Never miss an update

New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8




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: New Balance
Style: Road Running Manufacturer: New Balance
Size Type: Regular MPN: W690V4 Run Shoe-W
US Shoe Size (Women's): Multiple Variations Model: W690V4 Run Shoe-W
Never miss an update

New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8 - blurrypron.com

    New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8
    New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8
    Easy Spirit Traveltime234 Black/Black Leather Womens Mule Size 7N , ASICS Womens Gel-195 TR Cross-Trainer-Shoes- Pick SZ/Color.New Vivobarefoot One Womens Minimalist Vegan Sneaker Trainer , Skechers Zinger - Flicker Black/Gold Womens Fashion Sneaker Size 8MPUMA Women's Basket Classic LFS WN's Fashion Sneaker, White Black, 10 M US , Skechers Sport Women's Empire Rock Around Fashion Sneaker , Skechers Go Walk Revolution Ultra W Charcoal/Blue Womens Walking Shoe Size 6.5M , Merrell Women's 1SIX8 MJ AC+ Fashion Sneaker - Choose SZ/ColorWomen's Under Armour Thrill, Black/Black, 5 B , Skechers Women's Go Walk 2-Backswing - Choose SZ/ColorSkechers Ultra Flex - New Season Black Blk Womens Walking And Trainning Shoes S , New Balance Women's Prism V2 Running Shoe - Choose SZ/Color , Dr. Scholl's Shoes Women's Madi Mule Fashion Sneaker, White Perforated, 8.5 M US , Skechers Performance Women's Go Walk 2-Axis - Choose SZ/Color , Saucony Women's ProGrid Integrity ST2 Walking Shoe Black/Grey 5 2A US , Nine West Women's Palyla Synthetic Walking ShoeSPERRY RAVE VERGE WOMEN'S SNEAKERS US SIZE 6.5 M CANVAS HIGH TOPSkechers Go Run 600 - Defiance Black/Hot Pink Womens Workout Shoe Size 6M , Salomon Women's XA Pro 3D CS WP Shadow/Artic Trail-Running Shoe 9M , Skechers Women's Studio Comfort-Premiere Class Sneaker - Choose SZ/Color , Skechers Performance Women's Go Step Lite Origin Slip-on Walking ShoeBlack7.5...PUMA 36459102 Womens Vikky Velvet Rope Sneaker- Choose SZ/Color.NEW MIZUNO WOMENS WAVE CREATION 14 PREMIUM CUSHIONED SPORT SHOESMerrell Women's Duskair Maui MJ LTR Fashion Sneaker - Choose SZ/ColorOluKai - Pehuea - Women's Slip on Shoes Pavement / PavementSkechers Elite Flex Mens Slip On Bungee Sneakers Navy 10VANS New Authentic MG Tan MG Vault Classic Lady Shoes Size USA 7 , U.S. Polo Assn.(Womens) TAMARA - GYJYMT Womens Tamara Fashion SneakerMan/Woman ASICS Women's Upcourt 2 Volleyball Shoe Special purchase Quality and quantity guaranteed various kinds
    New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8 - blurrypron.com>New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8 - blurrypron.com
    NIB $395 Tory Burch Gemini Link Ankle boots Bootie Coconut Brown sz 8 Logo , NIB PRADA NAPLAK PATENT BLACK LEATHER BOOTS VIBRAM 7.5 US 37.5 EUNew Tory Burch Blossom 90mm Boot Ros 32701 Calf Black Leather 8.5Men's/Women's Tahari Inca Chain Ballet Flats, Charcoal Innovative design Stylish and charming various kinds , Marni Black/Red Crystal Embellished Loafers Moccasins /Cole Haan Women's Zerogrand II Ballet Flat, Black Leather, 8.5 B USVince Women Shoes Black Flats Leather Snake Print Slip On Loafers Sz 8.5 M /38.5 , Chloe Tan Leather Scallop Rivet Ballet Flats Size 38.5 , BCBG MAXAZRIA Pewter Metallic Lizard Leather Shoe New 7.5 Strapy Sandal $195 NIB , Stuart Weitzman grey/ black Capped toe ankle booties - Authentic 7.5New PUMA VOLTAIC 2 NM, Running Shoes White-Gray-Russet Orange ModelUnisex Puma Blaze Cage evoKNIT Trainers Everyday Sneakers Black Shoes , Puma Reverb Mesh - Black - MensNike Zoom WINFLO 3 Dark Grey/Volt Men's Training Running Shoes Size 10 , Allbirds Men's Wool Loungers SF Grey 10 ShoeNIKE Vapor Carbon 2014 Elite TD Black Gold White Football Cleats NEW Mens Sz 12 , New Balance Men's Athletic Shoes Cross Minimus Trainer Shoes WIDE|MediumNike Epic React Blue Glow White Photo Blue Volt Neon Green Sz 8-13 AQ0067-401 DS , Merrell Men's All Out Blaze Waterproof Hiking Boot Burnt Maple Style J32789Adidas Crazy Light Boost 2018 Summer Pack Black/Solid Grey Basketball B437992012 Nike Air Max 1 PRM Premium Pimento Red Black 3M size 12OLUKAI Nohea Brown Cotton Twill Casual Comfort Vegan Shoes Men US 8 Minimal WearVANS HALF CAB PRO BABY BLUE WHITE SKATE SHOES MENS AUS SELLER KINGPIN SKATEBOARD , New $120 Material London House Men's Shoes Size US 11 BlackConverse Chuck Taylor All Star Low Top Canvas Women Shoes M9696 Red White , New Nike Womens Air Force 1 HI SE Athletic Shoes Sneakers 860544-001 Sz 7.5Womens Round Toe Mixed Color Slim Stretch knitting Over Knee Boots Riding ShoesEasy Street Northern Cross Strap Ankle Booties, Tan/Brown Croc, 7 W US , Pleaser ADORE 7" Ankle Boots 1018 1019 1020 1021 Exotic DancingReport Women's Sanjay Fashion Boot, Black, 7 M US 1161 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8 - 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 - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8 - 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 - Women's W690V4 Running Shoe - 21466 Choose Shoe SZ/Color 32671d8
    Athletic Shoes
    >
    ;