Never miss an update

Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979




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: Hi-Tech
Color: Black/Grey MPN: N/A
Style: boots Width: Medium (B, US)
Never miss an update

Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979 - blurrypron.com

    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979
    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979
    New Balance Womens VAZEE PACE Black Silver White REVlite Running Shoes! Sz 11 B!New Balance W990NV3 Women's Everyday Running Shoes, Navy , New Nike Womens Metcon 3 Crossfit Trainer Shoes 849807-100 sz 9 White-BlackAdidas Women’s Gazelle II Shoes - Pink & WhiteMizuno Wave Rider 17 Running Training Orange Purple Sneakers Shoes Womens 7.5SAS Tour Diabetic Leather Walking Shoes, Women's - Size 8.5 W, White/Blue , Nike Air Max Thea Womens Black White Oreo 599409 020 Shoes Multi Size RunningNike Metcon 2 Womens Size Cross Training Shoes Summit White 821913 103 , NIKE AIR MAX ZERO ESSENTIAL BLACK ATHLETIC RUNNING SHOES 4.5Y = Size 6 WOMENSNIB WOMENS SIZE 8 NIKE AIR HUARACHE RUN SNEAKERS FUCHSIA 634835 606 , Womens Nike White Metcon 3 Crossfit Training Shoes 849807 Size 8.5 NEW NIB $130NEW BALANCE WPACEPB WOMEN'S BLACK REFLECTING RUNNING SHOES NEW IN BOXNew Nike Women's Classic Cortez Nylon Running Shoes 749864 008 Size 9 , Nike Flyknit Streak 835994 400 Women's Black Blue Green White NIB RunningNew Adidas Nova Cushion Women's Size 7.5 - Black White Blue Sports Shoes S81706 , Under Armour Women's UA SpeedForm Gemini 2 Running Shoes White/Black , Nurse Mates PENNIE Women's White Leather Slip On Nursing Shoes , New Nike Free 5.0 TR Fit 4 PRT Running Shoes Black/White/Pink Glow 629832-003*** , Men's/Women's Zumba shoes size 10 Fine workmanship Make full use of materials Vintage tide shoesDC Women's Heathrow SE Shoe - Navy / White - New , NIKE AIR MAX THEA WOMEN'S SIZE 8.5 RUNNING SHOES SNEAKERS WHITE BLACK 599409 103 , NEW Womens adidas Duramo 6 Size 9 Coral Pink/Lavender Print Running ShoesVibram FiveFingers V - Running Shoes, Women's Size 41, Pink/Red , Dc Women's Heathrow Se Ankle-High Skateboarding ShoeNike Women's Flex 2017 Running Shoes- Barely Volt/White-Wolf Grey 10MConverse Women's Chuck Taylor All Star Lift Ox Silver Black White SneakerDC Rebound High SE Women's Size 9.5 US Gold BMX Skate Shoes SneakersNIKE Women's Free Transform Flyknit Training Shoe Sz 7.5 Cool Grey 833410 006 , Saucony Men's Zealot Iso 2 Running Shoe
    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979 - blurrypron.com>Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979 - blurrypron.com
    CATERPILLAR P309969 CIDER Wmn's (M) Alpine Suede Ankle BootiePaul Green Side Zip Suede Ankle Boot Dark Brown Women Sz 6.5 * , Baffin Women's Ice Field Insulated Boot White 8 M USFRYE LINDSAY SPUR SHORT DARK BROWN SMOOTH FULL GRAIN LEATHER us $338NEWROCK NR M.WST048 S1 Black - New Rock Boots - MensAsics Kayano 23 DIVA BLUE Women's US Size 6.5 , Gentleman/Lady Sandal Dsquared Ziggy High security Used in durability buy onlineNew: BETTYE BY BETTYE MULLER Quote Monk Strap Shoes, 10MApex Julia Double Strap E360 Women's Black Mary Jane 8MCaterpillar Women's Brode Steel Toe Dark Grey Slip-Resistant (Non-Skid) , Men/Women Ellie Women's Juliet-601 White Ankle Straps Fashion pattern Various types and styles Great choiceAerosoles SKIP TOWN Womens Skip Town Flat- Choose SZ/Color. , ED Ellen DeGeneres Womens Langston Fabric Round, Green/Black/Montauk, Size 10.0REBECCA MINKOFF Women's Stacey Black Suede Slip-On Sneakers Sz 7 $130 NIBLiliana SHAYLA-70 Rose Gold Blush Rhinestone Encrusted Pointy Toe Ankle Boot , S.Oliver Court Shoes, Black, Leather Insole, NEW , Womens Open Toe Super High Platform Stilettos Heel Shoes Ankle Straps Pumps @N43 , Gentlemen/Ladies Pleaser DELIGHT-601UVS Selling Online export store comfortableHot Sexy Womens Leather Peep Toe Rivet Roma Sandals Ankle Strap Roma Sandals New , B45-054 FitFlop Womens Banda Roxy Sandals (- Choose SZ/Color.MEN'S VANS AUTHENTIC SKATE SHOES MEN'S SIZE 7.5/ WOMEN'S 9 NEW , ADIDAS EQT SUPPORT ULTRA SZ 8 WHITE BLACK TURBO BA7474 , Puma Men's Ultimate Sf 10 Ankle-High Fashion Sneaker , NIKE Air Jordan 18 2018 Retro Sneaker Shoes US 11 white AA2494 106NIKE AIR JORDAN XXX 30 Q54 QUAI 54 "COSMOS" QS GALAXY BLACK SZ 13 [863586-010] , Nike Lunar Charge Essential Womens size 6.5 , New Nike Air Force 1 Flyknit Low Sz 8 Shoes 820256 004 Black White 39 AF1 97 DPM , Hoka One One Women's Tracer Road Running Shoe DEEP TEAL Running Sneakers US 11David Tate Women's Wish Heeled Sandal Silver Satin Slingbacks , Adidas Performance Women's Crazypower TR W Cross-Trainer Shoe - Choose SZ/Color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979 - 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.

    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979 - 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
    Men/Women Women's Hi-Tech mogochinese-29992 Cornice Hi-Tech Black/Grey Winter Boot Black/Grey Cheap Modern design Superb craftsmanship 2e5f979
    Athletic Shoes
    >
    ;