Never miss an update

NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424




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: New Balance
Color: BLACK/BLUE Width: Medium (B, M)
Style: RUNNING
Never miss an update

NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424 - blurrypron.com

    NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424
    NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424
    Jessica Simpson Fitt Fashion Sneakers 129, Black/White, 6 US , Skechers Women's GOwalk Lite Glam Slip-On Walking Shoe , Women's Skechers Summits Gray-Pink 12980/GYPK with Memory Foam , Skechers Women's Relaxed Fit Bikers Traffic Loafer , Anne Klein Guardless Slip On Fashion Sneakers 712, Red, 8 US , Tommy Hilfiger Frank3 Slip-On Fashion Sneaker 496, White, 9.5 USJessica Simpson Farahh Walking Sneakers 218, Multi, 5.5 US / 35.5 EUWomens Cole Haan Grand Crosscourt II Shoes Blue Velvet Sneakers NWTAnne Klein Zasa Slide Fashion Sneakers 087, White Multi, 8 US , Adidas NEO Women's Baseline W Casual Sneaker,White/Black/White size 5 AW4409Nike Core Motion TR 2 Womens Running Shoes Fitness Gym Trainers Black , Tommy Hilfiger Frank3 Slip On Fashion Sneakers 804, Medium Blue, 10 US , Anne Klein Guardless Slip On Fashion Sneakers 521, Medium Orange, 8.5 US2018 New Women's Under Armour Womens UA Scorpio Running Shoes Leisure Shoes , Women's NIKE COURT BOROUGH LOW Black Basketball Sneakers/Shoes 844905 NEW , Anne Klein Guardless Slip On Fashion Sneakers 992, Medium Orange, 8 USAnne Klein Zasa Slide Fashion Sneakers 512, White Multi, 8 US , New Balance Fresh Foam Zante V2 Sneaker - Women's Size 7.5M, Pink/Orange , Vibram Trek Ascent - Blue - WomensDKNY Flex Round Toe Slip On Sneakers 506, Mesh Black, 8.5 US / 39 EUAdrienne Vittadini Forum Perforated Sneakers 320, Dusty Pink/Light Gold, 10 US , adidas Tubular Shadow Shoes Women's 6.5 greyConverse Womens Size 10 Grey Chuck Taylor All Star Ox Leather Plimsolls New , Anne Klein Guardless Slip On Fashion Sneakers 675, Navy Multi, 8 USnaturalizer Marianne Slip-On Fashion Sneakers 652, Oatmeal, 8.5 W US , NIKE WOMENS ZOOM STRIKE ATHLETIC/RUNNING SHOES [AJ0188 010] , Nike Flex 2017 RN Women's Running Shoes, Size 11, 898476 101 , NIKE WMNS AIR MAX THEA Black/Cool Grey-Silver -599409 015- ATHLETICadidas TERREX CC VOYAGER SLEEK - Black - Womens
    NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424 - blurrypron.com>NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424 - blurrypron.com
    Pour La Victoire Cassie Black Suede Thigh high Stiletto Pointed Toe Fitted Boots , casadei boots size 6 fits 6.5 or 7Softinos Womens Ica388Sof Trainers, Beige Taupe, 9 EU , Royal Elastics Icon 1801 White Red Women Shoes Sneakers Trainers 92081-001Ana Lublin Shoes Women Boots Black 83285 moda1 ORIGINAL , NWT Tory Burch Natasha Ballet Flats - Size 6 - Retail $235 , Womens Open toe Very High Heel Stiletto Open toe Leather Clubwear Shoes Pumps SZ , Donald J Pliner Women's Black Heels 5.5 M , NIB TORY BURCH JOLIE 85mm HIGH WEDGE CLOSED TOE PUMP SHOE BLACK TAN NAVY GRAYADIDAS Women's Adissage Slide Sandals sz 11 Black Silver Pink Massage Recovery , Dolce Vita Casta Studded Slide Sandals 458, Black, 9 US , PUMA CLYDE FROM THE ARCHIVE CREAM OFF WHITE CHERRY MENS SIZE SNEAKERS 365319-0112 New Nike Hyperdunk '08 Basketball Shoes Photo Blue Size 9.5-14 820321 400 , PUMA Men's BMW MS Speed Cat Netfit Blue Sneaker - Choose SZ/Color , NIKE AIR JORDAN ULTRA FLY 2 BLACK BLACK GYM RED WHITE BLAKE GRIFFIN SHOE SNEAKERNike SB Air Force II Low White Blue Void Red Crush Bradley AO0300 100 Size 10.5 , Nike Kevin Durant 8 AUNT PEARL SZ 7Y (819149-603)Nike Zoom Vapor 9.5 Tour (Magnet Grey/Mint) Federer Tennis [631458-043] MenNike Air Jordan 6 VI GMP Golden Moments Pack White Gold - Sz 9US2018 New British Men Slip On Suede Leather Casual Loafers Moccasin-gommino Shoes , Nike Women's Sz 9.5 Tennis NikeCourt Zoom Vapor 9.5 Tour 631475-504 , OluKai Women's Alaula Slipper Dark Java/Trench Blue Moccasin Slippers , NIB Balenciaga Triple S Sneaker Womens Neon Yellow Grey Speed Flat Trainers 37 , women's shoes MBT 7 / 7,5 () sneakers fuchsia textile dynamic BT20-38Women Winter Boots Stretch Fabric Elastic Boots Tube Snow Boot Safety CottonFashion Womens Over Knee Boots Slim Pointed Toe Suede Chunky Heels Sidfe Zip H60 , Jack Rogers Women's Chloe Classic Rain Boot, Dark Brown, Size 6.0Luichiny Women's Fine by Me Ankle Bootie, Navy, 8 M US , PLEASER ADORE-1018 Exotic Dancing Platform Ankle BootPLEASER Adore-1018G Series 7" Heel Sexy Exotic Ankle-High Boot ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424 - 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 thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424 - 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 thefansshop-13124 BALANCE 6.5 W490LN3 WOMEN'S RUNNING BALANCE SHOES SZ 6.5 2961424
    Athletic Shoes
    >
    ;