Skip to content

Wall Street Rush Into Single-Stock ETFs Takes Risky Foreign Turn

  • Issuers have planned 129 products targeting overseas companies
  • Traders could get easy exposure to shares unbound by US rules
Workers on Wall Street near the New York Stock Exchange.
Workers on Wall Street near the New York Stock Exchange.Photographer: Michael Nagle/Bloomberg

Wall Street watchdogs already concerned about the risks of single-stock ETFs won’t like what’s coming next: funds offering exposure to individual foreign shares unbound by US listing standards.

Issuers have filed plans for at least 129 ETFs targeting non-US companies in the past month, most of which don’t have depository receipts trading on American exchanges. That generally means the underlying firms don’t have to meet the same financial reporting standards as a US-listed business.