Never miss an update

Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6




Item specifics

Condition:
New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Shoe Type: Sneakers
Material: Suede Nylon Brand: PRADA
MPN: Prada4E2094CromoGrigioNylonNevada2 Colour: Beige Gray
Never miss an update

Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6 - blurrypron.com

    Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6
    Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6
    GEORGE COX joe strummer buckle up leather punk rockabilly CREEPERS , Le Coq Sportif - Deauville Sport - Triple Black , NIKE MAN SNEAKER SHOES CASUAL FREE TIME CODE 918227 400 NIKE DUALTONE RACERHOGAN men shoes H302 Demi Boot brown suede sneaker , NIKE MAN WOMAN UNISEX SNEAKER SHOES CASUAL FREE TIME KB MENTALITY 704942 008Hot Men Pointy Toe Loafer Tassel Formal Business Suede Slip On Velvet Heel ShoesGerald Nappa Calvin Klein Shoes Fashion Black Men NewPUMA MAN SPORTS SNEAKER SHOES CASUAL FREE TIME CODE 189987 IGNITE LIMITLESS KNIT , VOILE BLANCHE men shoes Green military suede black fabric Endavour sneakerMen's Shoes Sneakers GOLDEN GOOSE Superstar Olive Suede White Star Green New , NEW BALANCE X Titolo 247 "Deep Into the blue" (11US) Limited new air ultra maxMen's Shoes Loafers LA MARTINA L3031135 Nabuk Raggri Tortora Made In Italy New , PUMA MAN SNEAKER SHOES CASUAL FREE TIME SUEDE CODE 360101 BLAZE OF GLORY SOFTDelicious Junction Original Badger Black/White Mod ShoesGolden Goose Men's Superstar Low Top Sneakers Silver Black GCOMS590 A8 Deluxe , DEWALT - Radial Dealer Boots Brown Euro 41Pod Heritage White Jagger Retro Mod leather ShoesNIKE MAN SNEAKER SHOES CASUAL FREE TIME NIKE ROSHE RUN SNEAKERBOOT 615601 480 , Skechers Mens SK54154 Go Walk 4 Remarkable Sports Shoes/Trainers (FS4577) , DSQUARED2 MEN'S SHOES LEATHER TRAINERS SNEAKERS NEW 551 WHITE B45MENS WRANGLER WOODLAND LEATHER DESERT CASUAL BOOTS SIZE BROWN WM151091 , Demonia V-Creeper-750 Unisex Black Vegan Leather Studded Platform Shoes - GothicELECTRIC EG3.5 GOGGLES OXBLOOD BROSE RED CHROME LENS SKI SNOWBOARD SNOW 2017DC SHOES SPARTAN HIGH WC TX IF BLACK ACID FW 2018 39 41 45 SHOES NEW SKATE , Men's Sneakers Slip On DSQUARED Intreccio Azzurro Leather Black Blue Made Italy , ALEXANDER MCQUEEN men shoes Blue jacquard sneaker with black trimsMaze_Lowp_knit Hugo Boss Shoes Sneakers Black Men NewCONVERSE CHAUSSURE ALL STAR MONOCHROME UNISEX - Yellow - 38 (888753313581)Emerica Shoes Figgy Dose Black White Gold Skateboard Sneakers
    Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6 - blurrypron.com>Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6 - blurrypron.com
    FRYE Women's Melissa Scrunch Boot Taupe Antique Soft Vintage 6 M USGivenchy NWT "Noir" Black "Marron" Brown Leather Block Heel "Show" Boots SZ 37.5Punk Men Metal Pointy Toe Leather High Top Chukka Rivet Formal Dress Shoes BootsMan's/Woman's Demonia BOXER-01 use comfortability Various latest designs , Adidas Ultra Boost Uncaged Trace Cargo Tan *NEW*Adidas Originals Honey Plimsole Womens M19580 - Onix/White/PinkCole Haan Women's Hayes Flat Ankle BootieLowa Women's Zephyr GTX Mid TF Desert Waterproof , Spring Step women's leather bow Wedges heels size 40 9 shoesLIZ LISA - Low heels ribbon loafers ( Japan kawaii lolita harajuku) , New Womens High Sandals Casaul Heel Stiletto Buckle Shoes Platform Sz Summer Si , Paul Andrew 1008 Taos Taupe Suede Ankle Boots Size 40 , NWT ZARA Black Fringed leather gladiators Sandals with zip US 6 , [email protected]@K! NWT SALE Size 9 Tory Burch Wedge Flip Flop Ivory/ Micro Dot. , new PAPILLIO BIRKENSTOCK Leather Sandals Slide MADRID Metallic-Gold EU37 US6 UK4 , SCHUTZ Women's Luky Dress Sandal - Choose SZ/ColoreS Accel Slim (Black/Gum/White) Men's Skate Shoes , Nike Revolution 4 Trainers Mens Black/Volt Athletic Sneakers Shoes , Nike Air Force 1 High '07 Mens 315121-045 Wolf Grey Deep Royal Shoes Size 8 , NEW ISAIA NAPOLI SHOES 100% LEATHER CROCODILE SIZE 10 US 43 ISCW1Lugz Men's Drifter Lo Work Boot Golden Wheat/Bark/Tan/Gum SyntheticFlorsheim Men's Heritage Wingtip Oxford leather Cognac Shoes 12141-221 , NEW Nike Lunar Lux TR Training Shoes 749183-600 Pink Fuschia White Womens Sz 11M , New Mesh Rhinestone Hidden Wedge Heel Summer Womens Sandal Shoes Sneakers PumpsWOMENS ADIDAS ORIGINALS NMD R2 SZ 5.5 CORE BLACK INDIGO BLUE CLEAR WHITE CQ2008 , ASICS Women's Hyper-Rocketgirl 4 Track & Field Shoe , New Balance Women's Wlazrhe - Choose SZ/Color , BEARPAW Women's Abby Suede Leather Sheepskin Winter Boots Charcoal Size 6.0M , Ann Creek Women's 'Costa' Rhinestone and Stud Texture Boots , Steve Madden BLACK SEQUIN BOOTS 7.5 M Carnby-S Platform SHOES 7 1/2 FABULOUS
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6 - 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's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6 - 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's Sneakers Shoes Cromo PRADA 4E2094 Cromo PRADA Grigio mogochinese-29747 Nylon Nevada2 Suede Beige Grey de32ff6
    Casual Shoes
    >
    ;