Now that we are seeing ADRs on the platform, I am curious for an explanation of the pros and cons of buying an ADR like LRLCY (L’Oreal) vs the Euronext Paris OR (L’Oreal). Similarly there is RBGLY vs RB for Reckitt Benckiser. The US ADRs do not have a transaction tax when purchasing. That seems a plus. Are they paid without any withholding tax on dividends? Are ADRs like these of any interest or use to European-based investors?
My guess is a no-arbitrage principal will ensure that one version of share ownership cannot outperform the other. but that there may be reasons for certain classes of investor to prefer one rather than the other.