC, for example, almost always trades at a premium because the Asian market is restricted to foreign investors. That’s not something that can be easily arbitraged away.
If the difference narrows, it might be worth considering if you think the U.S. market is more stable, but as a European retail investor, I don’t think switching would make much of a difference right now.

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