Never miss an update

Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709




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: ZANZARA
Color: Black Style: Riding, Equestrian
Pattern: Solid Width: Medium (D, M)
Never miss an update

Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709 - blurrypron.com

    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709
    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709
    Madden Men's M Covert Winter Boot - Choose SZ/Color , Kenneth Cole REACTION Men's Desert Daze Chukka Boot - Choose SZ/Color , Caterpillar Men's Pursuit 2.0 Steel Toe / Black Work Shoe - Choose SZ/Color , Geox Men's Snake Moc 20 Moccasin - Choose SZ/Color , Steve Madden Men's Bryson Chukka Boot - Choose SZ/Color , Altra Men's Desert Boot Everyday Shoe - Choose SZ/ColorVolcom Men's Herrington GTX Boot Winter - Choose SZ/ColorKenneth Cole REACTION Men's Design 20735 Ankle Boot - Choose SZ/ColorMizuno Mens Player's Trainer 2 Baseball - Choose SZ/Color , Helly Hansen Men's Bergshaven Fashion Sneaker - Choose SZ/Color , Cole Haan Men's Air Colton WNTR Chukka Boot - Choose SZ/ColorCaterpillar Men's Streamline Comp Toe Work Shoe - Choose SZ/ColorGentlemen/Ladies DC Men's Torstein - Choose SZ/Color Reputation first Let our goods go to the world Most practical , Kenneth Cole REACTION Men's Guy Chelsea Boot - Choose SZ/ColorUS Shoe Size Men Leather Suede Ankle Chelsea Boot Casual Dress Black Brown CamelRocky Men's RKS0315 Hiking Boot - Choose SZ/Color , Under Armour Men's Horizon STR 1.5 Hiking Shoe - Choose SZ/Color , Reebok Work Men's Trainex RB6765 Sport Boot - Choose SZ/Color , Skechers USA Mens Duson Steno Chukka Boot- Select SZ/Color.Caterpillar Men's Pursuit 2.0 Steel Toe / M Charcoal Work Shoe , Steve Madden Men's Pieter Boot - Choose SZ/Color , Nunn Bush Men's Savage Plain to Chukka Boot - Choose SZ/ColorSteve Madden Men's Backfire Chukka Boot - Choose SZ/Color , Danner Men's Lookout Station Office Boot 5.5" Military & TacticalVolcom Men's Shelterlen Gore-Tex Winter Boot - Choose SZ/Color , Madden Men's M-sorri Combat Boot - Choose SZ/ColorGentlemen/Ladies Indian Motorcycle Boots Size 9 NEW Economical and practical Comfortable touch General product , New Mens 13 D Anderson Bean Fish Vamp Square Toe Cowboy BootsDC Men's Heathrow Vulc SE Skate Shoe - Choose SZ/Color ,
    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709 - blurrypron.com>Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709 - blurrypron.com
    NEW MENS BROOKS The Wire 3 RUNNING/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOESGentleman/Lady Sperry Top-Sider Women's Walker Wisp Boot Quality queen Comfortable touch British temperamentWomens Nike 2018 Shox Gravity sneakers White (US SIZE 8)Clarks Ladies Casual Knee High Boots Caddy Belle , Columbia 1672111 Womens Vulc N Vent Slip Athletic Sandal- Choose SZ/Color.Vince. Mason black leather and snakeskin flat loafer size 10 41.5 EUC worn once!Easy Spirit Women's Gessica Black Synthetic Flats , New in Box Geox Janalee Womens Black Loafer Shoe 39 40 , $90 Steve Madden Womens Daisie Pointed Toe Pump Shoes, Blush Leather, US 10Women Nightclub Super High Heel Stiletto/Block Platform Party Wedding Dress HOT , BCBGeneration Treasure Dress Pump Womens Pointed Toe Shoes,White,9M,0570Report Ashlyn wedge sandal wedge pump natural cream sz 6 Med NEW , adidas TUBULAR SHADOW - White - MensNike Dunk High ABMNATION "Coedine" Codeine Overdose Custom Sneakers Mens 12 , Men's/Women's Jordan 5 Retro Wolf Grey Comfortable feeling Fast delivery Speed ​​refundNike Lab Veil Gyakusou Men's Running Shoes AH2181 600 US 12 , Nike Air Max IVO ( 580518 011 ) Mens Sneakers Trainers SIZE 9 USAdidas Alphabounce Kolors Red/Black/Blue/Gray AC7019 $150 Buy It Now!!! , AIR JORDAN WINTERIZED SPIZIKE Infared 23 3 6 future SIZE 12Gentleman/Lady Palladium Men's Pallabrousse Boots, Grey High grade Beautiful appearance Cheap orderMen Casual Shoes Fashion Leather Shoes for Men Summer Men's Flat Shoes NEW2018NEW Converse Chuck Taylor PC Cross Hi Mens Size 10 Shoes Sneakers Red Black NIB , Zota Unique Men's Studded Suede Dress Slip-On Loafer G3115-01 Black/SilverNike Wmns Run Swift Cool Grey Purple Women Running Shoes Sneakers 909006-005Women hot Shoes genuine Leather Sneaker High Heel Platform Wedge Ankle BootsNike Flyknit Lunar 3 Vivid women's Running 698182 501 Size 6Nike Air Huarache Run Ultra Womens 819151-015 Light Pumice Running Shoes Size 6 , Ryka Women's Devotion Plus-w, White/Chrome Silver/Frosted Almond, 8 M USChic Women Suede Fur Trim Ankle Boots Pointy Toe High Heel Stiletto Winter Boots , Dr. Scholl's Shoes Women's Casey Boot - Choose SZ/Color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709 - 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.

    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709 - 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
    Gentleman range/Lady ZANZARA Men's Hamel Chelsea products Boot wide for you to choose a wide range of products a wide variety of goods 88d9709
    Boots
    >
    ;