Never miss an update

Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e




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: Danner
Style: 808554_1751363 Color: Khaki Full Grain Leather/Nylon
Never miss an update

Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e - blurrypron.com

    Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e
    Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e
    Pierre Hardy fashion slip-ons sneakers shoes in silver/pink glitter , NIKE AIR MAX 1 30TH ANNIVERSARY OG RED US 5 7 37.5 WHITE UNIVERSITY 2017 , New Balance 990 V4 Women's Black/Silver 990BK4DJimmy Choo Women's Nelly Studded Cork Wedge Navy/Gold Suede HeelsMerrell Women's Sugarbush Waterproof Boot Sunned Full Grain Leather WaterproofNike Air VaporMax Flyknit 2 Women's Black/White/Dark Grey/Mtlc Silver 42843001Naot Women's Groovy Ankle Boot Olive/Vintage Smoke Suede/Leather ZipperJordan Retro 3 - Women's Bordeaux/Phantom H7859600 , Naot Women's Rongo Vintage Slate/Silver Luster LeatherHOGAN women shoes Black leather Interactive Luxury sneakers HXW00N0J460GOCB999 , Drew Women's Athens Ankle Boot Dark Brown Leather Zipper , BNIB Isabel Marant Etoile Buck Suede Leather Wedge Sneakers Size 36 , Diba True Women's Sunset Sail Riding Boot Black Leather Knee High BootsVince Women's Thalia Slouchy Suede Cutout Flat Sandal Sand Suede Leather SandalsDOLCE & GABBANA Patchwork Leather Fur Brocade High-Top Sneakers Shoes 05871Rick Owens Black Python Geobasket Hi-Top Sneakers , Lucchese Bootmaker Women's M4942 W Toe Cowboy Boot Black Caiman Belly , LANVIN Paris blue high top sneakers - Size 6 US / 36 EU / 37 FR - New in Box , Adidas Ultra Boost W 1.0 Women's Wmns 10 Primeknit Frozen Yellow S77512 Og Solar , HOGAN WOMEN'S SHOES LEATHER TRAINERS SNEAKERS NEW R261 BLACK 5DE , Lucchese Bootmaker Women's M4906 Tan Tassel Cowhide Leather , PHILIPPE MODEL WOMEN'S SHOES LEATHER TRAINERS SNEAKERS NEW BOMBAY BLACK C9DWomen's Rick Owens Black Leather Trainers Sneakers Boots 38 BNWTDan Post Boots Women's Invy DP3582 Black LeatherGIUSEPPE ZANOTTI WOMEN SHOES LOGO RUNNER SNEAKERS TRAINERS MADE IN ITALY RW70122Gentle Souls Women's Hanna Sneaker Navy Leather Comfort Shoes , HOGAN WOMEN'S SHOES LEATHER TRAINERS SNEAKERS NEW R260 WHITE E49WMNS NIKE AIR MAX 97 TRIPLE BLACK GREY US 10.5 9 42.5 921733-001 LIMITED EDKENZO pink leather slip on platform sneakers
    Danner Women's Explorer Khaki 650 6>Danner Women's Explorer Khaki 650 6
    ☼ELEN☼ Bottines noires - FRANCESCO MILANO - Ref: 0411AUTH BURBERRY Quinsley Black Suede Shearling Made in Italy Ankle Booties 38 , Adidas Duramo Elite 2M [AF5733] Running Navy/Blue-White , Adidas Nastase Leather Mens Retro Shoe Sz , Frye 3478563-BLK Womens Veronica Strap Ankle Boot- Choose SZ/Color.Sergio rossi Shoes 059853 Brown 37Nike Air Jordan 1 Retro Low Flyknit I AJ1 Anthracite Black Men Shoes AH4506-010Paul Parkman Men's Captoe Oxfords - Camel / Red (IDCML-BRD) , Men's Patent Leather Dance Dress wingtip Shoes , BCBGeneration Rachel Dress Mule Sandals 727, Oak, 8.5 US / 38.5 EUNEW Womens LEATHER WRAP SLIDE Footwear Shoes , Salvatore Ferragamo Classic "Fiore" Black Patent Pump (Size 5)100% AUTHENTIC HOT PINK FENDI LOAFERS MOCCASINS LOGO BUCKLE GOLD SIZE 38.5 NEWMan's/Woman's Pleaser Pink Label DIVINE-440 Economical and practical Won highly appreciated and widely trusted at home and abroad Rich on-time deliverybadgley mischka carnation ivory wedge size 6.5 womens shoesFly London Green Red Peep Toe Perforated Sandals Size 36REBECCA MINKOFF Silver Stidded Gladiator Sandals Size 9 NWOT , Nike Vandal High Supreme Mens 318330-400 Blue Orbit White Nylon Shoes Size 9Ariat Contender H2O Men's Waterproof Work Boot 10021471 Size 14 , MENS NIKELAB ZOOM FLY SP "BOSTON CITY PACK" WHITE-VOLT GLOW SZ 8.5 [AJ9282-107]adidas AW Bball Soccer Alexander Wang Bold Orange , Bape x Puma Blaze of Glory White Camo 358844-01 Size 10-13 W/Receipt , Dr. Martens Rigal Knit Fashion Boot - Choose SZ/Color , men's shoes INVICTA 11 () sneakers blue suede textile AB863-FBurnetie Women's Fresh Hi High Top 296272 Light Blue Textile SneakersSkechers Sport 12418 Womens Empire Sharp Thinking Fashion SneakerDREW WOMENS PHOEBE White THERAPUETIC ATHLETIC Hook-and-Loop (14790-22) SIZE 10 NNew Balance WL501 WL501NO High Roller Pack Running Shoe Teal CLASSICS SZ 9 MEDGuess Brown Leather Western Ankle Boots Women's Size 10Chic Womens Pointy Toe Mid Wedge Heel Zip Pull On Stripe Ankle Boots Fall Shoes ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Danner Women's Explorer Khaki 650 6

    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.

    Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e - 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
    Danner Women's Explorer Khaki 650 6" Hiking Boot Explorer Boot Khaki Full Grain Leather/Nylon a9f950e
    Athletic Shoes
    >
    ;