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Deal Addict
Feb 26, 2012
2140 posts
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MISSISSAUGA
xgbsSS wrote: The best traded ADR is VWAGY.
Could this be bought in a registered account since its OTC?
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May 11, 2014
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Rankin Inlet, NU
Mr_Dogg wrote: Could this be bought in a registered account since its OTC?
You can because the underlying shares are traded on a qualified exhange(s) in Frankfurt and Stuttgart.
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Jul 17, 2008
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xgbsSS wrote: The best traded ADR is VWAGY.
So why are there 2? What's the difference between VLKAF vs VWAGY?

And it seems while VLKAF is 10x the price, it pays dividends?
Sr. Member
May 2, 2019
696 posts
922 upvotes
Vancouver
You'll need to decide if you want preferred stock (VOW3 in Germany) or ordinary shares (VOW in Germany).

I'm holding preferreds in the form of VWAPY, which is so-called "non-sponsored" ADR.
For ordinary shares, the corresponding ADR ticker is VWAGY. 10 units of VWAPY or VWAGY corresponds to 1 corresponding European share.

VWAPY/VWAGY were created a year ago as a replacement for discontinued Volkswagen-sponsored ADRs (VLKPY/VLKAY).

Not sure what VLKAF is, cannot even find it in Interactive Brokers. The last price is similar to 1 unit of VOW converted to USD.
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May 11, 2014
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VLKAF is not an ADR. It is an actual registered share that trades on OTC and is exchangeable for VOW4. If you want to be a registered shareholder, you buy VLKAF. But, look at the volume. It is very difficult to trade this. I would avoid this issue. When the discontinuation occurred from sponsored ADR, people were given the option to go unsponsored ADR (VWAGY) or full share option (VLKAF) . The full share option cost money in transfer and fees, hence most people chose the unsponsored ADR VWAGY route.

For investment purposes, I would recommend VWAGY over VLKAF

In general, best resource for ADR info is www.adr.com
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Member
Mar 17, 2008
269 posts
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Ontario
I bought a small amount of VWAGY in my RRIF. The dividend won't be a big deal, but I wondered how it will be treated with respect to withholding tax.

Presumably German withholding is deducted before the ADR gets the dividend. Then ADR passes dividend on to investors, less a small handling fee. But ADR is US based, so is there yet another withholding for those of you holding in taxable accounts? And in Registered accounts like RRSP/RRIF is it treated like a US stock (no withholding)

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