Never miss an update

Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66




Item specifics

Condition:
New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Style: Athletic Sneakers
Brand: Nike Color: Black
Never miss an update

Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66 - blurrypron.com

    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66
    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66
    Nike Air Jordan Future WOOL Premium Cool Grey White 3 III 11 XI 656503-003 Sz 13Jordan Retro 4 Cement Authentic Size 13 , 2015 Nike Lebron XIII 13 Men's Basketball Shoes 807219-500 SZ 9.5NIKE AIR JORDAN 1 RETRO LOW OG neutral grey 705329 100 US 10 EUC bred royal rareNike Kobe 10 Blue lagoon 5am Flights , Nike Air Jordan 1 Retro Hi OG Gatorade Lemon Lime Cyber Yellow AJ5997-345 Sz 11 , Nike Air Jordan 19 Low Size 7Y White/black/cement New Without Box LotNIKE AIR TRAINER CRUZ PREMIUM RUSH BLUE MENS SIZE 10.5 DEADSTOCK2007 Nike Dunk Men Shoe High Purple Quake Newsprint Earthquake 306968 501 9.5***DS MENS NIKE KDVI 6 METEOROLOGY KEVIN DURANT 599424 006 Sz 8 FREE SHIPAdidas Originals Iniki Runner I-5923 Boost Triple Core Black White Stripe CQ2490 , Nike Air Max 90 Premium "King of The Mountain" Sz 10Nike Air Bakin Posite Metallic Pewter Silver Foamposite 618056-002 Size 9Asics GEL-Kayano 24 [T749N-9090] Men Running Shoes Carbon/Black , Nike Air Max 95 'What The Safari' UK Size Exclusive US Size 10 , 05 Nike Air Force 1 306363 167 , 805554-100 Nike Men Nike Free Flyknit Mercurial Shoe White Pure Platinum Red , CONVERSE ALL STAR DRIPPATCH HI Lime Chuck Taylor Japan Exclusive , Nike Mercurial Vapor XI 11 FG Soccer Cleats Laser Orange Black SZ ( 831958-801 )Mr/Ms jordan 3 size 10.5 new High grade The highest quality material At an affordable price , Men Authentic Under Armour Hovr Phantom CT White Heather Running Shoes Size 11.5 , Adidas PureBoost, Men's Size 12 Medium, Black/White, BB6280 NEWNike Zoom Stefan Janoski AC Skateboarding Shoes 705405 221 Cognac Sz US 7.5 RareNew Nike React Hyperdunk 2017 Men Shoe Size 10.5 Cool Grey Anthracite 917726 0072014 Nike Lebron 11 AS Gumbo League Sz 10 (0148) 647780-735Vintage 1999 Nike Air Force 1 White Purple 8 High Af1 , Nike Air Foamposite Foams One Prm Silver Metallic Camo Volt Size 10.5 ShoesRetro 13 Air Jordan “Olive” Mens Size 11 with receipt , NEW NIKE AIR MAX 2016 MEN'S RUNNING SHOES OREO White/Black 806771-101 Size 12.5
    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66 - blurrypron.com>Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66 - blurrypron.com
    PELLICO Shoes 734836 Brown 36 1/2 , Schutz S0172302480004 SCHUTZ Womens Nelina Ankle Boot- Choose SZ/Color. , Asics - Women's GEL-Quantum 360 Knit 2 - Black/White/BlackNike Wmns Air Max 1 Ultra PRM JCRD Premium Metallic Silver Women Shoe 861656-002Versace 19.69 V101 VELOUR TDM PASHA TDM boots Women's Brown AU , New Silent D Ikka Navy Womens Shoes Casual Boots AnkleAU STOCK Pleaser Flamingo-808UV 8" UV Pink Glitter Exotic Dancer Platform HeelsWOMENS SHOES"ORSON"BY VERALI HOT NEW STUNNING HIGH HEEL SANDALS IN NUDE SMOOTH , Nine West Eye Popper Slip-On Loafers, Black White/Red , Chaco Women's Hopi insulated boot Size 7 US Rust (CS18W-10)Man's/Woman's Steve Madden Women's Georgia Ankle Bootie elegant special promotion Selling new productsNIB TORY BUR H LOWELL 2 BALLET FLAT SIZE 7 NATURAL LEOPARD HAIRCALFWomens Gradient Patent Leather High Heel Stiletto Party Pumps Pointy toe Shoes # , CHARLES JOURDAN 31917 PATENT RED LEATHER PUMPS SZ 7Salvatore Ferragamo Clay Beige/Gold Women's Shoes Vara Suede Size 9.5 Sat03 $550Nike Roshe Tiempo VI FC QS Midnight Turq Size 11 Shoe Athletic Running TrainingReebok Classic Harman Run Shoe Men's Running black-CM9204 , ADIDAS Adizero 5 Star 5.0 Mid White Black Silv Molded TD Football Cleats Mens 1111.5 New adidas ALPHABOUNCE 5.8 ZIP SHOES BW1386 Black White Running Shoes , Adidas Originals Men's Campus Vulc II Shoes Size 7 to 11 us CQ1078Nike Air Force 1 AF1 Foamposite Cup Sole LIGHT CARBON BLACK AH6771-002 sz 11 , 2005 Air Jordan XIX 19 East Coast Sz 12.5 307546 161 West Mid Lakers , Mens Males Outdoor Fashion Sneakers Casual Gentle Slip-on Shoes Brown 4548_EC , ALLEN EDMONDS BLACK LEATHER UPPER MADE IN USA SIZE 10.5 , Men's/Women's Newton Women’s Low Profile Running Shoes Promotion Won highly appreciated and widely trusted at home and abroad Explosive good goodsAsics GEL-Cumulus 19 Lite-Show [T8A6N-0193] Women Running Shoes White/Aluba Blue , ADIDAS WOMAN CASUAL FREE TIME SNEAKER SHOES CODE S75897 TUBULAR DEFIANT WGiuseppe Zanotti Maylondon Women's Fashion Sneakers Bianco Tomaia Patent Leather , Women's Totes 8 M Brown Michelle 10" Zip Fur Lined Thermolite Insole Snow Boots , Snow Boots Womens Mid Calf Fur Lining Pull On Hidden Heel Winter Boots Plus Sz
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66 - blurrypron.com

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66 - blurrypron.com

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.

    Conclusion

    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?

     

    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    Nike Air Max 705367 Effort TR Amp Black 29481 Ohio State Amp OSU Buckeyes Week 0 free 705367 061 b175f66
    Athletic Shoes
    >
    ;