Never miss an update

Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7




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
Style: Basketball Shoes
Brand: Nike, Jordan brand
Never miss an update

Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7 - blurrypron.com

    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7
    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7
    Adidas Men Predator 18.1 FG Football Shoes Core Black CM7413 UK6.5-10.5 04'Nike Men Air Vapormax Running Shoes Black green AH9046-005 US7-11 04'26~29cm Vans SK8-HI skating high DX checker from japan (4253adidas Nemeziz 17.1 Men's FG Soccer Cleats Football Shoes Black-Solar Red 1801adidas TUBULAR INVADER STRAP CBLACK from japan (5526Gentlemen/Ladies GEL LYTE3 from japan (6038 Quality queen Trendy Complete specificationsThe Last Conspiracy Men's Shoes Sneakers - TLC1721- | Black | Spring Summer 18 , 27.5cm Asics �~ Okayama denim GEL-SIGHT Navy from japan (6162 , Vans �~ marvel SK8-HI from japan (651Nike Air Max 2017 849559-600 Men's Sizes US 11.5 / Brand New in Box!adidas SAMBA ADV 27cm from japan (5695Adidas Pharrell Williams Tennis HU "Pharrell Williams" - CP9767Vans Syndicate Sean Cliver Authe Supreme from japan (2481VANS SK8 HI Reissu from japan (2205 , Vans Rata mock Men's 25 centimeters from japan (1595 , Men/Women Air Jordan 11 Win Like 96 The color is very eye-catching delicate Modern mode , Safety shoes sneakers asics FFR70S from japan (6090Man/Woman Gelrite 3 ASICS from japan (6283 Modern and elegant fashion Make full use of materials Breathable shoes , Nike Air Max Plus TN SE Men's Trainers "Sail/White/Chamois/Racer " Limited Crep , 27.5cm NIKE AIR FORCE Air Force 07 F from japan (4920Men's/Women's AIR JORDAN 4 TEAL Many varieties The latest technology British temperament , asics gel-lyte EVO blue US10 / 2 ASICS from japan (6104KEEN Utility Men's Braddock Mid Steel Toe Boot Gargoyle/Forest Night Work BootsNike Air Trainer Victor Cruz from japan (5420 , Sneakers Asics Gelrite V size 27 from japan (6203Gentleman/Lady Jordan 11 Unc feature Cheaper than the price Good quality , Men/Women asics shoes from japan (6289 New Listing Stylish and charming International big nameMan/Woman NIKE KD9 27.5cm from japan (5019 wholesale a variety of Complete specifications , Nike Air Jordan 2010 TEAM OUTDOOR 6/29/10 BLACK/WHITE 415093 011
    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7 - blurrypron.com>Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7 - blurrypron.com
    RARE MM6 Margiela Black Leather Crepe Sole Ankle Boots - 37 - La Garconne $600+ , Reebok Furylite Refine [BS6044] Men Casual Shoes Hunter Green/White , shoes super cool high cut shoes size 9 unisex , King Gee K25250 Tradie Elastic Pull-up Steel Toecap Work Boots Black(ALL SIZE)Cat Caterpillar Supersede P719137 men's navy nubuck trekking shoes ankle boots , 18cm BEGINNER Ballet Wedge Hoof Sole Heelless Fetish Pointe Baby Pink Boots , Man/Woman ECCO Women's Bluma Mary Jane Flat elegant Ranked first in its class Excellent stretchingFerragamo New Womens Green Leather Ballet Flats Size 7.5 Run Narrow , Gentleman/Lady Eileen fisher shoes mule 8 We have won praise from our customers. Settlement Price Different styles , 100% Authentic SERGIO ROSSI Black Slingback Pumps 37 $689NEW Bettye Muller 'Gibbs' Black Suede Maryjane Women's Pump , Jimmy Choo Nova Glitter Slingback Pumps (5.5)Cocobelle Womens Leather Antonella Sandal - Brown US 6 NWBClarks Reedly Juno Sandals-Women's size 9 W Sand , Madison Et Cie Brown Braided Leather Sandals Flats SS16 Size 36 6 New $155 25126 , NEW Adidas Mens Crazy 8 ADV PK Primeknit Shoes Black White Sz 8.5 (BY4423)Nike Mens Lebron XIII 13 Basketball Shoe, Size 12.5 D(M) US Dead Stock Red Yeezy , Gentlemen/Ladies Adidas Ultra Boost Parley Wear resistant Elegant and sturdy packaging TRUENike Zoom Rev II TB PROMO AJ7718-605 Pink Breast Cancer Kay Yow RARE Sz 8 NIB , Nike Foamposite One Suns Sz 12 us 46 EuRoad Mate Boot Co Steel Toe Oxfords Vibram Sole Mens Size 8.5 S403-103 , Cole Haan Lenox Hill Cap Ox Shoes - Men's Size 10.5M - Black , Men Business Red Nightclub Slip On zebra stripes Loafers Formal Leather Shoes 59 , US Shoe Size Men Classic Realtree Clog Sport Sandal Athletic Camo Casual Comfort , New Balance Women's Sz. 7 - Gore-Tex® Hiking/Trail Shoes - Waterproof - WO900 , Nike AIR FORCE 1 UPSTEP WARRIOR N7 WMS SIZE 7 Sneakerboot, 873308 103 NEW , Men's/Women's Pleaser Women's Delight 1018MSH Black Patent/Mesh/Clear Beautiful design product quality Very good classificationSneakers Golden Goose Superstar cuir et fourrure vison rose fuchsia T36NIKE W Dualtone Racer Woven AJ8156-002 BARELY GREY Size 7Women Vivobarefoot Primus Lux Leather Light Grey Shoe Sz US 8
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7 - 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.

    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7 - 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
    Man's/Woman's 2013 Nike Man's/Woman's joinmybrand-5461 Jordan XIII Bred Retro Nike Innovative design Various types and styles Current shape 0b6a7b7
    Athletic Shoes
    >
    ;