Never miss an update

NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b




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
Brand: REEBOK
Never miss an update

NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b - blurrypron.com

    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b
    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b
    nike womens air max 90 essential trainers 616730 025 sneakers shoes , nike womens air huarache run ultra KJCRD trainers 818061 400 sneakers shoes , Man's/Woman's NEW MM6 MAISON MARGIELA WOMENS SNEAKERS Big clearance sale low cost Export , Mr/Ms NEW MOSCHINO WOMENS LOVE MOSCHINO SNEAKERS Best-selling worldwide discount Selling new products , Puma Basket Heart Denim Womens 363371-02 Halogen Twilight Blue Shoes Size 8 , nike womens flyknit lunar3 trainers 698182 101 sneakers shoes , Nike Womens Huarache Run Ultra BR Trainers 833292 300 Sneakers Shoes , Nike air max thea PRM womens running trainers 616723 sneakers shoes 015 , Puma Basket Heart Denim Womens 363371-03 Oatmeal Twilight Blue Shoes Size 9Puma Suede Classic Glitz Womens 367048-01 Aquifer Blue Pearl Shoes Size 7 , nike womens air max 90 ultra BR trainers 725061 102 sneakers shoesNEW REEBOK WOMENS CROSSFIT NANO 8 FLEXWEAVE , Nike Womens Air Huarache Run Ultra Running Trainers 819151 007 Sneakers ShoesGentleman/Lady NEW PALLADIUM PALLAPHOENIX OG LEATHER SNEAKER Rich design Trendy Quality and consumer first , New Adidas Supernova Glide 8 BB4038 Black Running Shoes For Women All Sizes NIBPuma Suede Hyper Embellished 50th Womens 366124-01 Black Floral Shoes Size 8.5 , Puma Suede Velvet Hyper Emb 50th Womens 366124-02 Glacier Grey Shoes Size 8New Adidas Supernova Glide 8 GFX AQ5058 Black Running Shoes Women All Sizes NIB , NEW COLE HAAN WOMENS STUDIØGRAND KNIT SNEAKER - BLACK-WHITE OCELOTGentleman/Lady ASICS Women's Met-Conviction Cross-Trainer Shoe Crazy price new Reliable reputationMerrell Mimosa Cheer Womens Style J48590 Womens Cinnamon J48590 SneakersGentlemen/Ladies New Balance Women's Sm4040r1 Elegant shape comfortability Extreme speed logistics , Gentlemen/Ladies NEW REEBOK 3D OP. LITE Consumer first Wholesale trade Fashion dynamicDr. Comfort Women's Refresh Blue 9.5 Wide C/D Diabetic Athletic ShoesPuma Basket Heart Denim Womens 363371-02 Halogen Twilight Blue Shoes Size 9.5 , adidas Women's Fastpitch III TPU Softball CleatPuma Suede Heart Reset Womens 363229-01 Aruba Blue Athletic Bow Shoes Size 8.5 , Puma Basket Heart Denim Womens 363371-02 Halogen Twilight Blue Shoes Size 10 , Puma Basket Heart Denim Womens 363371-03 Oatmeal Twilight Blue Shoes Size 8
    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b - blurrypron.com>NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b - blurrypron.com
    BROOKS WOMENS ARIEL 18 GREY PINK SHOES 2018 **FREE POST AUSTRALIA , A35 Biliee Riding Boots, Dark Roast, 11 US DisplayWomen sandals leather model HILA Aus 2 to 10.5 , 42758 auth PRADA dark brown leather STUDDED Ballet Flats Ballerina Shoes 38 , Summer Womens Pumps Slip On Mental Decor Beach Slippers Casual Sandals Shoes szJC Womens Sandals Peep Toe Slingbacks Buckle Platform Block Elegant Pump FashionAM809 WILLY'S shoes black suede women pumpsJCREW Mary Jane Pumps In Colorblock Satin $378 11 f4876 midnight ocean NEWCL by Chinese Laundry Women's Wake up Dress Sandal, Black Burnished, 9 M US , Nike Women's Downshifter 8 Black/Black Running Shoe 6.5 Women UsBirkenstock ~ Classic/Unisex ~ MADRID ~ Clog/Casual/Beach Sandal ~ WHITE , NEW CUSHIONED FLIP-FLOP BROWN SANDAL SLIPPERS SHOES SIZE 40MENS DC SPARTAN HIGH WC TX SE SKATEBOARDING SHOES NIB GREY (GRY)C5 NEW NIKE AIR JORDAN 1 Retro High White/Vachetta Tan Shoes 845018 142 Sz 10 , Converse BO-158959C_BLACK_MASON_SEQUOIA sneaker Men's - colour Black US , Nike Air Max Plus White 852630-101 Size 13Oasis Men's Bradley Leather Blucher Shoes EUC 11 MTHOROGOOD PORTAGE 1892 SERIES HORWEEN CHROMEXCEL LEATHER USA-MADE BOOTS 823-9111Hunter Limited Regent Clarence Black Rubber-Leather Riding Rain Boots US9 EU42 , NEW Cole Haan 10 M Provincetown Bit Brown Pebbled Leather Loafers C26141Cole Haan Men's Gunnison II Slip-on Loafer - Choose SZ/Color , Converse x John Varvatos Mens 7/ Womans 9 CTAS Back Zip distressed grey-blueJeffery West Men's Scarf Polished Shoes, Red , Salomon Men's X-Scream 3D Running Shoe - Choose SZ/Color , Salvatore Ferragamo Back Strap Pumps Sandal Suede Gray Maker Size 5 Reference , Superfeet Women's Ash Ankle Bootie Chipmunk/Turtledove WaterproofZIGI SOHO Women's Brock Over the Knee Boot DARK GREY FAUX SUEDE US 8 NEW , Bar III Carine Black Leather Heel Ankle Booties Womens Shoes , Lucchese 2000 Black Cherry Leather Cowboy Boots Womens Size 9 B Style T3523R4Lucky Brand Latonya Block Heel Ankle Boots 823, Honey, 7.5 US / 37.5 EU
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b - 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.

    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b - 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
    NEW FREESTYLE REEBOK WOMENS mogochinese-29997 X MELODY EHSANI REEBOK FREESTYLE LO 531644b
    Athletic Shoes
    >
    ;