Never miss an update

adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188




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: adidas Originals
Style: Road Running Manufacturer: adidas Originals
Size Type: Regular MPN: CQ2386
US Shoe Size (Men's): Multiple Variations Model: CQ2386
Never miss an update

adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188 - blurrypron.com

    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188
    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188
    Osiris Men's NYC 83 Skateboarding Shoe - Choose SZ/Color , adidas Men's Nemeziz 17.3 FG Soccer Shoe - Choose SZ/Color , adidas Skateboarding 30618712502 Mens Busenitz PureBoost- Choose SZ/Color. , adidas Originals CQ2387 Mens NMD_R1 Stlt PK- Choose SZ/Color. , Saucony Men's Kinvara 8 Running Shoe - Choose SZ/ColorPUMA Men's Titantour Golf Shoe - Choose SZ/ColorPUMA 10396601 Mens Evopower Vigor 4 IT Soccer Shoe- Choose SZ/Color. , adidas Performance CG4616 Mens Aerobounce STRunning Shoe- Choose SZ/Color.adidas Men's Cloudfoam Ultimate Running Shoe - Choose SZ/Color , adidas Originals Men's NMD_r2 Sneaker - Choose SZ/ColorSkechers Performance Men's Go Air 2 Walking Shoe - Choose SZ/ColorUnder Armour 1281998-003-8 Mens SpeedForm Slingride Running Shoes Shoe , adidas Originals Men's WM Superstar Slip on PK - Choose SZ/Color , PUMA 19003903 Mens Carson 2 Knit Sneaker- Choose SZ/Color. , Under Armour Men's Slingflex Rise Sneaker, - Choose SZ/ColorSaucony Men's Freedom ISO Running Shoe - Choose SZ/Color , Reebok AQ9672 Mens Furylite Gw Fashion Sneaker- Choose SZ/Color. , adidas BB6433 Performance Mens Adizero Tempom- Choose SZ/Color. , Etnies Marana Skate Shoe - Choose SZ/Color , NEW KINFOLK MENS ADIDAS ORIGINALS X C.P. COMPANY SAMBA , ASICS Mens fuzeX Rush Running Shoe, - Choose SZ/ColorASICS Men's Gel-Cumulus 18 Running Shoe - Choose SZ/Color , Puma 30427804 PUMA Mens Silicis MidSneaker- Choose SZ/Color.Merrell Men's Bare Access Flex Trail Runner, - Choose SZ/Coloradidas Q4499736 Mens 360 Traxion Boa Golf Shoe- Choose SZ/Color.ASICS Men's JB Elite TR Wrestling Shoe , adidas Golf adipowerboost 2-M Mens Adipower Boost 2 Cleated- Choose SZ/Color.Merrell Men's Moab FST Hiking Shoe - Choose SZ/ColorSaucony Originals Men's Jazz Original Sneaker - Choose SZ/Color ,
    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188 - blurrypron.com>adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188 - blurrypron.com
    SAM EDELMAN Womens 'Chandler' Black Leather Ankle Booties Sz 9 M - 231670New HUNTER black Refined Chelsea rubber ankle BOOTS 7 rain short , DEMONIA DAM225/BHG Womens Punk Gothic Platform Black Buckle Strap Calf Boots , Freebird by Steven Arlo Black Multi Knee High Boots SZ 6 RARE NIB MSRP $400.0Adidas Originals NMD R2 NOMAD MEN'S SNEAKERS TRAINERS Boost Shoes Low Shoes , OFF-WHITE x Air Jordan 1 Retro High OGNIKE WOMENS TANJUN SNEAKER SAND SHOES **ALL SIZES BEST SELLERAdidas NEO Cloudfoam Advantage [DA9524] Women Casual Shoes White/Vapor GreyGentleman/Lady Skechers Women's 11970 Choc Boots Year-end special promotions Order welcome Different goods , KEYS 7204 BLACK shoes ankle boot boots women's ankle boots leather suede wedgeBrian Atwood BAMBOLA SNAKESKIN Peeptoe Heels Shimmer Metallic Size 8 Leathercrocs 202044 Womens Duet Busy Day Multi Flat 7 US/- Choose SZ/Color. , Biondini Heels Shoes Sandals Suede Royal Cobalt Blue Size 8 eu 39 All LeatherSesto Meucci Henda Ornament Patent Pump Black size 7 M , Vans VA327LMFF Men's Atwood Canvas Shoes, Blue, 9 M USMan's/Woman's DVS Men's Enduro Heir-m Online Shopping Quality and quantity guaranteed Modern modeNike Air Force 1 Low Retro - 845053 203 , 2018 Nike Air Jordan 1 Hi Flyknit "Jeter" Sail Met Gold Sz 9 (0333) AH7233-105 , Nike Air Max 95 TT Pull Tab Pack Black Gym Red Sail 3M White Reflect AJ1844-002Air Jordan Retro 6 Wheat Size 9.5 , Jordan 6 Rings Space Jam Mens 322992-016 Black Hyper Royal White Shoes Size 7.5Men's Laredo Gillette Square Toe Cowboy Boots Tan 9D See Listing , Vintage Black Crackle Distressed Fluevog Renew Your Soul Boots M9 W11 , Tods Men's Womens Orange Shoes Loafer Slip On Slipper Leather Made in Italy 40.5 , NEW FRYE Men's Sully Lug Boat Shoe, Redwood - MSRP $248.00!Men FERUCCI Red Velvet Slippers Loafers Flat With Black BowNew Dress Mens Shoes Business Punk British Style Buckle Wedding Oxfords ShoesChaco Men's Zcloud Athletic Sandal Acero Blue 12 M USNew Under Armour Women's Lightning 2 Running Shoes - Size 8.5 - Radio RedWomens VIA SPIGA Burgundy Leather slim Ankle Booties Sz. 10 M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188 - 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.

    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188 - 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
    adidas 29969 Originals Men's NMD Men's_R1 Stlt Choose PK - Choose SZ/Color 3bbc188
    Athletic Shoes
    >
    ;