Upstart stock exchange Chi-X has unveiled a new tranche of US-listed blue-chip companies available through its transferable custody receipts (TraCRs).
The new tranche includes Caterpillar, McDonald’s, Netflix, Starbucks and Visa. They join companies like Apple and Microsoft, which have been some of the exchange’s strongest performers to date.
“The valuation of Microsoft has increased more than 70 per cent since we launched the Microsoft TraCR, which demonstrates the level of performance Australian investors may achieve by using TraCRs to gain access to US markets,” said Chi-X CEO Vic Jokovic.
“Similarly, our Apple TraCR, Facebook TraCR, and Intel TraCR have seen valuations increase by approximately 40 per cent since they started trading on Chi-X.”
TraCRs provide beneficial ownership of the underlying shares of a US-listed company, allowing Australian investors to access US companies while trading and receiving dividends in Australian dollars and during Australian trading hours.
Chi-X now has TraCRs in 20 US stocks and expects to issue approximately 40 more over the next months, according to Mr Jokovic.
“With strong demand from investors and the continued support of the broking and funds management industry, we are continuing to build on our position as an integral marketplace,” Mr Jokovic said.
TraCRs are issued by Deutsche Access Investments Limited and are exclusively traded on the Chi-X Australia exchange through brokers including CommSec, Morgans Financial, and Westpac Online Investing.
“With increasing demand for TraCRs, we are pleased to unveil these additional five series of TraCRs, representing some of the world’s most iconic brands,” said Chris Bagley, Deutsche head of depositary receipts Australia and New Zealand.
“These build on the 15 series of TraCRs currently available, and the expectation that further globally recognisable names will be made available in the coming months.”