Never miss an update

NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba




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
Model: New Balance 574
Width: Medium (B, M) Modified Item: No
Color: Multi-Color Style: Running, Cross Training
Brand: New Balance
Never miss an update

NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba - blurrypron.com

    NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba
    NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba
    Asics Gel Lyte III 3 India Ink/India Ink H6W7N 5050 Women's SZ 7.5Lacoste Eyyla 317 Womens Light Pink Leather Trainers , naturalizer Morrison Low Rise Fashion Sneakers 528, White, 6 US / 36 EU , Lacoste Marcel Mid SPW10183A5 Light Red High Top Sneaker Women 7.5 , Lion Of Judah PopArt Design High top Women's Canvas Sneakers Black Shoes , Franco Sarto Pascha Slip On Sneakers 258, Black, 7.5 US / 37.5 EU , Adidas Mid Attitude Up Black Womens S81619 US Size 8 1/2 , Lion Of Judah PopArt Design High top Women's Canvas Sneakers White Shoes , Asolo Ember low hiking women shoe size 7 , Womens Skechers Go Walk 4 Pursuit Walking Yoga Lightweight Mesh Trainers , La Redoute Collections Womens Ultra Light Trainers With Elastic Detail , nike air max 1 ultra flyknit Taille 37,5Saucony Triumph ISO running shoes for women - size 8.5 availableWomens Skechers Synergy 2.0 Mirror Image Lightweight Walking TrainersWomens Skechers Empire Inside Look Lightweight Memory Foam Walk Trainers , Saucony Ride 8 women`s running shoes - size 6.5 (37.5 EU ) , Womens Skechers Go Walk Joy Pivotal Sport Yoga Lightweight Gym Sneakers US 6-11 , Womens Skechers Burst Very Daring Walking Memory Foam Running Sneakers US 6-11Nike Womens Downshifter 7 Running Trainers 852466 Sneakers Shoes 004 , Womens Superga 2750 Cotu Classic Summer Low Top Canvas White Sneakers US 6-9.5Womens Superga 2750 Cotmetu Casual Metallic Low Top Plimsoll Trainers , Man/Woman Boohoo Womens Chunky Sole Trainers High quality and low overhead special function General product , Womens Vagabond Casey Black Shiny Satin Fashion Platform Wedge TrainersSaucony GUIDE 9 women`s running shoes - size 8.5 ()Womens Skechers Flex Appeal 2.0 Estates Lightweight Memory Foam Trainers , ADIDAS Originals STAN SMITH WOMENS FLORAL STAMP JACQUARD SHOES SNEAKERS S32255Bob Marley PopArt Design High top Women's Canvas Sneakers White Shoes , Womens Skechers Flex Appeal 2.0 Tropical Breeze Memory Foam Gym TrainersAdidas Originals ZX Flux ADV Smooth Slip - on Sneaker Shoes Womens
    NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba - blurrypron.com>NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba - blurrypron.com
    TRIPPEN Germany - Women's Leather CLOSED Ankle Boot TURN f black EU41 US10 UK7.5 , New Sofia Cruz Taylor Black Womens Shoes Casual Shoes HeeledTory Burch Navy Blue Espadrille Slip On Loafer Flats Shoes Size 7.5#savingglory SONIA RYKIEL Paris Gladiator Flatform Sandals Glitter 36 Au 4.5 , Jeffrey Campbell Charlin Point Toe Mustard Mules Flats Sz 7MVince Camuto Sammson Black Womens Shoes Size 6 M Heels MSRP $129Men/Women Bellini Zaza Women's Pump flagship store First grade in its class a wide variety of goods , Bordello Women's Teeze 06 Cream Patent Pumps , Hot Womens Round Toe High Block Heel Ankle Strap Mink Fur trim Pumps Party ShoesNEW JEFFREY CAMPBELL BEIGE CORDOBA EMBELLISHED SANDALS Shoes WOMEN'S SIZE 6$1,200 Sexy Genuine JIMMY CHOO Heels - only worn once, immaculate - EU size 40 , Yves Saint Laurent Bianca 105 Oro Gold T Strap Platform Sandals 38 8 , Gentlemen/Ladies NEW MARCELA YIL WOMENS SANDALS Various goods special function Popular recommendation , Nike Air Max Jewell Leather Summit White Shoes AH6790-100 $110 New Womens US 9Ankle Strap Faux Leather Kitten Mid Heel Women Sandals Cut Out Shoes Party 4Y-24Fly London Yala Perforated Wedge Sandal - NIB - Free ShippingVans BRIGATA Black Black VN-0ZSLBKA (533) Skateboarding Men's Shoes , NEW retro Reebok Club C Kendrick Lamar Denim size 8.5Nike Mayfly Lite SE Sneaker Men Running Shoes Blue/White/Black 876188-400 Size 9 , Hush Puppies Men's Sneakers Body Shoe INHERENT Brown 7-12 WIDE W *Mens Air Jordan 4 IV Retro Alternate Motorsport Black blue 308497-006Men's/Women's HARLEY DAVIDSON MOTORCYCLE BOOTS MENS 9.5M Attractive and durable High-quality materials Exquisite (processing) processingNautilus Men's ESD Waterproof Work Shoes - Comp Toe Brown 12 DAdidas ZX Flux Women's Slip On Athletic Running Shoes Black sz 10US, 42.66EUR , New Sperry STS82402 Crest Vibe Washable Mauve Pink Women's Boat Shoes 6.5 US , Women Real Leather Lolita Cute Sneaker High Top Board Street Sport Casual Shoes , NEW IN THE BOX VANS LIMITED EDITION DISNEY SK8-HI MICKEY & MINNIE FOR WOMEN , Roces Women's 611 Inline Skates R100 White/Purple Skates , Nike Air Max Zero Si 881173-101 OATMEAL Womens Size 5Gentlemen/Ladies Vibram Women's V Trail Runner Modern and elegant fashion Low price Acknowledgement feedback
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW BALANCE 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba - 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 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba - 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 18882 WOMEN WOMEN mogochinese-18883 WL574CPL CLASSICS RUNNING SNEAKERS 95521ba
    Athletic Shoes
    >
    ;