Never miss an update

Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408




Never miss an update

Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408 - blurrypron.com

    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408
    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408
    Gentleman/Lady Saucony Women's Guide 10 Running Shoe main category fashionable Speed ​​refund1807 adidas ORIGINALS DEERUPT Women's Training Running Shoes B37602 , Womens air max+ 2012 Nike Shoes Size 9.5 , Gentleman/Lady Spring Step Women's Heroic Bootie Moderate price special promotion SimpleMephisto Women's Giacinta Slip-On sz 9 , Nike Wmns Zoom All Out Low 2 Running Womens Shoes Midnight Fog AJ0036-002ADIDAS ORIGINALS NMD XR1 PK RUNNER WOMEN's BOOST RUNNING UTILITY IVY NEW USA SZ , Bling Nike Black Tanjun Women's Swarovski Crystal Nike Diamond Kicks , Men/Women L'Artiste Women's Emese Bootie Outstanding features modern Human border , Crystallized Chicago Cubs Cubbies Shoes-Custom-made Any Team Any Sport Sz7-11 , Wmns Sample Air Max Plus SE Premium (U.S) Sz 7 (862201 700) , Tod's Women's White And Silver Leather Slip-On Espadrille Sneakers 36.5 ($550) , Man's/Woman's Brooks Ghost 11 Women's Black/Pink/Aqua 2772A017 service Beautiful German Outlets , Man/Woman MBT Womens GTRunning Shoe- Pick SZ/Color. High security Affordable Quality and consumer firstNEW NIKE AIR FORCE 1 '07 LX WOMENS 898889-100 Women Sz 7=RAREADIDAS ULTRABOOST X MID STELLA McCARTNEY WOMEN'S RUNNING SHOES SIZE 9 BY1834 , WMNS NIKE AIR MAX 95 LX DUSTY PEACH-DUSTY PEACH SZ 6.5 [AA1103-201] , Durango Boot Women's DRD0104 10" Lady Rebel Crossed Revolvers Boot Tan/PinkReebok Women InstaPump Fury Celebrate pink dynamic pink electric peach solar yel , NEW Nike Air Max 97 UT Women's Shoe AJ2248-300 Sequoia/Ntrl Olive Sz. 8.5 NEWPorsche Design Women's Size 41 Size 11 US Tan Leather Black Sneakers Shoes Tech , Adidas Women Energy Boost 3 white charcoal solid grey crystal white AQ5964Nike Flyknit Racer Blue Lagoon Black Polarized Blue SZ 5 Womens 6.5 526628-401WOMENS NIKE AIR MAX 95 SE CASUAL SHOES SIZE: 5.5 SAIL ARTIC PINK BLUE AQ4138 101Nike W AIR MAX 97 PRM WOMENS Sneakers 917646-601 , Man's/Woman's Naot Women's Reserve flagship store First batch of customers Excellent functionGabor Rollingsoft 86.966.33 Black Mesh Visone Fashion Sneaker Shoe 9.5 NewADIDAS WOMENS ULTRABOOST PARLEY BC0251 BLUE SPIRIT/CARBON/CLOUD WHITENike Womens Air Max 97 UL '17 LX Sz 8 Gnsmke Whte Running Shoes AH6805 001NEW
    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408 - blurrypron.com>Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408 - blurrypron.com
    LAUREN by Ralph Lauren Womens Tia Leather Almond Toe Knee High Black Size 5.5NIB Frye Women's Mustang Pull On Leather Boots 75161 in Sunrise Size 8 Medium , LA CANADIENNE Stefania Black Waterprof Knee High Boots Womens 6 NEW IN BOXAndrew Charles 8103 SOFTY RESEDA 380 Loafers Men's Green AUCLARKS IGNIFY LOW GTX GORE-TEX BROWN NUBUCK LEATHER LADIES WOMENS WALKIN SHOESWomen's Tassel Loafers Patent Leather Platform Oxfords Flat Heel Gothic Shoes H6ISAAC-MADE IN ITALY- BROCADE OPEN TOE SLING BACK- HIGH HEEL------SIZE IS 7 BLady Couture Women’s Beauty Silver Sling Backs Heels , Brian Atwood | Inko Cork Platform Heels size 37 (US 7) , WOW!!! Sparkling Red Saint Laurent Slipper Shoe. Size 38.5 Great Condition!!!!!Cara Ankle Strap Sandal in Blush SatinCalvin Klein Saiden 8.5 Dress Sandals Lizard Python Snake Sand Grey Silver Peep , Reebok Women's Super Duo Speed Running Shoe - Choose SZ/ColorNike Air Zoom Mariah Flyknit Racer Pure Platinum Grey 918264-011 New Multi SizeNEW ADIDAS MEN'S CLOUDFOAM RACER TR ATHLETIC WALKING BREATHABLE RUNNING SHOESConverse All Star 2012 Limited Edition BCN - Size 12 - Brand New , Men's/Women's Nike Paul George 2 EP Outstanding features The latest technology Clearance saleStacy Adams Men's Fairchild Slip-On 25104 Black Leather , SIGNED ROGER FEDERER NIKE ZOOM VAPOR AIR JORDAN 3 - 709998 106 - SIZE 9 11.5 13 , Men's Chelsea Boots, Dress Genuine Suede Leather Boots, Black Boot, Formal Boots , 2018 hot sale Mens Occident Sneakers Loafers Driving Shoes Trainer Real LeatherCARLO MORANDI men shoes leather burgundy size 8.5 D.Nike Air Force 1 Swoosh White Womens Size 5.5Y 314192-994Adidas Gazelles Women's Size 7. Limited edition MINT! Never worn and with tags!Adidas Originals Women's Swift Running PrimeKnit Shoes Size 5 to 10 us CG4137 , Easy Spirit Women's Traveltim278 Mule, Taupe/Gold Multi Suede, 7.5 W US , Guess Ushal Ankle Booties Taupe Leather /Suede Side Zip Chunky Heel Size 7.5Stuart Weitzman Boots Shoes Outsole Measurement 10"Black leather boots cowboy boots 9.5w with silver chain made in USA $200 value , New Women retro leather ankle boots square toe gothic chunky heel shoes new ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408 - 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.

    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408 - 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
    Nike 004 Field SF 1 Special Field Air Force 1 Mid mogochinese-29986 Women's Shoes AA3966-002 700 004 c3e3408
    Athletic Shoes
    >
    ;