![What are the rIsks associated with investing in IYR?](/analysis-quote/_next/image?url=https%3A%2F%2Fstrapi.etfinsider.co%2Fuploads%2FETF_Insider_visibility_c28132bd79.jpg&w=750&q=75)
What are the rIsks associated with investing in IYR?
Investing in IYR, which is an exchange-traded fund (ETF) that tracks the performance of the real estate sector, carries certain risks. Firstly, the fund's performance is dependent on the overall real estate market, which can be volatile and subject to economic fluctuations. Additionally, IYR may be impacted by interest rate changes, as higher rates can lead to increased borrowing costs for real estate companies and potentially affect their profitability. It is important for investors to carefully consider these risks and evaluate their investment objectives before investing in IYR or any other real estate ETF.