Since May 2023, Singaporean investors have been able to trade an investment product known as Singapore Depository Receipts (SDRs). These receipts allow investors to gain exposure to companies listed overseas without opening foreign brokerage accounts. Over the past two years, SDRs have gained more attention as Singapore builds a more accessible and internationally diversified investment ecosystem. In this guide, we will explain how they work, the benefits and risks of investing in them, and the key points to keep in mind before buying. What are Singapore Depository Receipts? According to the Singapore Exchange, Singapore Depository Receipts (SDR) represents a beneficial interest in an underlying security listed on an overseas exchange. Each SDR is issued for trading on the Singapore Exchange Securities Trading Limited (SGX-ST) by an intermediary, referred to as an SDR issuer, without a formal agreement with the foreign company. In other words, SDRs are not actual shares. The SDR issuer buys the underlying shares and deposits them with a...