Variable earnings risks include interest rate risk and credit risk. Typically, a corresponding decline in the bond values occurs when interest rates rise. Credit risk relates to the probability of the bond issuer not meeting principal and interest payments.
It should be noted when comparing stocks or bonds and iShares Funds that the management fees associated with fund investments, such as iShares Funds, are not borne by investors in individual stocks or bonds. Shares of iShares ETFs may be purchased and sold at the exchange through any brokerage account throughout the day. Shares are not individually redeemable from the ETF but, in very large creation / redeeming units, shares may be redeemed directly from an ETF by Authorized Participants.
International investment entails risks like foreign currency fluctuations, limited liquidity, less government regulation and the potential for major volatility due to adverse political, economic or other developments. These risks are often elevated for investments in emerging / developing markets, or single-country concentrations.
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