Never miss an update

NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02




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: SNEAKERS
Color: GREY GREEN NAVY Material: Suede upper
Brand: NEW BALANCE
Never miss an update

NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02 - blurrypron.com

    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02
    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02
    Nike Wmns Air Max 97 Ultra 17 Black Pure Platinum 917704-003 Women's Size 8NIKE AIR MAX 90 ULTRA ESSENTIAL 724981 500 Size us-7/8 , Womens Nike Air Max 98 AH6799-106 Sail/Radiant Emerald Brand New Size 10Nike Wmns Air Zoom Fearless Flyknit 2 Women New Black Training Shoes AA1214-001NEW DS $170 Nike AIR MAX 270 FLYKNIT Size 8.5 WOMEN Igloo Mint Green 1 90 95 97 , Steve Madden LIFT Womens Lift Fashion Sneaker- Choose SZ/Color. , Nike Air Force 1 High with Strap 334031-105 White Women's Size Brand New Size 7 , New Balance 997 Women Made Usa Running Lifestyle Shoes Gym Limited W997ER Sz 7 , Columbia Women's TWENTYTHIRD AVE Waterproof Tall B - Choose SZ/color , Adidas Originals Women's Stan Smith Farm sneakers Size 5 to 10 us CQ2814 , New Balance Shoes 008557 Grey 24.5cmNEW Nike Air Max Thea Women's White Sneakers Running Shoes US Size 7.5 M #A470 , WMNS Nike Air Jordan 1 Retro High Premium SZ 9 Desert Sand Bronze AH7389-021 , BB5117 adidas Originals Tubular Defiant Women's Sneakers Shoes size 6 , Nike Womens Air Max 98 Floral Sequoia Metallic black AQ6468-300 Multiple SizesNike SF Air Force1 Womens Sneakers Elemental Gold/ Elemental Gold or Fondamental , NIKE Womens Nike City Trainer 909013-060 WOLF GREY/CRIMSON TINT Womens Size 8.5Mephisto Allrounder Womens Baltica-Tex Sneaker Shoes, Graphite, US 8.5HOKA ONE ONE VALOR BLACK RUNNING SHOES WOMEN"S US SIZES , NIKE Womens Nike Flex Essential Tr 924344-001 BLACK Size 11Skechers for Work Women's Synergy Alloy Toe Work S - Choose SZ/color , Womens Size 7.5 SANO by Mephisto Excess Nubuck Bronze Perl Walking Shoes EUCPuma Roller Skates Pink Womens Size 9 Puma Roma Style, Retro/ Vintage , V-Italia Kiki Smoke 1041 Sz 40 (9 M) Casual Leather Trainers Hi-Top Sneakers857872-004 Nike Women SF Air Force 1 Grey Light Bne Gum s. 9.5NIKE AIR MAX 90 QS "NEW YORK CITY" STRAWBERRY CHEESECAKE WOMEN'S 9 [813150-200]Women's Cohesion 8 Running Shoe 7 B M USNike Air Zoom Fearless Flyknit Sz 7.5 Womens Cross Training Cool Grey/White-... , Adidas Originals arkyn Women's Sneakers Boost Shoes Sport Shoes Trainers ,
    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02 - blurrypron.com>NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02 - blurrypron.com
    ZARA AW17 GATHERED LEATHER OVER THE KNEE HIGH HEEL BOOTS RED ALL SIZES 6014/201 , Reebok NPC II 2 'White Light Grey' New (7 US) Air pump max gel plus tnsublime court shoes Christian Louboutin so Kate 2018 brandnews black t 38PLEASER DIAMOND-701 CLEAR RHINESTONE HEEL 7" HEELS PLATFORM SLIDES , Women's Vionic Codie Slip-On Sneakers Shoes Taupe US Sizes8 Sperry Women's Boat Shoe Anglefish Tweed Tan Brown 8Chic Women Sequare Toe Metal Buckle Slip On Block Heel casual Loafers ShoesINC International Concepts Deva Wedge Open Toe Heel Snake Print New with BoxWomens Low Block Heel Square Toe Transparent Sandals Loafters Bowknot Shoes PumpTed Baker London Koizu Loafer Pink Suede Leather Size 6 MRieker Women Clogs Sabot brown soft leather insole, V6879 Real leather NEW , NIB WOMENS SIZE 7 NIKE AIR MAX THEA SNEAKERS BLACK 599409 025 , CONVERSE ALL STAR CT CHUCK TAYLOR II 2 HI SALSA 150145C SALSA RED WHITE SZ: 9Adidas D Lillard 3 Dame 3 ASG Grey/Purple/Orange Men's Basketball Shoes BY8270 , New Nike Kobe X 10 TB, Green, 813030-302NEW MEN'S COLUMBIA Birkie Trail Hiking Shoe , NIKE SB ZOOM DUNK LOW ELITE QS 877063-002 Size 11.5 , Nike Air Huarache Mens 318429-609 Habanero Red Black Running Shoes Size 12.5 , NWT Nike Air Max 180 ID Alfons Holtgreve Air Max Day Men's Sneakers 10 AUTHENTIC , Nike Total 90 Laser ii FG, Total90 Laser ii FG, Sz 7Man/Woman ALDO Men's Zurlo-r Slip-on Loafer Crazy price, Birmingham Win the praise of customers SimpleNike Roshe One Print 844958 100 WHITE/BLACK NOTICE ME SNEAKER, Jogging size 10317581-601 Nike Womens Blazer Low Classic Carnation Black KhakiMizuno Women's Wave Hurricane 2 Volleyball Shoe, Black/Silver, 6 B US , NIKE Air Max 90 Beige Gris 325213-129Mizuno Wave Sky 2 [J1GD180239] Women Running Shoes Teaberry/Grey-NavyNike Wmns Air Huarache City Low PRM Just Do It JDI Black White Women AO3140-001 , Womens Leather Chunky Low Heels Side Zipper Pointed Toe Rivet Fashion Boots B477 , Man/Woman Lucky Brand Women's Garmann Boot Comfortable feeling High quality and economy Perfect processingNew Vogue Womens Occident Pointy Toe Floral Suede Ankle Boots Pull On Shoes ZIP
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02 - 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.

    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02 - 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
    NEW BALANCE mogochinese-29925 MRT580CD UNISEX CLASSIC RUNNING LIFESTYLE 29918 NAVY MRT580CD GREY SNEAKERS 9.5 bc58d02
    Athletic Shoes
    >
    ;