Never miss an update

DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b




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
Color: Multi-Color Style: Athletic Sneakers
Pattern: Solid Width: Medium (D, M)
Country/Region of Manufacture: China Material: Nylon
Product Line: adidas
Never miss an update

DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b - blurrypron.com

    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b
    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b
    Adidas Men's ORIGINALS TUBULAR NOVA PRIMEKNIT GID Shoes Brown/Black BB8409 bPuma Suede Mid X Stuck Black Alife 358866 01 Men's SZ 13 , Reebok Zprint Elite Running Men's Shoes Size 7 , Men's Nike LunarGlide 8 Running Shoes Sz 6.5 NEW White Grey Black MSRP $120MEN'S PUMA CELL SURIN 2 PREMIUM OLIVE NIGHT-GOLD RUNNING SHOES SIZE 7 , Adidas Originals Men's Climacool 02/17 Black/White CG3347 - BRAND NEW IN BOX! , NIKE VAPOR SPEED LAX TURF SHOES THOMPSON BROS. EDITION [856542 080] MEN'S SZ: , Nike Air Presto Essential 848187-005 White Black Photo Blue Men's Size 9 , New Balance MRL247WT - Men's 247 Luxe Lifestyle Shoe Tan , Adidas Torsion ZX Flux In White, Men's Size 10Nike Lebron XII 12 Low Toronto Raptors Purple Crimson 724557-565 Sz 11.5 , NIKE Men's Hypervenom Phelon FG Soccer Shoes Cleats - Bright Crimson/Hyper PunchGentlemen/Ladies Nike LunarTempo 2 Men Black Orange excellent quality the most economical Contrary to the same paragraph , (768911-011) MEN'S AIR JORDAN FLIGHT FLEX TRAINER 2 BLACK/WHITE/BLACKNike Flex 2017 RN Men Running Shoes Anthracite/Clear Jade-Black size 8 , Gentlemen/Ladies Vans Men's Sk8-Hi Trainers, Brown Best-selling worldwide Pleasant appearance Known for its beautiful qualityDC Shoes Men's Net SE Sneaker Shoes Black Kicks Trainers Sports Clothing ApparelNike Men SB Lunar Black Sunset White Size US 9 TT 10 749564-081Adidas Consortium x END Clothing ZX 700 Boat Tan Chalk White Gum B39341 GCNike Hypervenomx Proximo II DF IC Mens,Solid,Medium,Synthetic,852577 071 Sz-7Nike Free RN 2017 Grey Volt Men Running Training Shoes Sneakers 880839-004 , MEN'S 9.5 ADIDAS SUPERSTAR CORE BLACK GOLD VULC X DGK DIRTY GHETTO NMD R1 B72827 , Nike Comfort Air Max 442090-401 Men's Size 9.5 Blue Pre-OwnedNWB New Balance M498 KBB Olive Green Men Leather running walking shoes 0 9 7 1Nike Hypervenom Phantom Magista Opus Mercurial Vapor Tiempo Legend Soccer Cleat , NIKE AIR MAX INVIGOR MEN'S SHOES ASST SIZES NEW WITH BOX 749680 010Adidas x PW Tennis Hu Pharrell Williams Ice Blue Tactile Blu CP9764 Sizes 8-13USNew Nike Air Huarache Utility PRM 806979500 Sz 10.5 Running Training Shoes , New Balance 574 Classic Black/Gum Casual Athletic Sneakers NB574BAB Men Sz 10.5
    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b - blurrypron.com>DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b - blurrypron.com
    PLEASER Sexy Extreme Platform 10" Heel Black Stretch Knee High Boots BEY2000/B/MSTELLA McCARTNEY New Woman Black Leather Boots Booties Shoes Size 38 ita $731 , Native American Cree Gold Deerskin Beaded Tall Wrap Mukluks Moccasins 8.5 , 2018 Womens Retro Tassel Round Toe Mid Cuban Heels Zipper Ankle Booties ShoesDonald J Pliner Loafers Slip On Animal Print Womens Shoes 9.5 M , New ILSE JACOBSEN Tulip Perf Ballet Sporty Slip-On Comfort Flats 41/9 BLACK , Frye Ivy Mule Womens 3479171-BLK Black Antiqued Polished Leather Shoes Size 8women's crazy Roman hollow out super high heel platform sandals shoes nightclubWomen Block Mid Heel Pointy Toe Glitter Patent Leather Rhinestones Slip On ShoesPleaser Women's Divine 415W Black Patent Heels , Dansko Demetra Leather Heels Bootie Sandals Taupe Euro Size 41 US 10.5 (W) NewLANVIN Size 6 Lavender Satin Fabric Wooden Platform Pumps , Nine West Women's Gary Heeled Sandal Red/Black Fabric Size 6.0OLUKAI WOMENS SANDALS OHANA DARK JAVA SIZE 9 , Ecco FTwear Womens Women's Bouillon T-Strap Sandal Dress - Choose SZ/Color , Puma Tsugi Netfit V2 EvoKNIT Mens Size 13 Aquifer/Whisper White/OceanDepthsNew Balance Men's 446 NEW AUTHENTIC White/Orange/Blue U446SNWUnder Armour Men's Heat Seeker Basketball Shoe, - Choose SZ/ColorNIKE Air More Money QS Sequoia Gold Black AJ7383 300 - Men 9 New/NoLid , Asics Onitsuka Tiger Tiger Corsair [D7N2L-0141] Men Casual Shoes White/BlueNike Kobe Bryant AD NXT University Red and Black 882049 600 A.D. DeMar DeRozenDeadstock Nike Flyknit Trainer Pale Grey Black White AH8396-001 Size 14 , Stacy Adams Raimondo Mens shoes Burg/Black Multi Printed Leather 25115-641 New , Hoka One One W Speedgoat Women's Purple Trail Running Shoes Size 9.5Sketchers Sport Women's Athletic Shoes - SN 11100 - Size 8.5 - Hiking TrainingSKECHERS Women's GO AIR BLACK PINK AIR CUSHIONED GOGA PILLARS SZ 7 NEWMagnanni Voto Slip-On Loafer, Black Color, Size 8 , AHNU MONTARA III BOOT EVENT WILD DOVE LEATHER HIKING WOMENS BOOTS SIZE US 8.5Marc Jacobs White High-Tops & Sneakers Soft Leather Women Size 9US 39EUUnder Armour Women's Threadborne Blur Running Shoe - Choose SZ/color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b - 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.

    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b - 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
    DS Adidas Adi G66431 High EXT GTID GTID Sizes 10-13 Court Adi Purple black glow in dark G66431 661c77b
    Athletic Shoes
    >
    ;