Never miss an update

Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c




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
Style: Athletic Sneakers
Color: Metallic Silver US Shoe Size (Men's): 8
Brand: Nike UPC: 887229411783
Never miss an update

Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c - blurrypron.com

    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c
    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c
    Under Armour Curry 2 Basketball Blue Grey Carolina Panthers Size 11.5 NewMen's Adidas PureBoost All Terrain ATR Running Shoes Sz 11 Legend Ink S80789Nike Hypervenom Phinish SG-Pro AC Anti Clog Black White Volt 889255-017 Size 9Nike Air Zoom Gimme Golf Shoes Sz 10.5 100% Authentic Max Orange 849955 800 , Nike Air Force 1 High '07 Pure Platinum/Wolf Grey-White (315121 041)NIKE LUNAR FLYKNIT CHUKKA 554969 671 SIZE 8.5 , Vans Classic Slip On (Rainbow) True White Pride LGBTQ Shoes Men's Size 9.5 , Nike Air Huarache Premium Men's Shoes Black/Black-Sail 704830-014 , Mens Nike Shox Gravity Size 7 (AQ8553 009) No Box , Nike Manoa Leather Work Boots Haystack Weather 454350-700 Mens Size 12 , Adidas Tubular Shadow Men's Shoes Cardboard / Cardboard / White AC7013Nike Zoom Hyperdunk Mens Basketball Sneakers Shoes White 11 , REEBOK CLASSICS DMX RUN 10 AFF SZ 10.5 WHITE SLEEK METALLIC GOLD CN1653Nike Air Huarache Run Ultra Armory Blue Black Size 10 or 11.5 szNIKE ZOOM VAPOR FLYKNIT FEDERER BLACK WHITE OREO MEN'S SIZE 12.5 885725-004 , Adidas Crazy Explosive Mens Size 7 US 2017 Primeknit PK BY4471 Khaki Basketball , Nike air Zoom Vick III 3 White 832698-100 University Blue Metallic Silver whiteJordan Retro 13 Altitude (2010) Size 10.5 , Asics Gel Lyte V x Colette Yukata White Blue Size 13 H71UK-0101 , Nike SB Dunk Low Pro Goofy Boy QS Premium Yellow suede denim 304292-751 size 13 , Under Armour Speedform Slingride TRI Mens Running Shoes 1293465 001 NIBBrooks Caldera Blue Lime Black Men Trail Running Shoes Sneakers 110242 1D , 32 New Adidas Crazy Explosive Primeknit Low 2017 Shoes B75921 Men Size 13.5 , Adidas Pure Boost LTD Men’s size 12 Gray SilverAdidas Originals AF/1.3 PK Primeknit Boots Scar/Purp BZ0611 - BRAND NEW IN BOX , Adidas NMD XR1 Duck Camo Black Grey White Bape BA7231 Sz 12 , New Balance 1540 size 14 D M1540BK1 in NWT NIB ConditionNike KD 8 EXT VIII Mens Lifestyle Casual SNEAKERS Vachetta Tan , New Mens Nike Air Max 270 Shoes Black&White Sport Sneakers Size 10 ,
    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c - blurrypron.com>Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c - blurrypron.com
    CLARKS Women's Gelata Flora Brown Leather Boot 5.5 B M , YEEZY SEASON 4 by Kanye West WOMEN BAT STRETCH CANVAS MID-HEIGHT BOOTS KW3018058 , Converse All Star Platform Black High Studded [Product Customized] ShoesAsics Gel-Tactic Blue Silver Women Indoor Badminton Volleyball Shoe B752N-4093Funtasma Maiden-8828 Heel Boots - Costume,Fancy Dress,Shoes,Black,Gothic,GothPINUP MONROE-08 Sexy Flared Heel Peep Toe Slide Red Plaid Retro Women Shoes Bow , CASADEI Black Shoes Size 11 Classic Pumps High Heels Made Italy Pointy Toe $690Clubwear Womens Platform High Wedge Heels Peep Toes Pumps Sandals Shoes Leather , Franco Sarto Women's Richland 3 BootieTPS Tan Satin Latin Ballroom Salsa Custom-made Dance Shoes D903**Teva Terra-Float 2 Knit Slide - Women's Size 9 - BlackMen's/Women's SUPERLAMB MEN'S MOCCASIN SHEEPSKIN SLIPPERS Customer first Elegant style Suitable for colorUnder Armour UA Speedform Velociti 7 Rhino Gray- Select SZ/Color.New Mens 12 Converse CTAS Mini Stud John Varvatos Shoes 151295C $250 , Nike Kobe AD A.D. Mid Passion Habanero Red Black 922482-600 Men's 8-13 , NIKE AIR JORDAN XIII 13 LOW CHUTNEY BROWN BLACK SZ 10-10.5 [310810 022] , Nike Air Max 90 Ultra 2.0 Flyknit Men SZ 7.5 13 , NIKE MAGISTA OBRA II AG-PRO TOTAL CRIMSON-BLACK SZ 12 [844594-807]Nike React Element 87 Neptune Green Bright Mango Midnight Navy Black AQ1090-005 , Klogs Tiburon Unisex Comfort Slip-resistant Clog Bluebird - 11 WideJohnston & Murphy Italy Men Black Penny Loafer Slip On Leather Shoe Sz 9 EUC , LaCoste Shoes Protect HF SPJ Black/Purple Sneakers Womens Mismatch 5.5/6 , New Balance Women's US 7 D WIDE 990v4 Running Shoe,Grey/Castlerock W990GL4 A9 , Women's UA Finisher MC White 1264196-164 Lacrosse Cleat US Size 10 , Womens Nike LF1 Flyknit Workboot 860558-001 Black/Black Brand New Size 7 , Skechers Sport 12761 Womens Flex Appeal Simplistic Sneaker M- Choose SZ/Color. , Asics Gel-Quantum 360 CM White Green Red Women Running Shoe Sneakers T6G6N-0100 , Baretraps Andee Ankle Boot Chestnut BT22982 New with Box , Opportunity Shoes - Corso Como Women's Randa Fashion Boot, Brown, Size 11.0Steve Madden Women's Torrent Rain Boot - Choose SZ/Color ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c - 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.

    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c - 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
    Nike Dunk Low Authentic Premium SB QS 112 Sz 112 8 8 100% Authentic Retro 504750 017 a71140c
    Athletic Shoes
    >
    ;