# Anybody hold SXRZF (uranium one)??



## CB1021 (Mar 28, 2011)

I bought UUU using a USD RBC direct investing account. Some time later, my UUU got turned into SXRZF which is UUU in USD. 

Can somebody explain SXRZF? The volume is tiny, 102,095 avg. Does it track TSE:UUU and add in pure exchange rate? If you look at charts in monthly or annual intervals, SXRZF tracks better. 

Last 1 year gain for UUU is 25%. Last 1 year gain for SXRZF is 35%...


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## humble_pie (Jun 7, 2009)

just curious. Why did you buy UUU in a US account ?

the problem is the hidden fees for sxrzf that you didn't see. There would have been a big spread between bid & ask for sxrzf because it's the US tracker stock for UUU, therefore it is illiquid.

nearly all canadian stocks that are not interlisted have US tracker stocks. These are in the foreign section of the pink sheets. Most of their symbols end in the letter F.

this is not an efficient market. It's principally for US retail investors who are not allowed to have accounts with canadian brokers (& vice versa btw.) Most US online brokers don't offer the toronto stock exchange. Therefore pink sheets tracker stocks are the only way US retail investors can buy canadian non-interlisteds.

tracker stocks mean no inventory is kept by any dealer in the US. A tracker stock order activates a network of dealers - there is always a big gap between bid & ask for these stocks - and all orders are executed, in the end, on toronto.

investors pay high fees for this networking. Typically $75-150 per transaction. Ask for the B/A next time & you'll see how big it is. Those are the dealer fees, aggregated.

surprisingly, there are some remarkably dignified international stocks in the pink sheets foreign section. The old warhorse that always gets trotted out to show how respectable the "F" stocks really are is Nestle of switzerland. Bombardier is the best-known canadian stock that also trades as a tracker stock in pink sheets foreign section (ie bbd.b does not trade on any US organized exchange.)

there's no reason to keep sxrzf in your US account imho, unless you deeply desire the US dollars that will be produced - after another hefty commission - when you come to sell it. You could sell it more easily in CAD on the more liquid toronto market, if you would like to journal the stock over to your CAD account.

i believe FX exchange accounts for the discrepancy you've noted in their prices. Arbs work constantly to pick clean USD/CAD prices of an interlisted, even among the tracker stocks.


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## CB1021 (Mar 28, 2011)

First of all, thank you for the detailed response. I am very interested in market mechanics. 

I will check the spread on this and see how to act on it.

In hindsight, I made a mistake buying it with the US account because I got hit with FX spread, and now you mention it, B/A spread. I executed an order for UUU, and confirmed that I authorize RBC to do the FX exchange that was required. That all worked well, UUU was listed under my portfolio. Hours later, it was automatically converted to SXRZF

To satisfy your curiosity, I bought it with my US account because I don't have a CAD account. 

This is all very interesting though.


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## OptsyEagle (Nov 29, 2009)

Just ask them to transfer it to your Canadian account. There should be no cost for that.


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