Never miss an update

Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64




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
Model: adidas
Color: Black Sub Style: running,cross training
Brand: adidas Material: Synthetic
Style: Running Shoes Width: Medium (B, M)
Never miss an update

Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64 - blurrypron.com

    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64
    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64
    Reebok Classic Unisex LINE FRIENDS Classic Leather Green Limited Shoes Sneakersbx32789 Candice Cooper white woman's high-top sneakersWomen's Nike Flyknit Air Max Running Shoes Pink Blue Black Size 10.5 620659 104FILA Court Deluxe Watermelon Limited Edition Shoes + Punchpop + Benefit Tint Setbx32648 Jc Play By Jeffrey Campbell bordeaux woman's sneakers , Gentleman/Lady vt23710 Semicouture woman's pink sneakers Guarantee quality and quantity Optimal price a lot of varieties , Adidas Originals Women's Superstar 80s Shoes Size 7.5 us BB2033 LAST PAIR , Reebok Classic Unisex LINE FRIENDS Revenge Plus Green Limited Shoes Sneakers , Man/Woman bx32729 Diadora green woman's sneakers Packaging diversity excellent Don't worry when shopping , Men's/Women's vt12517 Nike woman's green sneakers Clever and practical Excellent performance fine , Nike Air Force 1 07 LX Women's Lifestyle Shoes Particle BeigeAdidas Originals Women's Tubular Shadow Shoes Size 5 to 10 us BB8869Men's/Women's vt20963 Adidas woman's white sneakers Excellent value Quality First Clearance saleMen's/Women's bx32786 Dr. Martens blue woman's sneakers New varieties are launched Fine art Acknowledgement feedback , Adidas Originals Women's Gazelle Shoes Size 5 to 10 us BA9602Nike Air Max 95 Grape Womens 307960-109 White Grey Purple Emerald Shoes Size 7.5vt19622 Nr Rapisardi woman's black slip onWomen's Kendall + Kylie Jenner Focus Dad Sneaker Lifestyle ShoesAdidas Originals Women's Superstar 80s Shoes Size 8.5 us BB2034 LAST PAIRGentlemen/Ladies vt12408 Nike woman's black sneakers Outstanding features discount price Fashion versatile shoes , Men/Women vt20878 Adidas woman's black sneakers Special price New style General product , Nike Air Huarache City Low JDI Just Do It Sneakers Women's Lifestyle ShoesReebok Classic Unisex LINE FRIENDS Revenge Plus Pink Limited Shoes Sneakers , Adidas Women's UltraBOOST ST Running Shoes 5 to 10 us BY1900 , New fashion shoes woman tenis feminino women shoes casual ladies womens designerAdidas Originals Women's Superstar BW Slip-on Shoes Size 7.5 us BY9139 , Men's/Women's Guess Baskets Gerta Noir FLGER3 LEA12 High security Upper material Clearance saleWMNS AIR FORCE 1 SF AF1 MID SPECIAL FIELD ORANGE QUARTZ SZ 8 [AA3966-800] , bx32639 Jc Play By Jeffrey Campbell black woman's sneakers ,
    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64 - blurrypron.com>Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64 - blurrypron.com
    Adidas NEO Questar TND [DB1116] Men Running Shoes Navy/Navy-Volt , Loriblu Thigh High Overknee Stiletto Boots High Heels Italian Womens ShoesBally Baera Beautuful Ankle Boots Brand New , Puma TSUGI Jun Baroque Fig Shadow Purple Men Running Shoes Sneakers 366593-04 , Selected Femme Womens Sfellie Slider Espadrilles, Beige Sand Sand, 6 UKSilver Gold Fucshia Blue Women's High Heel Evening Pump Holiday Prom Dance Shoe , Silver Rhinestone 4" Wedge Formal Prom Bridal Bridesmaid Sandal Women's ShoesT show Ladies 16cm Sequins Shiny Stilettos Buckle Sexy club Pumps Bridal Shoes , Man/Woman Sam Edelman Women's Stillson Pump Exquisite (middle) workmanship Pleasant appearance International big name$350 B BRIAN ATWOOD SEDINI Silver Snake Leather Designer Wedge Sandals 7 , LL Bean Suede Leather Slip On Hiking Mocs Womens Size 6.5 Medium Brown Shoes , Tabi Slippers Ninjya SOU SOU KYOTO Room Shoes Kiku Japanese Traditional New , Women Hot Real Rabbit Fur Leahter Moccasins Slippers Shoes Square Toe Loafers szADIDAS MEN'S EQT SUPPORT ADV M BRANCH BLK SHADOW GREEN AC7146adidas Golf Mens Crossknit Boost ShoeM- Pick SZ/Color.Nike Shox NZ EU Mens 501524-106 White Black Leather Running Shoes Size 11.5 , Deadstock 2013 Nike Flyknit Trainer Multicolor SAMPLE Size 10 100% Authentic DSNike Air FOAMPOSITE PRO Silver Red Crimson One 624041-016 Penny Galaxy Size 10.5Nike Air Jordan 3 Retro Tinker NRG SZ 10.5 White Red Cement OG (AQ3835-160) NEW , Air Force 1 HIGH '07 VIP NIKE AIR FORCE 1 from japan (5329Wolverine 1000 Mile Burton Leather Boot Black Men Sz 13 D 5978 * , Men's Ted Baker London White Kilma Hi Top Shoes US Size 13 (J4)men's shoes ROY ROGER'S 8.5 () sneakers light blue textile AH500-E , New Balance Women's Ww1105 Ankle-High Leather Running Shoe , L.B. EVANS Logan Beige Slippers New in Box Size 12M Clog Style , NEW Adidas Tubular Viral Womens Shoes Metallic Silver/Core White Size 7 (S75907)AUTHENTIC Puma Muse Metallic Forest Night Metallic Bronze Green Women size 6-10 , 2017 New Women's Zip Synthetic Leather High Heel Mid Calf Boots ShoesVintage 1995 NIKE ACG HIKING BOOTS Women's Size 7.5 Brown Black EUC , Simply Vera Vera Wang Metallic Distressed Bronze Mid Calf Harness Boots sz 7M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64 - 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.

    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64 - 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
    Gentlemen technology/Ladies Adidas Gentlemen/Ladies WOMEN'S RUNNING ULTRABOOST SHOES-BB6149 ULTRABOOST Special purchase The latest technology TRUE 9fd9d64
    Athletic Shoes
    >
    ;