Caterpillar Inc. Canadian Depository Receipt (CAD Hedged) (CATR)

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https://www.caterpillar.com

Caterpillar Inc. Canadian Depository Receipt (CAD Hedged) is a Canadian Depositary Receipt (CDR) that provides Canadian investors with exposure to Caterpillar Inc., a leading U.S.-based manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Operating through key segments including Construction Industries, Resource Industries, and Energy & Transportation, Caterpillar serves global markets in the industrials sector, particularly machinery, with a workforce of approximately 109,100 employees headquartered in Irving, Texas. This CDR features a built-in notional currency hedge to Canadian dollars, minimizing USD/CAD exchange rate fluctuations by daily adjusting the CDR ratio, allowing purchases in CAD on Canadian exchanges without direct currency conversion costs. Investors retain proportional dividend rights, paid quarterly in CAD at around 1.0-1.6% yield, and voting eligibility, making it accessible for fractional ownership of high-priced U.S. stocks while trading like regular Canadian equities. The hedging incurs an annual cost of about 0.60%, reflecting its role in facilitating diversified global exposure for Canadian portfolios.