Never miss an update

SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e




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: SPRING STEP PRO
Style: Woman_Footwear_Shoes MPN: 8348866435
Never miss an update

SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e - blurrypron.com

    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e
    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e
    Drew Shoes Fusion Women's size 7 W wide Therapeutic Diabetic Extra Depth ShoeBettye Muller Newport Women's Fashion Sneakers Black , Gentleman/Lady Joie Temple Women's FLATS Saglia use Let our goods go to the world A balance between toughness and hardness , Remonte Women Leather Loafers Size 9.5 Euro 40 White Blue Slip Resistant , TORY BURCH Orange Leather Logo Ballet Flats sz. 8.5PAPILLIO BY BIRKENSTOCK AUDREY ANTHRACITE BIRKO-FELT WOMENS US 7N (3000) , *NEW!* J.Crew Ankle Wrap Espadrilles Leather Lined Canvas Fresh Poppy US 9Farylrobin x Free People Womens Geo Plains Sandals Shoes White Size 6 NewWomens Shoes Aetrex Iron Braided Mary Jane Size 38 Medium Comfort $130 RetailWomens DANSKO leopard print bronze leather oxfords shoes sz. 36 NEW!Manolo Blahnik Shoe Red Embroidered Fabric Kitten Heel Size 35Amalfi by Rangoni Size 7.5 M Cielo Sedano Green Leather Flats New Womens ShoesNAOT Aroha Mary Jane LOAFERS Ladies size 37 / 6 Bronze Leather Shoes New in BoxPRADA Black Patent Leather Logo Stamped Top Accent Medium Heel Loafers Sz 8.5 , Women's DANSKO Brown Leather SZ 37 or US 6.5 VG Cond! Ultra Comfortable!Merrell Veranda Tie Cloudy Olive Brown Leather Booties Womens 6 Heels Oxford New , OLUKAI WOMENS WAIALUA MESH VINTAGE INDIGO SIZE 6Sam Edelman Women's Farrell Blue Suede Moc Driver Slip-On Shoes Size 6.5 Medium , J Crew Collection Kiki Calf Hair Ballet Flats 9.5 02090 Black White Womens Shoes , NEW SPERRY TOP-SIDER A/O GREEN MILLY CVS BOAT SHOES WOMENS 8.5 FREE SHIPAnyi Lu Shoes Flats Black Ballet Scrunch Textured Handmade Italy Size US 7New Zara Striped Platform Derby Shoes Size 40/ US 9Dansko Chrissy Nappa 2710-020200 Black Leather Mary Jane Clogs Sz 37 USA 7 $160 , ALLEGRIA 41 FLORAL PATENT LEATHER CLOGS WOMEN SIZE 10.5 - 11 M , Cole Haan Zerogrand Oxford Womans Black Sz 8.5B , Aerosoles Women's Drive up Penny Loafer, Orange Suede, Size 9.5 , Spenco Chambray Slide - Women's Supportive Shoe Red - 7 , Steve Madden Hugh Embellished Mule 1/2" Heel Slip-on size 8.5 NEW IN BOXBOUTIQUE 9 Women's Neekko Ballet Flat, BLACK, CALF HAIR, 8.5M, MSRP $150
    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e - blurrypron.com>SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e - blurrypron.com
    Uwezo Women's Cowhide Desert Boot - Round Toe - 2001 , HUNTER Original Exploded Logo Snow Boot Black Size 7 -$265 , REDBACK L/Z COBAR SOFT TOE WHEAT NUBUCK ZIP UCWZ , Shoes Puma 363715 08 Rebound Street v2 Iron Gate Man basket sport , Diesel Happy Hour Vintagy Lounge Blue White Suede Mens Trainers ShoesCharles Jourdan Silver & Black Satin Bow Elegant Evening Pumps Heels Sz 7.5 , Isabella Fiore Women's Slingbacks Heels Made in Italy Size 7 M Retail $299.99Auth Salvatore Ferragamo Gancini Shoes Pumps Black Leather Vintage AK17378gA Detacher light blue suede shoes block heels size US 9, Totokaelo, La Garconne , SPLENDID DALLAS Gray Suede Designer Sandals Wedges 10.0 M , Circus by Sam Edelman Women's Vanellope Sneaker - Choose SZ/Color , NEW BALANCE 878 SZ 9 PASTEL PACK MINT WHITE BROWN GUM ML878RMANIKE AIR FORCE 1 LOW '07 315122 423 BINARY BLUE/BLACK-NAVY BLUE - 100% AUTHENTIC , Nike Air Jordan 13 XIII Shoes Sz 7 Retro Low 136008-441 Brave Blue White BlackMens Jordan 1 Retro BHM, Size 8.5BZ899 COLMAR shoes green suede textile men sneakers , Nike Air Presto Blue / Blue 104231 Men's Size LNIKE AIR JORDAN 10 X 2011 RETRO BLACK RED CHICAGO BULLS SIZE 10 BRED XI CONCORDSperry Top-Sider Striper CVO Fleck Navy Shoes Men's 9.5 M US NIB New STS12148NIKE Air Max Zero Essential Noir Noir 876070 006Dr. Scholl's Shoes Women's Luna Sneaker, Black Lizard Print 9 M US , Womens Nike Air Zoom Vapor X HC Vast Grey, Black, Pink. Court Shoe, Tennis , Fabulicious Women's Gala 08MG Ankle-Strap Sandal Clear PVC/Clear Sandals , NIKE WOMEN'S AIR ZOOM ULTRAFLY QS SGPNike Air Max Thea Ultra JCRD PRM Women's Sneakers Running 885021-001 size 6Super Platform High Heels Womens Glitter Side Zipped Shiny Ankle Boots Shoes NewSbicca Womens Javiera Closed Toe Ankle Fashion Boots, Tan, Size 7.0Chinese Laundry Allure Heel Kristen Cavallari Boot Bootie Size US 6Joules Premium Wellies Black Rain Boots Yellow Bow Size 10 , Womens Frye Boots Wedge Carson Size 7.5M Cognac Brown
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e - 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.

    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e - 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
    SPRING MANILA-B-W STEP PRO - MANILA-B-W - Manila Size: Color: - Color: 46f895e
    Flats
    >
    ;