Never miss an update

Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c




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: Hunter
Pattern: Solid Width: Medium (B, M)
Fastening: Pull On Style: Rainboots
Material: Rubber US Shoe Size (Women's): 5,7,8,9,11
Occasion: Casual
Never miss an update

Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c - blurrypron.com

    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c
    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c
    Women's Black Flower Inlay Red Sequins Leather Cowboy Boots Snip ToeNEW MORGAN BLACK SUEDE LEAHTER SLOUCH HIGH HEEL BOOTS SIZE 8 , sz US 7.5 NEW PAUL GREEN BOOTS "Jada" Brown suede Water Resistant Ankle womens , Womens Denim Blue Classic Western Casual Style Cowboy Boots Plain Leather , Bogs Women's Classic Matte Tall Boot , Circle G by Corral Ladies Brown Cutout Shortie Boot Q5027 , KEEN WEDGE ZIP US 8.5 Woman's Ankle Boot RedWomen's Full Purple Flower Inlay Sequins Leather Cowboy Boots Snip Toe , Laredo Ladies Scout Aztec Square Toe Western Boot 5647Mr/Ms Harley Davidson Chryse Boots Selling new Outstanding style , Women's Brown Flower Inlay Gold Sequins Leather Cowboy Boots Snip Toe , Dolce Vita Zabi Black Nubuck Women's Stacked Heel Ankle Bootie , NW $275 FREEBIRD BY STEVEN TATE STONE ANKLE BUCKLE STRAP BOOTS Size 7 , New Tory Burch Classic Rubber Rain Boots Logo Cuff Black 11NEW 8 / 38 Alberto Fermani Black Leather Zip Up Knee High Boot Anthropologie , Black Leather Cole Haan Knee Length Heeled Boots (size 6) , $350❤️ Marc Jacobs Engineer Boots Motorcycle Buckle Lug Sole 38.5 Brown LeatherFrye Claude Black Womens Shoes Size 8.5 M Boots MSRP $528 , NEW FREE PEOPLE WOMEN'S BLACK JACK OVER THE KNEE HIGH TALL BOOTS US 9Circle G By Corral Women's Embroidered Cowboy Western Boots Black Leather L5136 , Prada Size 37 Black Leather Boots Prada Size 37 Black Leather Boots Prada Sz 37NWT Dansko Burnished Black Marcia Nubuck Leather Ankle Boots (Size 41 / US 10.5)Blondie 3011 Black Sequin Mirrored Platform Open Toe High Heel Thigh Boots 5-11 , NEW FRYE Phillip BROWN BOOTS TALL Riding 6.5 MNIB cole haan womens Boots Size 6.5Cole Haan Darla Over the Knee OTK Boots Black Suede Womens Tall Boots Size 7NEW Halston Heritage Amanda Leather Knee Boot, Dark Brown, Women Size 6 $695COCLICO CADBY BOOTIES 37 7 Taupe Brown Leather Ankle Boots Anthropologie Shoes , Jambu Flex Climber Black/Turquoise Women's Snow Boots WJ14FLX01
    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c - blurrypron.com>Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c - blurrypron.com
    YSL Saint Laurent Charmes Niki Asymmetric Boots Black Leather Ankle Booties 38Roberto Serpentini Gold Jewel Sandal FG05 - New in Box , PLEASER FABULICIOUS AMUSE-20 BLACK MATTE POINTED TOE PUMPS 5" HEELS SZ 5-16 , Nine West Women's XRYE Suede Ballet Flat, - Choose SZ/Color , Attilio Giusti Leombruni 'Circle' Black Leather Wedge Pumps sz: 38.5 | US 8-8.5Aerosoles Women's East Wing Mule Light Tan Nubuck Comfort Shoes , Womens Ethnic Round Toe Rhinestone Loafers Slip On Casual Boats Shoes Leather H9 , Summer Fashion Super High Heels Pointed Toe Thin Heeled Pumps Women Party ShoesPRADA Stunning Ladies Shoes SZ 37 1/2 - US SZ 7 1/2Handmade Cryatal Pearl Bridal Wedding Party Shoe High Heels 6-8cm lusL #bbsabzlxPrada Women's Navy Blue Suede Pointed Toe d'Orsay Pump Loafers Size / US 6$69 NIB, Ralph Lauren NEW Cecilia Blue Linen Wedge Heels Shoes 7.5 Medium (B,M) , Topshop Top Shop Dolly Peach Suede Wedge Platform Sandals 9.5 ShoesAmalfi by Rangoni Womens malta Closed Toe MulesNew COLE HAAN Size 9.5 Red Patent Ankle Strap Back Zip Sandals Shoes 9 1/2Man/Woman Skechers Women's You ZEN Sneaker Ideal gift for all occasions special promotion Superb craftsmanshipWomen's Skechers GO Walk Joy - Black/White - Width: med - Walking , Mens NIKE FREE RN FLYKNIT Black Running Trainers 831069 001Wild West Men's Square Toe Rage Medallion Cowboy Western Boots Diff. Colors , Carolina Men's Wheat Waterproof Insulated Workboot - CA7145 , YEEZY SEASON 3 MILITARY BOOT Onyx Shade, Black Nylon/Dk Brown Suede SIZE US11 , LaCoste Shoes Berber 5 Lo Leather Black Sneakers Mismatch Size 7/7.5 , Steve Madden Size 12 Black Leather Oxfords New Mens ShoesSaucony Zealot ISO 3 Running Shoes Women's Sz US 10 M (B) Silver S10369-1NEW HI-TEC Logan Mid WP WATERPROOF HIKING BOOTS shoes WOMENS size 8.5 NIB , ASICS 2016 GEL-KINSEI 6 Running Shoes-Women's size 11 Multi ColoredWomen's JAMBU FORMOSA Casual Walking MaryJane Shoes Brown / Coral Size 10 , AUTHENTIC NIKE Air Zoom Pegasus 35 Black Oil Grey Gunsmoke White Women sizeWomens High Heels Platform Knee High Boots Patent Leather Prom Party Stilettos , Steve Madden New Pierce Green Womens Shoes Size 11 M Boots MSRP $129
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c - 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.

    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c - 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
    Women's HUNTER Original Boots Pull Tall Matte Black Pull On Original Rain Boots NEW f55377c
    Boots
    >
    ;