Never miss an update

NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a




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: Nike
Color: Slate Style: Running, Cross Training
Never miss an update

NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a - blurrypron.com

    NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a
    NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a
    New Balance Women Vazee Rush WLRUSHVC white silver mink WLRUSHVC , New Balance Womens 300 Indigo Pack Lifestyle Fashion Sneaker- Pick SZ/Color.New Saucony Ride 7 Neutral Running Cross Training Shoes Blue Coral Womens 6.5Fashion Women Girls White High platform Wedge Hidden Heel Athletic Sneaker Shoe , Skechers Street Womens Double up-Glitzy Gal Sneaker- Select SZ/Color.Ladies Skechers Flex Appeal-Pretty City Womens Street Walking ShoesNike Air Force 1 Hi SE Binary Blue/Muslin-Sail Denim 860544-400 Women's SZ 11.5Converse CTAS Hi Sharkskin Grey Womens Hi Top Trainers , ASICS Roadhawk FF - Women's Dark Grey/Silver/Glacier Sea, 6.5Nike Women's Flex Supreme TR 5 Training Shoes Dark Grey Hot Punch Pink SZ 6.5 M , Altra Provision 2 Aqua Blue Coral Women's Athletic Running Shoes Sz 5.5 12 NEWNike 698903-009 Air Max Women's Gray Lava Red Pink Running Athletic Shoes Sz 7 , Skechers 12765 Black/Charcoal Air Cooled Memory Foam Slip On SneakersNew In Box Women's Nike Flyknit Trainer Chukka 7.5 Crimson Black 805093-603Korean Womens Platform Athletic Shoes Pull On Round Toe Sneakers Hidden Heel Hot , Vans Classic Slip On Platform Black Womens Canvas Low-top Sneakers Trainers , NIKE FREE 5.0 WOMEN'S HYPER PUNCH NEW/BOX MULTIPLE SIZES 642199 600 , Ladies Lacoste Helaine Runner Walking Comfortable Fitness Gym Trainers All SizesNIKE Air Zoom Strong Womens Sz 6.5 Shoes Gray Black 843975 100 , WOMENS NIKE LUNARELITE+ 2 CROSS TRAINING RUNNING SHOES/SNEAKERS NEW $100 019Womens Fashion Leather Sneakers Sport Sandals Hidden Wedges High Heels Shoes , RARE Puma SKY II HI ROSES Woman's 361699 01 HIGH RISK TRIPLE RED BLACK BOOTS NEWConverse Chuck Taylor All Star II Hi Gold/White-White 555796C Women's SZ 7.5Rieker 537A6 Doris A5 Shoe - Women's Size 8.5/9, BlueNew Balance Fresh Foam 1080v7 NYC Marathon Women's Size 6.5 White Gold W1080NK7 , WOMEN'S/JUNIOR SHOES SNEAKERS PUMA SUEDE JR [355110 30]Asics T580N Gel Noosa Tri 10 Purple Green BLue Running Women's Shoes USED Sz 10Nike Womens Lunarglide 8 Shoes Black/White Size 7.5 NEW , Nike Huarache Run Sz 6.5 Women's [634835 016] Gum Bottom
    NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a - blurrypron.com>NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a - blurrypron.com
    New Women's Over Knee High Thigh Boots Block Heels Transparent Nightclub Shoes , Donald J Pliner Women's Ankle Bootie, Dark Brown, 6.5 M US , Mens Clarks Smart Slip On Shoes 'Falsetto Fall'Franco Sarto Womens Porter Leather Closed Toe MulesP. W. Minor Lord Pillow Back ST Steel toe shoes 1118  Size 10E USA , Men/Women Dyeables Women's Ariana Crazy price, Birmingham Clearance Complete specifications , Womens shoes Closed Round toe Slip on Pearls Mules Summer Slippers Sandals Sz , Trotters Women's Candela Dress Pump, Light Multi, 5 M US , $120 LUXURY REBEL LAUREL Blush Leather Designer Wedge Sandals 8Badgley Mischka Abigail Dress Wedge Sandals, Ivory , Muck Boot's Unisex Muckmaster Mid Black Boot - Mens Size 6 / Womens Size 7GEOX Patrick Cox Newton Brown Leather Retro Kilt Casual Men's Shoes 43.5 / 10.5Simple Men Mule Shoes Size 8.5 Euro 39.5 Brown Style 69136 Rubber Cushion InsoleMens Oxfords Slip On Printing Floral Real Leather Loafers Driving Moccasin ShoesSperry 0195412W: Top-Sider Men's A/O Boat Buck Brown Wide Width SneakerInvicta 90279 Womens Ocean Reef Quartz Stainless Steel and Silicone Casual , Invicta Womens Specialty Analog Display Mechanical Hand Wind Black WatchModello Reptilo - Handmade Colorful Italian Leather Oxford Dress Shoes brown , Man's/Woman's New Balance Women's WT610GY4 Trail Shoe fashion a wide range of products The first batch of customers' comprehensive specificationsNIKE LEGEND LOW SNEAKERS WOMEN SHOES BLUE/WHITE 311958-142 SIZE 6.5 NEW , NEW Nike Women's Zoom Vomero 9 Running Shoes Pure Platinum and Yellow Size 5 , Nike Air Zoom 90 IT Golf Shoe Sneaker 844648 100 size 7 WMNS , Adidas B75673 Women Pure boost DPR Running shoes pink white SneakersNew Balance 247 V2 Lifestyle Shoes Beige Women WS247-PBHogan shoes woman Sneakers H320 HXW3200AG80IGG547S white in leather , Jil Sander Navy Women's Rosen Sneaker Silver Calfskin/Mesh/Tweed SneakersFree People Decades Ankle Boot Tan Distressed Suede NEW Size 7Vince Camuto Women's Jaran Riding Boot 10M/40Womens Star Decor Cowboy Hot Chunky Heel Casual Pointy Toe Shoes Prom Ankle BootIvanka Trump - Mandel Booties, Women's Size 9.5 M, Black
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a - 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 NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a - 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 NIKE FREE NIB BALANZA Running WOMENS NEW 7.5 Slate LTD FREE NIB NR 141a52a
    Athletic Shoes
    >
    ;