Never miss an update

Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8




Never miss an update

Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8 - blurrypron.com

    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8
    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8
    Bloch Women's Criss Cross Dance Shoe Yellow Size 11.5Man's/Woman's MOHI... Shoes 772596 WhitexBrownxMulticolor 37 Queensland real Vintage tide shoes , Columbia Women's ATS Trail Lf92 Sneaker MultiColor Size 10.5 , Sneakers Femme DC SHOES STANCE HIGH Metalic Silver Purple , Columbia Women's Twentythird Ave Waterproof Mid Uniform Dress Brown Size 8.0 Z , Penny Loves Kenny Women's Techno Fashion Sneaker Rose Gold Size 7.5 , Women Casual Shoes 2016 New Fashion Women Shoes Mesh Shoes Woman With BreathablePropet Women's Harper Leather EVA Fashion Sneakers Black Size 9.5Vince Camuto Womens BILLENA Low Top Slip On Fashion Smoke Grey Size 11.0 , All Black Womens Tassel Sneaker Low Top Slip On Fashion Dk Grey Size 5.5Steve Madden Womens Goals Low Top Slip On Fashion Sneakers pewter Size 7.5Reebok Women's Work N Cushion 3.0 Walking Shoe White/Steel_whi Size 10.5 , Steve Madden Womens Ecentrcq Low Top Slip On Fashion Sneakers White Size 11.0 , Palladium T. 38 Neuves Braden Cash White , Easy Spirit Women's Romy Walking Shoe Grey Size 8.0Reebok Women's Cl Lthr X Face Walking Shoe Porcelain/White/Black Size 11.0Man's/Woman's Keds Shoes 347132 WhitexSilver 25cm Quality products delicate Popular tide shoes , New Balance Women's 515v1 Sneaker Black Size 11.0 , Kappa Volante Trainers Womens Blue/Purple Sports Trainers Sneakers , Shoes Skechers Burst Very Daring 12735 NVAQ Womens Navy Aqua Sneakers Slip On , Man's/Woman's MINNETONKA Shoes 884077 Brown 7 We have won praise from our customers. Used in durability Known for its excellent quality , Palladium T. 37 Neuves Braden Cash NoirNew Balance Women's Wzantbx3 Black Size 5.5 , Men's/Women's MERRELL LADIES SIZE 8.5 Great variety Reliable performance Seasonal promotion , Gentleman/Lady VIVA ANGELINA Shoes 222689 GreenxBrown 22.5cm Clearance price low cost Diversified new designPUMA Vikky Platform EP Womens Sneaker Girls Shoes 366455 Olive New , Kenneth Cole New York Womens Kingvel Leather Low Top Black white Size 10.0Shoes Skechers Burst Very Daring 12735 BBK Womens Black Sneakers Slip On MemoryHelly Hansen Women's Aquapace 2 Water Shoe Light Aqua/Aquamarine Size 8.5 ,
    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8 - blurrypron.com>Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8 - blurrypron.com
    Adidas Top Ten high trainer Star Wars Yoda B35565 mens trainers sneakers SAMPLESequins Women's Sexy Bling Over The Knee Boots Peep Toe Stilettos Shoes Side Zip , NEW BALANCE WOMENS FRESH FOAM CRUZ V1 BLACK WHITE SHOES 2018 **BEST SELLER , Gentleman/Lady Ladies Padders Shoes Style Re Flower-W Long-term reputation Settlement Price Diversified new design , Taos Shoes Honor - leather comfort dress heels , Talk Black and White Leather Jon Josef Flat , Dansko Julia Slip On Shoe - Women's size 8.5/9 - Black , Men's/Women's NEW MARC ELLIS WOMENS PUMP Innovative design Wholesale trade business , Butter Women´s Dart Chocolate Suede Low Heel Pumps , Wonderful BALLY Dark Brown Calfskin Pumps w/Tassles & Brass Ends 9NNEW AQUAZZURA Belgravia 75cm Suede Pointed Toe Black Pumps $725 sampleDR. MARTENS WOMAN CLASSIC BUSINESS DERBY SHOES LEATHER CODE 1461 14583003Men/Women Puma Men's R698 Reflective Running Shoe The color is very eye-catching Modern design Cheap orderReebok Shoes Sneaker Size 12 Tan brown preownedNike Men's Metcon Repper DSX Crossfit Training Siren Red 898048-601 8 - 12 , VN03TXQWZ Vans Men SK8-Hi MTE green winter mossAdidas Tubular Shadow Knit Pink Salmon BW1307 BW1309 Mens GS Womens Size 3y-13Nike Air Huarache Dark Grey White Sz 10 318429-037 , WORN 2X Nike Air Lebron XII 12 Low PRM QS Size 10 LeBronold Palmer Everglades , NIKE HYPERDUNK 2016 FK FLYKNIT USA OLYMPIC RED NAVY WHITE 843390 446 sz 12Nike Kyrie 3 University Red Suede Basketball Shoes 852395-601 Size Men's 13 US , Brand New New Balance Men's 997 Color Spectrum Gray White Size 6.5 RunningAdidas Yeezy Powerphase Calabasas Black - CG6420 - US Men’s Size 8Skechers USA Mens Superior-Levoy Oxford- Select SZ/Color.New Balance 1260 V7 Running Shoes, Women's Size 8.5 2A, GreyNIKE - 902167-106 - AIR ZOOM FEARLESS FN SC - Women's Athletic Shoes - Size 11.5VINTAGE REEBOK CROSS ROADS “OG” sz.6.5 DEADSTOCKMan's/Woman's NEW JOIE WOMENS DARENA SNEAKER Attractive and durable comfortability Don't worry when shopping , New Balance Walking / Hiking Boots 1569 Size 6.5 B Gore-Tex WW1569GR , Ariat 10020071 Charlotte Round Toe Western Boots, Women's Size: 9 Medium (C736) ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8 - 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.

    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8 - 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
    Shoes No Woman Think Ally Bronze 9844 Brown Glitter Suede jayhmarketing-9849 Woman Made in Italy Casual Sneake e06e5d8
    Athletic Shoes
    >
    ;