Risks associated with variable earnings include interest rate risk and credit risk. A corresponding fall in the bond values typically occurs when interest rates rise. Credit risk is related to the bond issuer's likelihood of not meeting the principal and interest payments.
It should be remembered when comparing stocks or bonds and iShares Funds that investors in individual stocks or bonds do not pay the management fees associated with fund investments, such as iShares Funds. Shares of iShares ETFs may be bought and sold throughout the day through any brokerage account at the exchange. Shares are not individually redeemable from the ETF but may be redeemed directly from an ETF by Authorized Participants in very broad formation / redeeming groups.
International investment entails risks such as foreign currency fluctuations, reduced liquidity, less government regulation and the potential for significant uncertainty due to adverse changes in politics, economies or the like. Also, these risks are elevated for investments in emerging / developing markets, or concentrations in single countries.
infographic by: www.visualcapitalist.com
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