Never miss an update

CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3




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: Adidas
US Shoe Size (Men's): Please check in drop down menu Style: Athletic Sneakers
Never miss an update

CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3 - blurrypron.com

    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3
    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3
    Adidas Originals Mens ZX 8000 Boost Black Teal Red Sneaker Shoes B24953 12 NEW , Nike Mens Lebron X 10 Miami Dolphins Size 13 Teal Orange , Under Armour 1285652 942 SpeedForm Gemini 3 Gray Men's Running Shoes 8 USADIDAS MEN EQT SUPPORT ADV ATHLETIC SHOES [CP8928]BLACK/BLACKNew Balance 373 Retro Gray Trainer Sneakers ML373GRJORDAN SKY HIGH RETRO LOW 454076-004 BASKETBALL SHOE MEN'S US SZ 8.5 MEDIUM (D)M , Nike Men's Lunarepic FK Shield Gyakusou Seaweed Black Gold Size 11.5 859891-300 , Nike Air Force 1 Low 16’ Seasonal Phantom Sail Gum Sole Size 9Jordan 1 Mid - Obsidian/Univ Blue - White - 554724 405 - Mens: 9/Wmns: 10.5 , New Balance 530 Black And White Gum Mens Sz.10 (Send Offer)834064 402 Jordan Men Reveal Midnight Navy Platinum Infrared 23 Size 13 , New Men's Nike Air Force 1 High 07 Shoes (315121-610) Men US 9.5 /Adidas PureBOOST All Terrain Black/Grey Men's Running Shoes S80787 , Nike Air Footscape Magista Flyknit Wolf Grey Size 12.5 816560 001Nike Match Classic Suede Sneakers Sz US 8 Men’s shoes nikelab jade max force air , New Balance Sonic VI Men's FuelCore Sonic Running Shoes (MSONIBS) Black, 8.5; 10 , Adidas NMD R1 S31515 Mens Sneakers 2016 Blue Heel Tab Black Sz 11 , ADIDAS crazy explosive grey white 10.5 Excellent condition , Adidas Mat Wizard David Taylor Men's Wrestling Shoes Olive Green/Orange, BB3297 , NIKE Zoom Forever Waffle 5 XC Black Spikeless Cross Country Shoes NEW Mens 9.5 , Puma x Kickslab Disc Blaze Desert Trooper Black Sand M Shoes 363061-01 1702-61 , Nike Air Jordan 1 Retro High Men's Basketball Shoes, 845018 142 Size 10 NEW , Man/Woman Adidas Matchcourt High RX quality Carefully selected materials Sales online storeNike Air Max 1 Essential Black White Turquoise Grey 537383-013 Sz 9 , VINTAGE NIKE AIR FORCE 1 American flag SHOES SNEAKER SIZE MENS 10MEN'S ADIDAS ORIGINALS TUBULAR RADIAL S76717 men's running shoes ICE MINTNike Air Huarache Drift Blue Nebula Black White Sz 9.5 AH7334-403Nike MercurialX Superfly VI Academy CR7 TF men soccer shoes NEW jade AJ3568-390Nike Nikelab Roshe Two 2 Flyknit V2 Mens Green Camo 918262-300 Training NIB ,
    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3 - blurrypron.com>CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3 - blurrypron.com
    New Casadei Black & Pink Patent Leather Boots Size 36 US 6Reebok Floatride RS ULTK [CN2235] Women Casual Shoes Black/Skull Grey , MORI MADE IN ITALY SLIP ON FLATS SCHUHE SHOES BALLERINA LEATHER WHITE BIANCO 37 , New Mollini Dwane Womens Shoes Casual Sneakers Casual , Gentlemen/Ladies Pleaser Pink Label TEEZE-06GW Beautiful design Various types and styles Diversified new design , Fitflop / Fit Flop Calf Hair Loafers EURO 40 / Sz 8.5TARYN ROSE Gold Peep Toe Ballet Flats - Size 9.5Apex Women's Evelyn Brown Leather Business Shoes , Pleaser ADORE-708FLM UV Pink Flame Exotic Dancer Stripper Club Slide Sandal Heel , Clarks Caddell Denali Comfort Wedges 795, Black, 9.5 US / 41 EU , Manolo Blahnik Metallic Brown Textile & Velvet Leopard Print Sandals SZ 39 , Womens Shoes Adrianna Papell REMY Platform Peeptoe Pumps Heels Black Ray LeatherSam Edelman Paulette Black high heels Posh peep-toe silhouette pump suede NEWDesigner Pierre Hardy Black Patent Leather Loafer , NIKE AIR FOOTSCAPE MID PARTICLE PINK PRESTO HUARACHE WMNS SZ 6-10 AA0519-600 , Mens Nike SB Trainerendor L Cargo Khaki Metallic Cool Grey White 806309-301Adidas NMD R1 Running Shoes in Grey/Grey/Core Black Men's Size 9 , Nike Air ZOOM KOBE 8 VIII 639654-674 year of the horse red go YOTH SIZE SZ 11PUMA NIZZA RUDOLF DASSLER VINTAGE MEN SHOES BLACK 0400009-01 SIZE 11 NEW , Adidas Dame 3 - Chinese New Year CNY - Size 9 Basketball Shoes Lillard BB8272Men's Nike Air Jordan Retro 1 High OG "Crimson Navy" Athletic Fashion 555088 606 , Vintage Double H Field Combat Cap Toe Military Biker Leather Motorcycle Boots 10ECCO Men's Soft 7 Boot Fashion Sneaker - Choose SZ/ColorGentlemen/Ladies SEOPOL TAUPE Online Shopping a good reputation in the world fine , Stacy Adams Mens Madison Slip-On Loafer D US- Pick SZ/Color.Adidas Women's Adizero Tempo 9 W Running Shoes Sneakers TrainersNike Air Max Axis Women's Running Shoes (Size 9.5) Wolf / Coral AA2168-005 , Vans Peanuts Charlie Brown Tree Christmas Skate Shoes Women's 10.5 Men's 9 NewTwisted X Boots Women's WDM0025 Driving Moc Bomber/Purple Leather Driving Shoes , NEW! Nine West QUALNER Navy Blue Black Booties Ankle Boots 9 M $149
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3 - 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.

    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3 - 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
    CQ2379 collegiate white Adidas Men black EQT Cushion ADV white core black collegiate royal 5955bb3
    Athletic Shoes
    >
    ;