Never miss an update

Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6




Item specifics

Condition:
New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Shoe Type: Running, Cross Training
Colour: white Brand: adidas
Style: Athletic Sneakers
Never miss an update

Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6 - blurrypron.com

    Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6
    Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6
    Gentleman/Lady Sneaker MSGM Ollie Skate Packaging diversity stable quality Valuable boutique , Shoes Fila Urban 1010438 Disruptor Mesh Low Unisex Man Woman Sneakers Blu Vintag , Adidas Original NewYork Present Daniel Arsham Shoes Running Grey DB1971 SZ 4-11 , Shoes Hoka One Challenger ATR 4 1018294 MBLNB Running Track Race Training , Man's/Woman's Sneakers Y-3 Ryo Special purchase Sufficient supply Current shape , Nike Air Zoom Grade Basketball Running Sneakers 924466-800 Orange Sz 5-11AUTH PRADA SNEAKERS MONTE CARLO SHOES 4E2791 PORPORA NEW 8 42 42,5Brooks Glycerin 14 Mens Neutral Running Shoe (D) (075)Adidas Crazy Explosive 17 Primeknit Boost Men's Basketball Grey BY4470 SZ 4-11 , Mens Puma EvoSpeed Disc Bolt Tricks RARE Usain Bolt - 18932101 - Gold Black T , Shoes Merrell Mid Gore-Tex J32295 Tahoe Bleu Man Trekking Mountain ankle boot , Mens Adidas UltraBOOST All Terrain - S82036 - Grey Black White TrainersREEBOK REEBOK CROSSFIT NANO 8 FLEXWEAVE - BLK - 12 (4060513166804)Adidas Unisex Original NMD R2 Runner White White Black BZ0219 Size 4-11 LimitedAdidas F22 PK Shoes Athletic Sneaker WHITE / BLACK / ORANGE CQ3025 SZ4-9Adidas x Pharrell Williams PW Tennis HU Unisex Running Blue BY2671 Size 4-11New Balance Men's MW1069 Country Hiking ShoeAdidas x Pharrell Williams PW Tennis HU Unisex Running Yellow BY2673 Size 4-11Shoes Nike Lunarsolo AA4079 012 Dark Grey Man Sneakers Mode Free TimeAdidas Original Unisex Ultra Boost ST Running Sneakers White S80617 SZ 4-11 , Gentlemen/Ladies Sneakers Dsquared Whistler Diverse new design King of quantity Recommended today , Adidas PUREBOOST DPR LTD Shoes Running Brown Blue White BB6303 SZ 4-11Mens Nike Air Vapormax - AQ8627001 - Black Khaki VelvetAdidas Originals Tubular Dawn Shoes Triple Black BZ0629 Size 4-11 LimitedAdidas Ultra Boost Sneakers Running Red S80732 Limited Sz 4-11Adidas Ultra Boost Mens Running Shoes Sneakers White BB6177 SZ 4-12 , Adidas Original Superstar 80s Grey Grey Grey BZ0208 SZ 4-11 LimitedAdidas Men's Women's Original EQT Support 93/17 Sneakers Black BY9509 SZ 4-11Adidas Unisex Original NMD R1 Runner White White White BA7245 Size 4-11 Limited ,
    Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6 - blurrypron.com>Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6 - blurrypron.com
    Frye Brown Leather Round Toe Plain Toe Casual Riding Boots Women's 7 B , Yeezy Season 4 Canvas Stretch Ankle Boots Shoes Heels Beige Size 36-40 , Man/Woman DELIGHT-1018LA Neon Pink Customer first excellent Most practical , Gant Womens Amy Hi-Top Trainers, Black Black G00, 4 UKTom Tailor Womens 5892607 Low-Top Sneakers, Blue Navy 00003, 4.5 UK , Womens DANSKO OLIVIA 225990 purple leather / suede floral loafers sz. 38 M NEW! , Drew Women's Rose Comfort Shoes Dusty PewterCATERPILLAR Size 7.5 Womens P308598 Beige Leather Perforated Mona Loafer ShoesPatricia Green Womens Rock Star Espadrille Wedge Slingback Navy Suede Slingbacks , Womens Stilettos High Heel Sandals High Top Open Toe Party dress Mesh Shoes SzSkechers Womens Reggae Sunshine Flip Flop- Select SZ/Color. , Christian LOUBOUTIN BROWN PATENT LEATHER PUMPS HIGH HEELS MARY JANES PUMPS 40.5 , New Balance 574 Neon Medium Women's Shoes Size 5.5Joe's Jeans Women's Tiger Espadrille Sandal - Choose SZ/ColorAdidas Predator 18.3 Fg Cleats Soccer Men Shoes 8.5Nike Free Train Force Flyknit Men's Running Training Shoes Rio Teal 833275 313 , Nike Dunk High DJ AM size 8 US 100% Authentic Premium Limited Edition Rare 2009 , Adidas NMD R1 Boost Tokyo Black Blue White Mesh OG Colorway Size 11NEW ECCO JEREMY TIE OXFORD MEN'S LEATHER SHOES MOONLESS $190+ Sz 9-9.5/43 , Clarks Men's Orson Fast Sneaker,Grey Combination Mesh 9.5 , Mauri Genuine Lizard Skin Sandals Size 8.5 , YUKETEN Brown Wingtip Canoe Moccasin Shoes 9 1/2Converse Chuck Taylor All Star Ox Women US 6 Black Sneakers , Fashion Womens Sports Shoes New Breathable Outdoor Sneakers Athletic Running HotNEW BALANCE WOMENS RUNNING - FOOTWEAR||WOMEN'S FOOTWEAR||WOMEN'S RUNNING ShoeNIKE Womens Air Force 1 '07 Prm 896185-003 BLACK Size 8.5Michael Antonio Women's Carell Ankle Boot, Black, 9 M USDonald J Pliner BOOTS 6 M RED LEATHER BOOTS 6 DP BOOTS PLINER Mid Calf Boots 6Women's FRANCO SARTO CARLANO 228801 brown leather tall riding boots sz. 7.5 M , Ash women's brown leather high heel ankle boots size 8 M 38
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6 - 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 Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6 - 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 Unisex Original BY9292 ClimaCool 02 02/17/17 White White 4-11 Blue BY9292 Size 4-11 fc3f2c6
    Athletic Shoes
    >
    ;