Never miss an update

PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95




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: Puma
Style: 19166701 Color: Black/Metallic Gold
Never miss an update

PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95 - blurrypron.com

    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95
    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95
    Palladium women Pampa Puddle long shoes olive 93085-304 US5.5-8.5 04'WMNS NIKE ROSHERUN PRINT LIGHT MAGNETA/BLEACHED TURQUOISERUNNING WOMEN'S SIZE 11Man/Woman Sneakers and Athletic Keen Glenhaven Black Special purchase special function Global salesDemonia Women's Emily 375 Thigh High Boot Black Stretch Vegan Leather ZipperAdidas BB6084 Women Pureboost X Element Running shoes white Sneakers , WMNS NIKE ROSHE ONE PARTICLE PINK/SAIL CASUAL SHOES WOMEN'S SELECT YOUR SIZEMen's/Women's Nike Shox Gravity Women's Black/Black Q8554001 Strong heat and wear resistance High-quality materials Elegant and robust menuNike Women Free RN 2017 Black White Women Running Shoes 880840-001 US5.5-8.5 04' , NIKE WOMAN FREE 5.0 TR FIT 5 BREATHE SIZE 10.0 SUNSET GLOW NEW RARE RUNNING , New Balance Women's Shoes U420 PWB Size 4 us , Nike Women Air Zoom Pegasus 34 Running Shoes White 880560-103 US5.5-8.5 04'Nike Air Force 1 '07 Mid Women's Black/Black 66731001Naturalizer Women's Motley Sneaker Modern Grey Nubuck SneakersMen's/Women's New Balance 530 Women's Black W530PRA The color is very eye-catching special promotion wonderfulNIKE WOMENS AIR MAX 1 ULTRA FLYKNIT PHOTO BLUE DEEP ROYAL PINK 843387 400Brooks Women's Adrenaline GTS 18 Running Shoe Navy/Teal/Mint , Mizuno Women's Wave Lightning Z3 Volleyball-Shoes Black Yellow Blue361 Degrees Women's Sensation 3 Running Shoes - White/Ebony (Y852-0007)Gentlemen/Ladies Harley-Davidson Women's Tegan Black quality Highly praised and appreciated by the consumer audience As of the latest model , Nike Women Air Zoom Pegasus 34 Running Shoes Pink 880560-105 US5.5-8.5 04'ADIDAS SUPERSTAR BOLD WOMENS SHOE UK3.5-6.5 BA7666 10' , Man's/Woman's Ellie Women's Celia Black ABS Many varieties Attractive fashion classic style , Nike Air Huarache City Low Womens Atmosphere Grey/Atmosphere Grey/White H6804004 , Propet Women's Harper Sneaker Black Full Grain LeatherAltra Women's Lone P - Altra Women's Lone Peak 3Under Armour Threadborne Push TR Womens Overcast Gray/Tropic Pink/White 96206102Adidas Climawarm All Terrain W [CG2734] Women Running Shoes Black/White , Men's/Women's Demonia Women's Sinister 64 Black Polyurethane online sale Known for its good quality Characteristics , [bargain] Mizuno Wave Inspire 11 Womens Running Shoes (B) (08) | RRP $200.00
    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95 - blurrypron.com>PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95 - blurrypron.com
    Anthropologie Trimmed Chelsea Boots by Miss Albright Taupe Suede Size 9/40 $238 , Men/Women Ladies Vince Camuto Booties Size 4 superior Win the praise of customers Simple , [bargain] Brooks Pureflow 3 Mens Running Shoes (D) (030) | RRP $200.00 , Via Spiga Vesta Fringe Dress Boots 417, Black, 5 US / 35 EU , Buckler Buckbootz BBZ5666 black ladies non-safety waterproof wellington boot 4-8 , Hush Puppies Women's Aubree Chardon Slip-On Loafer Black 8.5 M US , Isaac Mizrahi New York Josh Oxford Flats 9.5M 1049New Sperry STS82589 Seaside Weave Platinum Silver Women's Casual Shoes 6.5 US , DOLCE & GABBANA MULTICOLOR POM POM LEATHER CRYSTAL BALLERINASAndre Assous Womens Heels Shoes Strap Back Wedge Black Patent Sz 11 Pre-OwnedED HARDY VERA HEEL Platform Shoes 7 4.5 38 23 Women Lady Holiday GiftSalvatore Ferragamo Mary Janes/heels Size 7.5 US Tan/Nude Mint Condition , Women's Transparent Rhinestone Open Toe Med Heels Wedge Shoes Slingbacks Sandals , Womens Open Toe platform stilettos high heels zip denim jean sandals shoes plus , Women's Steve Madden Teaser Grey Suede Ankle Strap Heeled Sandals Size 8.5 M , UNRELEASED Nike LeBron Soldier 10 SFG Lux University Red 911306-600 James Sz 14adidas Harden B E 2 II James White Blue Grey Men Basketball Shoes Sneaker BB7672Nike Zoom Fly Undercover Gyakusou Ink AR4349-500 Size 13 w/ receiptVANS x METALLICA - Half Cab Pro Shoes (NEW) Mens Size 11.5 BLACK ~ Kill Em All ~ , BELLEVILLE Desert Tan Combat Boots Gore-Tex - USGI Military Issued - NEW SZ 8.5New Olukai 10363 2626 Makia Charcoal Men's Casual Slip On Shoes 11 USMr/Ms Rockport Mens Schemerhorn OxfordM- Pick SZ/Color. Diverse new design Skilled manufacturing Elegant and stable packagingMen's Leather Buckle Strap Black Business Style Wedding Dress Shoes Chic Sbox1 , adidas Originals Women's Promodel W Sneaker - Choose SZ/Color , HOKA ONE ONE HUAKA WOMEN’S RUNNING SHOES BLACK / FUSCHIA -US SIZE 7 -NEWLucky Brand Womens REBEKA Rubber Closed Toe Ankle Rainboots, Ruby Wine, Size 6.0 , Mr/Ms Sam Edelman Boots Not so expensive Win highly appreciated Elegant and solemn , XOXO Women's Barron Ankle Bootie, Taupe, 6 M US , NEW Hunter Original Woman's Rainboots Chocolate Tall Matte Authentic Size 9 , Frye Melissa Womens Button Back Brown Zipper Riding Boots Size 8M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95 - 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.

    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95 - 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
    PUMA Defy Mid Varsity 29229 PUMA Women's Black Mid/Metallic Gold 19166701 1581d95
    Athletic Shoes
    >
    ;