Never miss an update

Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123




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: Wedges
Brand: ROYAL REPUBLIQ
Never miss an update

Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123 - blurrypron.com

    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123
    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123
    Men's/Women's Jessica Simpson Women's Romy Dress Pump Charming design Impeccable Global sales , Söfft Womens - Vanita Black/Copper 8.5 M US , Pleaser Women's Ado1017srs/c-b/b Ankle Bootie, Clr-Blk Rs/Black SPRS, 8 M USMen's/Women's Steve Madden Women's Smokin Heeled Sandal New varieties are launched High-quality materials Very good classification , Gentlemen/Ladies Nina Womens Cyrene Guarantee quality and quantity International choice Superb craftsmanshipRockport Women's Sto7h95 Plain Pump - Choose SZ/ColorKennel & Schmenger Women's Kiko Chelsea Boot Mud Suede 7.5 M UKFLY London Botin P143533010 RED Meli 37 Red , Steve Madden Women's Diva D'Orsay Pump, Rose Gold, 8.5 M USAnne Klein AK Sport Women's OPALIZE Reptile Pump - Choose SZ/ColorCLARKS Women's Vendra Daisy Dress Pump, Black Interest Nubuck, 9 M US , Plenty By Tracy Reese Women's Capri Ankle Boot,Ebony/Black,39.5 EU/9.5 M USIvanka Trump Women's Bernie Pump, Gold, 8 Medium USECCO Women's Sculptured 45 Wedge Slip On PumpMen/Women NEW MOSCHINO WOMENS LOVE MOSCHINO HEEL Various styles Beautiful appearance Valuable boutiqueTrotters Women's Lauren Platform Pump, Tan Cheetah, 11 W US , Cole Haan Women's TALI Bow Pump, Navy Peony Suede, 9 B USRockport Women's Total Motion Charis Dress Pump, Black Leather, 9 M , CLARKS Women's Garnit Lucia Dress Pump - Choose SZ/ColorThe Highest Heel Women's Amber-302 Boot,Black Suede Polyurethane,6 M USNine West Women's Punton Synthetic Heeled SandalMarc Fisher Women's Kappa Pump, Beige, 6.5 Medium US , ECCO Women's Women's Shape 55 Plateau Shootie Dress Pump, Black Textile, 38 M USCole Haan Women's TALI Bow Pump, Navy Peony Suede, 8.5 B US , Jessica Simpson Women's Rianne Pump, Black, 7.5 Medium USThe Highest Heel Women's Amber-411 Bootie,Silver Sequin,8 M US , Ivanka Trump Women's LYSA Pump, Black, 9.5 Medium US , Cobb Hill Women's Willa High Top Sneaker, Almond Leather, 8.5 M US , Stuart Weitzman Black / White Largo Etch Crystaline Pumps ,
    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123 - blurrypron.com>Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123 - blurrypron.com
    NIB - Hunter Women's Original Tour Short Rain Boot (Dark earth Blue) - Size 9Womens 100% Suede Leather Rhinestones Embroidery Over The Knee Boot Queen Shoes , REDUCED Rag & Bone NYC Taupe Butakhan Suede Wedge Knee High Boots BNIBMustang Three Studded Buckle Straps Womens Black Ankle Boots - 38 EU , ECCO Women's Shape Pointy Ballerina Ii Pointed Toe Flat - Choose SZ/Color , ECCO Women's Fara Zip Bootie Fashion Sneaker Black Nubuck 38 EU / 7-7.5 USAravon Women's Mona Stone Leather Comfort ShoesNEW $760 DOLCE & GABBANA Shoes Espadrilles Orange Brocade Sandals s. EU39 /US8.5LK Bennett Palermo Platform  model red suede size 7 , NIB995 VALENTINO ROCKSTUD Cage Green Metallic Leather Flat Shoe 40.5 10.5 10 9.5Man's/Woman's Shoe Republic Olive Darah Heel New varieties are launched Brand Sales online storewomens ladies side zipper stiletto high heels pumps dress shoes sizes 4.5-8 chic , WITTNER Women's Shoes Leopard Print Pony Hair & Black Leather High Heel Size 41 , MANOLO BLAHNIK White Leather Strappy Ankle Strap Sandals Size 37.5Via Spiga Women's Hana Leather Slide Sandals Size 7 Black Retail $195NWB SAINT LAURENT Made In Italy Candy Leather Sandals Size 38.5 $995NIB $1095 Giorgio Armani Milano Women's Black Suede Ankle Boots 40 Eu IT X1M267Women’s Mia Limited Edition Nefertiti Black Leather Strap Gladiator Sandals Sz 7 , Womens Adidas Fur Bone Sneakers Shoes Size 8 Clean! Rare!Safety Hiking Outdoor Shoes Nail Proof Steal Toe Cap Boots Size 46Gentleman/Lady Skechers Sport Men's Air Varsity Sneaker Louis, elaborate Order welcome Quality and consumer first , Converse Chuck Taylor All Star II 2 First String Marble Collection BLACK 152578C , Cole Haan Mens Grandsprint Wing Tip II Mikeshake Suede Leather Shoes 8.5 M NIB , Sperry Gold Cup Bellingham Men's Wingtip Ivory Derby Sz 10.5M 2081Cole Haan Brown/Cream Plain Toe Saddle Oxford Men's Size: 8.5D , NEW COLE HAAN MENS MEN'S ORIGINALGRAND SHWNG WOODBURY-IVORY , Man/Woman adidas GAZELLE - Grey - Womens Not so expensive Won highly appreciated and widely trusted at home and abroad Fair price , Vaneli Suede Ankle Boots with Tassel - Dommie Womens Navy Size 7.5W Wide NewRockport Women's Gail Patch Ankle Bootie, Black Suede, 9 M USSam Edelman Orencia Knee High Suede Boots Sz 8 Chestnut Suede Stiletto NEW $200 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123 - 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.

    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123 - 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
    Man's/Woman's NEW ROYAL REPUBLIQ WOMENS ESPADRILLES function ROYAL Diverse new Different design special function Different goods 1a00123
    Heels
    >
    ;