Never miss an update

New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e




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: New Balance
US Shoe Size (Women's): 12 MPN: W530ASA
Features: Pig suede/leather upper ENCAP® midsole technology Width: B
Style: Low Top Color: Blue with Blue
gender: Female UPC: 190325156466
Never miss an update

New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e - blurrypron.com

    New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e
    New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e
    New Balance 420 SAMPLE WL420CRW Size 7 Atlas Gray Women’s Sneakers1K3Nike Roshe One Flyknit - SIZE 5.5 - NEW - 704927-803 Run Crimson Red White Run , Converse CT All Star OX Women's Girls Casual Retro Fashion Plimsol Trainers Blac , New Balance 880v5 Running Shoes Women’s Size 8.5 B US Excellent Plus ConditionVANS Sk8 Hi MTE Tornado Atlantic Deep Water Resistant Suede Boots WOMEN'S 8 , New Balance Women's 530 Canvas Waxed Shoes Pink with Grey 12 B , Nike Women's Air Max Thea Print Lyl Blue/Lyl Bl/University Red/Wht Running ShoeNike Women's Cortez Classic Leather WHITE METALLIC GOLD 807471-106 sz 9.5 , Nike Air max 1 Essential womens trainers 599820 012 eu 38.5 us 7.5 NEW+BOXNew eileen fisher oodle sandals. size 6.5.Reebok ZPrint Her MTM EPM Grey White Women Running Shoes Sneakers BD4541VANS WOMAN SNEAKER SLIP ON SHOES IRIDESCENT CODE CLASSIC SLIP-ON 18DGZCAsics Women's Size 6.5 GT-2000 4 Running Shoes T656N 9342, Gray Blue GreAsics Women's Gel-Quantum 180 2 Ankle-High Running Shoe , SAUCONY - SAUCONY JAZZ ORIGINAL VINTAGE TRAINERS - vegan 9.5Womens New Real Leather Pearls Flats Bee Sports Sneakers Athletic Running ShoesMizuno 410637 Wave Inspire 11 Running Training Shoes Sneakers Purple Womens , Nike Convention Lowtop spark/orange peel colors clasic 417418 600 , New Balance 580 Tomboy Medium Women's Shoes Size 5.5 , Womens Adidas Originals Stan Smith Weave Pink White Casual Trainers B23487 , Converse x Missoni Women's Chuck Taylor All Star Hi in Egret Size 6-10 BNIB , Kenneth Cole Reaction Kam-Era 2 Fashion Sneaker - Women's Size 8.5M - Gray , NEW Asics Gel Tactic B554N-0190 White/Black/Silver volleyball women shoe Size 147 WOMEN'S NIKE AIR MAX SAIL SWEET PINK RUNNING CASUAL WHITE MULTICOLOR 90 95 97Skechers You Burgundy Womens Casual Slip-on Low-top Sneakers TrainersBNIB GENUINE NIKE AIR RIFT PREMIUM QS TRAINERS SIZE US 8 , nike womens free 5.0 running trainers 642199 603 sneakers shoes CLEARANCE , NEW NIKE FREE BALANZA Running WOMENS 7.5 Slate LTD NIB NR , New Balance Womens Size 7 WX811SS Shoes 811 new sneakers ,
    New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e - blurrypron.com>New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e - blurrypron.com
    Gladiator Womens Suede Leather High Heel Tassels Pointy Toe Ankle Boots Shoes SLaredo 52177 Jasmine Womens Taupe Leather 12" Snip Toe Western Boots , FRYE VERONICA BRONZE BRUSH OFF LEATHER BOOTS 6 $368TOM FORD Anaconda Over the knee Boots SZ 38 = US SZ 7.5 - 8 - NIBNike Mens Air Huarache Run Premium BEIGE BLACK PURPLE SHOES Size 10.5USASICS GEL KAYANO 23 LITE SHOW WOMENS RUNNING SHOES T6A6N.4593 + RETURN TO MELLes Tropziennes par M. Belarbi Billy, Womens Sling Back Sandals, Brown Tan,Made in Italia Shoes Woman Decollete Grey 73900 Cool BDXGentleman/Lady LEATHER MOCCASINS FROM KORS VIGOTTI Good design Settlement Price negotiationBordello Women's Cheetah 06G Red Pearlized Cheetah Patent Ankle StrapsWomens Embroidery Floral Hidden Wedge Heels Slip On Creepers Shoes Pumps LeatherWomen’s 7 1/2 Bacio 61 Green Suede HeelsChristian Dior Slides Heels Shoes Diaced Beige Addict Agneau Mules Sandals 37/7 , Gentleman/Lady Tod's XXW0PH0H160RTU015Y Sandals Women's Taupe US Practical and economical Lush design Excellent functionNIKE ZOOM OMAR SALAZAR DINO JR Sz 9 Purple 386612-500 Stash Pocket RareMen/Women Kyrie 4 Size 8.5 Wear resistant Modern and stylish fashion Non-slip , Nike LeBron 15 XV Low EP Black/Black-Thunder Grey James Basketball AO1756-004NIKE HYPERVENOM PHANTOM 2 FG BLACK-BLACK-VOLT SZ 12 BLACKOUT! 747213-007 Futbol , Philipp Plein men's polo shoes mid-top sneakers logo MSC0094 black leatherMen Floral Printed Fashion Slip On Buckle Leather Clubwear Shoes ZsellEasy Spirit Women's Twist2 Sneaker - Choose SZ/Color , Bruno Magli Siracusa Purple leather Double Monk Strap Loafers Size 12 NIB $450NWT Women's adidas Supernova Athletic Running Shoes Q21473 BlkPurpBurgZARA WOMAN NEW AW18 CONTRASTING SNEAKERS SHOES 5405/301White Mountain Leto Slouch Knee High Boots 429, Coffee, 8.5 US , STEVE MADDEN WOMEN'S SUEDE BOOTIES WITH OPENINGS AND BUCKLES SIZE 7 , Men's/Women's Authentic Dr Martens Shoreditch Canvas main category Strong value various kindsPunk Fashion Womens Buckles Super Platform High Heels Chunky Cut Out Booties New , Ladies Nocona Eel Skin Brown Cowgirl Boots Sz:6 BDurango Gold Sequin Brown Cowgirl Western Leather Boots DRD0057 Women's 7M 7
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e - 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 Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e - 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 Balance Women's Blue 530 Canvas Waxed New Shoes Blue with B Blue 12 B 695354e
    Athletic Shoes
    >
    ;