What are the risks associated with investing in iShares broad USD high yield?

1 answers

• Mar 20, 2022 · 3 years ago
  Investing in iShares broad USD high yield carries certain risks that should be taken into account. As an investor, you should be aware that the value of the fund can fluctuate based on market conditions. This means that you may experience losses if the market goes down. Additionally, high-yield bonds are generally more sensitive to changes in interest rates, which can impact the fund's performance. It's also important to consider the credit quality of the bonds held by the fund, as lower-rated bonds have a higher risk of default. Diversification is another factor to consider, as a lack of diversification can increase the risk of losses. Finally, investors should be aware of the fund's expense ratio and any associated fees. By carefully considering these risks and conducting thorough research, you can make informed investment decisions.
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