Interest rate risk and credit risk include volatile earnings risks. Usually, as interest rates increase, the bond prices decline accordingly. The cost of credit is linked to the possibility for the bond issuer not to fulfill the principal and interest payments.
When comparing inventories or bonds and iShares funds, it should be noted that the management fees associated with the investment of securities, such as iShares securities, are not charged by individual investors or bonds. Shares of iShares ETFs can be purchased and sold during the day through any exchange brokerage account. Shares can not be redeemed separately from the ETF but can be directly redeemed international investment entails risks such as volatility in the foreign exchange, lower liquidity, fewer government controls and the potential for serious instability triggered by unfavorable political, financial or similar shifts. In addition, these risks are higher for investments in developed, emerging or single-country markets.
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1 Comments
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