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US SDRs Explained: Investing Beyond Singapore Through SGX | DollarsAndSense Podcast Ep55
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Singapore investors may know SGX for local stocks, but Singapore Depository Receipts (SDRs) offer access to selected overseas-listed companies while still trading in Singapore dollars during SGX market hours.
In this episode of the DollarsAndSense Podcast, Feng Yi and Deanna speak with Bernice, SGX’s product manager for SDRs, and Han Hui, a trading representative from UOB Kehian, to explain how SDRs work and where they may fit in a portfolio.
They explain what investors actually own, how pricing and conversion ratios work, and how liquidity compares with buying overseas directly, including why trading in SGD does not remove foreign exchange risk. The discussion also explores how SDRs can help diversify into sectors less represented in Singapore. A key takeaway is that being familiar with companies like Grab or Sea as a user is very different from evaluating them as investments, which still requires assessing business models, growth, risks and valuation.
Bernice and Han Hui also share when SDRs may be useful, and when investing directly overseas may still be more appropriate.
Watch this episode for a clear breakdown of SDRs, the trade-offs involved, and what investors should consider before adding them to a portfolio.
00:35 Investing beyond Singapore through SGX
03:37 What exactly is an SDR?
04:47 Do SDR investors own the underlying shares?
05:43 Understanding conversion ratios
06:39 How an SDR price is calculated
07:32 Why investors may choose SDRs
08:39 Comparing the total cost of investing
09:57 SDR liquidity versus overseas shares
11:01 How Singapore investors are using SDRs
12:40 Why Singapore-dollar trading still has FX risk
13:23 Bite-sized investing and position sizing
16:09 Diversifying beyond Singapore sectors
17:29 Evaluating SpaceX, Sea and Grab as investments
20:50 How retail investors are using SDRs
22:05 SDRs versus investing directly overseas
23:01 The risks investors should understand
25:43 When might an SDR be worth considering?
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