Never miss an update

New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123




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: VivoBarefoot
Style: Hiking, Trail Model: Primus Trail
Euro Size: EUR 42 US Shoe Size (Men's): 9
Width: Medium (D, M) Material: Fabric/TPU
Color: PBT Red UPC: 5052658213030
Never miss an update

New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123 - blurrypron.com

    New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123
    New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123
    Nike sb Stand Up Speak Up Air Zoom rare vintage shoes FC size 10.5NEW BALANCE US574CY CASTLEROCK/LIME MENS MADE IN USA! NEW/BOX MULTIPLE SIZESNike Air Jordan Flight 9.5 Sport Blue/White-Black-Infrared 23 654262-423 SZ 10 , New Mens Nike Lunarepic Low Flyknit Run Running Shoes 843764-005 Size 11 GreyMerrell Capra Bolt GTX Gore Tex Waterproof All Terrain Running Hiking Shoes DarNew w/ Box Adidas NMD R1 Dark Camo Core Black/Grey/Grey Men's Shoes Sz 10 D96616 , Nike Mens PG 1 Paul George Checkmate White Black 878627-100 Size 7 , NIKE AIR RAID OG 1993 CHOCOLATE/BLACK/BLACK "RARE" SIZE 10 US 9 EUR NEW DSNIKE AIR VORTEX NEW STYLE SNEAKERS 903896 016Nike Swoosh HNTR Hunter New White 832820 101 Men's Size 9.5Asics Running Shoes Gel Pulse 8 T6E1N-4907Man/Woman Air Jordan 23 Crazy price, Birmingham New products in 2018 Immediate deliveryNike Air Force 1 High Flax Wheat Style Size 9 , Nike Air Jordan Retro V 5 Low Dunk From Above White Metallic Gold Star Navy , VINTAGE CONVERSE ALL STAR CHUCK TAYLOR BLACK HIGH TOP SIZE 9M MADE IN USA W/BOX! , Nike Tiempo Legend VI 6 SG-Pro ACC Soccer Cleats Volt Black SZ ( 819680-708 )ADIDAS Samba Mint Green Textured Athletic Shoes Size 12 NICE!UNDER ARMOUR CHARGED BANDIT 3 DIGI WOMEN'S RUNNING SHOES, 1303116-941INOV 8 - RACE ULTRA 270 Limon/Blue , Nike Men's Air Max Zero Essential 876070-002 Black | Wolf Grey Size. 13 , NIKE ZOOM VICK III SHOES RED/BLACKWHITE SIZE 9 BRAND NEW (832698-600)26 Men's Nike Air Max Goaterra 2.0 Waterproof Boots 13 14 Cargo/Khaki 916816-300Nike Zoom Lebron III 3 Black Metallic Gold Sneakers Shoes Size 8 (312147-006)NIB AIR JORDAN 1 MID Color:DESERT SAND/WHITE-BLACK Size:10/10.5/11 , Nike Air More Money AS QS Size 11-12 All Star 90/10 Vast Grey White AQ0112-001 , MENS NEW BALANCE NB 997 CLASSIC M997CSIY MADE IN USA CASUAL RUNNING SHOES 7-12 , New Nike Air Force 1 AF1 Low Wolf Gray White Suede 820266-014 Men's Sizes , NIKE AIR MAX 90 ULTRA 2.0 LTR MENS SZ 11 Flax Sail Gum Brown 924447 200 , Nike Lebron Soldier XI 11 SFG "Silver Bullet" Men's size 10 US 897646-007 ,
    New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123 - blurrypron.com>New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123 - blurrypron.com
    Punk Cool Womens Motorcycle boots Cowboy Retro Shoes Leather Mid-Calf Buckle NewEUC RAG & BONE Harrow Nubuck Ankle Bootie - Slate Grey - Sz 37 - $525 , Gentleman/Lady Pink Hunter Gum Boots Size 9 economic The latest technology Modern modeVersace 19.69 B1993 COCCO CAYMAN T. MORO boots Women's Brown AUSperry Top Sider Womens Barrelfish Navy STS96732 Size 5.5 , Badgley Mischka MP3522 Womens Gigi Pointed Toe Flat- Choose SZ/Color.Charlotte Olympia Kiss Me Darcy! Ballet Flat, 34GREAT FEATHERWEIGHT Andre' Assous Dark Brown Suede Heeled Pumps Shoes sz 7 1/2$1299 Dsquared Shoes Beige Real Leather Size US 10 IT 40 Sale 8313CHRISTIAN LOUBOUTIN BLACK SO KATE 120 PATENT LEATHER PUMPS SIZE 38Sanuk Donna Hemp Chill - Women's Slipper Black - 7Nike Paul Rodriguez 9 SB X FB Obsidian Gum Lt Brown Ivory Sz 12 NIB 844813-440Adidas Jeremy Scott Ostrich Slim Brown Q23512 Men'sadidas Originals Men's Superstar Fashion Sneaker - Choose SZ/ColorVintage Motorcycle Boots Made in Italy Men’s Size 9 RallyeJordan Retro 6 & Jordan Retro 7 Golden Moments Men Basketball Shoes DeadstockNike KD 1 OKC HOME Sz 8H by Hudson Men's Plant Boot - Choose SZ/Color , PF FLYERS PM15OL1E CENTER LOW ZIG ZAG Mn's (M) Black Canvas Skate Shoes , ECCO | Chander Dark Brown Leather Oxford Dress Sneakers | Men's 45 / 11 - 11.5 , Nike Women's Dunk Sky High BHM QS Sz 11 NEW 586581 200 Linen Wedge BHM , Merrell Women's All Out Blaze Sieve Water ShoeBrown Sugar/Blue Heaven10 M US , BY9096 Adidas Women Iniki Runner W green tactile green core black footwear white , Nike Wmns Air Max 1 SE Tartan Pack Black Red Yellow Womens Shoes AV8219-001Bar III Womens Camelia Faux Suede Booties Fashion Ankle Boots Shoes BHFO 5741 , Boot Blowfish Pauline Black Saddle Rock PU , Via Spiga Vero Cuoio Womens Tall Tan Suede Boots 16" Pull-On Leather Size 6 M , Gentlemen/Ladies CLARKS Women's Maypearl Alice Ankle Bootie High security Pleasant appearance General productBeverly Feldman Jewels 7.5 / 8 Tan Suede Leather Moccasin PomPom Faux Fur BOOTS , ROBERT CLERGERIE BLACK SUEDE CREPE HEEL SOLE BOOTS 6.5
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123 - 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! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123 - 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! Vivobarefoot Primus Primus Vivobarefoot Trail M Running Shoes. PBT Yellow. Red Yellow. US 9 a6cc123
    Athletic Shoes
    >
    ;