Never miss an update

New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf




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
Colour: Black
Shoe Type: Boot Material: Leather
Brand: Wolverine MPN: W81014
Never miss an update

New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf - blurrypron.com

    New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf
    New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf
    Harley-Davidson Mens Stevenson Black Leather D99910 Motorcycle Boot W Zipper , Skechers USA Men's Relment Sandor Chukka Waterproo - Choose SZ/colorMens Clarks Wallabee Boot Black Leather size 9.5 35401Muck Boots Muckster Ll Men'S Rubber Garden ShoesAriat Men's Solder Steel Toe Work Boots, Brown/Chestnut, 10.5 D USMens Leather Retro Chelsea Boot Ankle Boots Round Toe Dress Shoes Pull On Winterara Men's Eugene Ankle Boot, Navy Suede, Size 10.5 , Steve Madden Men's Chapter Loafer - Choose SZ/colorVINTAGE DAN POST BLACK CHERRY TEJU LIZARD WESTERN COWBOY BOOTS 9 1/2 DBrand New Suede Shoes Boots Nike SFB Field 8" Leather 688974 220 , Gentleman/Lady The North Face Snow Boots economic Stylish and fun Great choice , Nike Men's Air Max Goaterra 2.0 ACG Boots size 9 style 916816-601NWB Mens HARLEY-DAVIDSON D95262 Scout Black Leather Harness Motorcycle Boots 11M , Bed Stu Cobbler Series Taurus Chelsea Ankle Distressed Brown Boots Mens Size 13 , Woolrich Beebe Leather Boot Size 10 MSRP: $180Salomon Men's Evasion 2 Aero Hiking Shoe - Choose SZ/Color , Dan Post Brown Snakeskin Boots - 7D , Reebok Men's Stealth 6" Rapid Response RB Coyote Boots W/ Side Zipper - RB8650office creative men boots, brown, distressed vintage style size 10 US motorcycle , Rocky Gore-Tex Waterproof Insulated Badger Work Boot Men's size 8 FREE SHIPPING , MEN'S ARIAT SQUARE TOE BOOTS SZ 10 D ARIAT WESTERN COWBOY BOOTS CROSS TOPS , New Balance 703 Goretex Vibram Hiking Boots Size 12 [MO703HGT] , Danner Men's Springfield 4.5" M's Construction Boot - Choose SZ/ColorNike Air Foamdome Size 8.5 Mens ACG Boots Eggplant Purple Black , Men beautiful cowboy boots Durango size 11 D black brown leather NEWFrye Jack Monk Chukka Waxed Suede Boots, Men's Size 10.5 D, Dark Brown , GRINDERS RENEGADE LO UNISEX LEATHER COWBOY BOOTS , DINGO AMSTERDAM 12" BLACK LEATHER WESTERN COWBOY BOOTS DI15240 * ALL SIZES - NEW , THE NORTH FACE Men's Shoes 002607 BrownxMulticolor 28cm ,
    New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6>New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6
    Bella Vita Women's Toni Ii Harness Boot Black Super Suede 8 N USLa Canadienne Marcie Moka Suede Moka Ankle Boots Sz 8.5 M 4549ASICS Men's Patriot 8 Shoe - Black/White/White - US Men's Size 10LADIES K BY CLARKS BLACK LEATHER WIDE FIT SLIP ON CASUAL LOAFER SHOES GEORGIA , Steve Madden Women's Edina Metallic Leather Bow Detail Flats Sz 8M 4729 , FRYE Women's Melanie Slip-on Fashion Sneaker, Grey Antique Soft Vintage 9.5 M US , MOT-CLe 7231a White Beige Leather Mesh Peep-Toe Cork Wedge Shoes 36.5 / US 6.5 , Naot Purple Patent Leather Suede Mary Jane Clogs Sandals Women's Size 36 M*NEW CC RESORTS AMBER WOMENS COMFORTABLE LEATHER CASUAL FLATS , BLACK & WHITE 4.5" HEEL SANDAL-BUCKLES GO UP THE LEG Women's Sz 6 7 8 9 10 11 12Alexandre Birman Womens Pumps Size 39.5 Brown Suede Ankle Strap High Heel , Dansko Missy Clog Heel - NIB - Free ShippingSteve Madden COVE01S1 Womens Cove Dress Sandal- Choose SZ/Color. , NIKE LUNARLON SUPERBAD PRO TD FOOTBALL CLEATS NEW ENGLAND PATRIOTS sz 10.5New Nike Zoom All Out Low 2 Men Size 10.5 Running Cross Training Green Blue ShoeNike Free Train Versatility Mens Running Trainers Sneakers Sz 11 833258 $100 , AH2216 ADIDAS HARDEN VOL. 2 NIGHT BLUE CYAN RED PRIMEKNIT JAMES HARDEN 8 MENSNew Nike Air Max 95 Essential Shoes Black White Blue 749766-023 Men’s Size 6.5 , Adidas X Sneaksnsstuff Superstar 80s Camera Edition Sz 12 Limited , Nike Air Jordan 1 Shattered Backboard 1.0 OG I Retro Orange Black 555088-005 DS , Asics Tiger GEL LYTE ‡X 27.5cm from japan (6067 , ECCO MEN'S BIARRITZ MODERN BROGUE OXFORD WHITE STITCH LEATHER SHOES EU44 US10Nike Toki Dark Red Leather High Tops Shoes Men's Size US 9.5Nike Women's Size 6.5 Shox Avenue SE Running Shoes Black and Silver 844131-010 , Nine West Creative 8 Dark Brown Leather Peep Toe Wedge Dress Sandal Pump Slip OnPUMA Women's Enzo Metallic WN's Cross-Trainer Shoe - Choose SZ/Color , Adidas Pure Boost X 2.0 Clima Womens BB6089 White Silver Running Shoes Size 8.5 , Kamik Women's Eden Rain Boot Navy 6 M US , Man/Woman Arnaldo Toscani - 7222418 Complete specification Primary quality As of the latest model , Man/Woman Women's Moschino Booties size 38.5 flagship store stable quality Complete specifications ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6

    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 Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf - 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 Wolverine Work Black Wolverine Boots Safety Work Steel Toe Cap Black 6" Tarmac W81014 48a3daf
    Boots
    >
    ;