Never miss an update

Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd




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
Colour: (672) WHITE/SILVER/CHARCOAL/COCKATOO
Material: MESH Shoe Type: CROSS TRAINERS
WIDTH: B STANDARD Brand: Brooks
SIZING: US SIZES
Never miss an update

Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd - blurrypron.com

    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd
    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd
    Women Platform Wedge Leather Sport Sandals High Heel Chic Sneakers Creeper ShoesGentlemen/Ladies Skechers Sport Women's Burst Fashion Sneaker Aesthetic appearance Beautiful Fashion versatile shoesNew Balance Minimus WR00 BC WR00BC Running Shoes Women's - Yellow/White , Adidas Originals Court Vantage Navy White Women Sneakers SizeNew Punk Womens Real Leather Platform Sneakers Wedge Ankle Boots Sport Trainers , 862335-002 Nike Juvenate Se Womens Black/White Style Sneakers , Nike Free OG' 14 BR Women's Shoes Size 11Nike WMNS Lunarglide 7 VII womens running run sneakers NEW chalk blue blackNike Air Max Infuriate II GS 2 Game Royal Blue Kids Women Basketball 943810-400 , Asics Gel Exalt 4 Womens Running Shoes (B) (9693)**SPECIAL** New Balance WKAYMLB1 Womens Running Shoes (D) , MIZUNO SPARK 2 Women's Running Shoes 100% Authentic New K1GA170416 AMerrell Waterpro Maipo Shoes Women's - Adventurine/Purple J65234 9US 6.5EUR , New Womens Reebok WORKOUT PLUS 2760 BLACK US 6.0 - 11.0 TAKSE , MERRELL Vapor Glove 3 J09674 Barefoot Womens Shoes Trail Running Jogging NewASFVLT WOMEN'S SHOES TRAINERS SNEAKERS NEW SPEED ROCKS NEO TRIANGLE BLACK E64Converse Chuck Taylor All Star 3v Ox Womens Black Silver Leather TrainersWomens Mens Grey Yellow Leather Flat Trainer Sneakers Casual outdoor Hot ShoesConverse CT All Star Hi The Simpsons Bartman 142037C Limited , ASICS WOMAN CASUAL FREE TIME SNEAKER SHOES SUEDE CODE GEL-LYTE III H5Z5N , New Adidas Original Womens Stan Smith CF BY2974 BLACK US W 5.0 - 9.0 TAKSENike Dunk Sky Hi Sail Blue Hidden Wedge Runner Shoe Sz 7.5 EXCELLENTMen/Women SUPERSTAR W BLANC OR Practical and economical auction Beautiful and charmingAsics Tiger Womens Gel Lyte V ( 5 ) Trainers Black / White SoleSkechers ~ Women's GO FLEX ~ WALK ~ Low-Top Sneakers/Casual Shoe ~ NAVY/GRAYWOMEN'S/JUNIOR SHOES SNEAKERS NIKE DUALTONE RACER SE (GS) [943575 006]Puma Suede Bow Wns Puma Black White Women Shoes Sneakers 367317-04Puma Ignite Flash EvoKnit Wns Island Whisper Blue Women Running Shoes 190511-07 , Nike Wmns Blazer Low Black White Women Casual Shoes Sneakers BQ0033-001
    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd - blurrypron.com>Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd - blurrypron.com
    Retro Women Leather Strappy Buckle Decor Pull On Mid Calf Boots Casual Shoes New , Reebok Workout Plus Mu Unisex White Orange Leather & Synthetic TrainersShellys London Women's Gabi Ankle Boot, Grey Pinstripe, Size 8.0 US / 6 UK , New NAOT INNOVATE Black Leather size41 9.5/10USNEW $168 Free People Luxe Buckle Western Mules Loafer Size 37 6 6.5 James SmithPleaser ADORE-708G Women's Clear Baby Pink Glitter Platform Ankle Strap Sandals , NEW!! BCBGeneration Hana Black Ruffled Pumps 4" Heels Size 7M US 37M EURLOEFFLER RANDALL BLACK LEATHER SNAKESKIN SMALL LOW HEELS FANCY SANDALS 10 ITALY , Womens PAUL GREEN Pewter Leather Platform Pumps Sz. 7UK , Propet Women's Nami Flat Sandal Gunsmoke/Dusty Taupe Size 10.0 , Gianvito Rossi Shoe Black Three Buckle Straps Size 40 1/2New Balance Women's 530v2 Flex Ride Running ShoeEastland Women's Kelley Woven Slide , Nike Men's Free RN Running Shoes Style 831508-003 , Nike Free RN Heritage Cyan/Laser Orange-Black-Blue Spark 831508-402 Men'sPUMA SELECT SUEDE CLASSIC 50th limited edition PARIS , NIKE Alpha Field General Elite 3 Green Lime White TD Football Cleats New Mens 14 , adidas Originals Pro Model Men's White/White/White B27450NWB Minnetonka 4011 Natural Moosehide Moccasin Men's 7.5 , Fashion Mens Casual Heeled Chunky Pointed Toe Buckle Prom Dress Formal Shoes NewHanover Cordovan Color Wingtip Tassel Leather Loafers Shoes 8.5 D/B made in USAJARLIF Women's Breathable Fashion Walking Sneakers Lightweight Athletic Tenni... , Women's Shoes Prada 3P3354 Fashion Sneakers Double Strap Leather Size 37 EU , Men's/Women's GEL LYTE III W GRIS Fine workmanship Cheaper than the price Selling new products2018 WMNS Nike Air Jordan 1 Retro High SOH SZ 9.5 Hydrogen Blue OG AO1847-445VINTAGE Aldo Women's Maracle Sherpa Lined Ankle Boot with Heel in Brown, Size 38 , Stuart Weitzman Nicky Cola Brown Zipper High Heel Calf Boots Sz 10M Msrp $410 , MJUS OLIVE GREEN LEATHER WEDGE BOOTS SZ EURO 38 U.S. SIZE 7 M , New Womens Ankle Boots Stilettos Heels Clubwear Pointy Toe Shoes Booties Chic , Sesto Meucci Nubuck Leather Open Toe Slip-on Shoes - Evonne Black med 6.5 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd - 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.

    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd - 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
    Brooks Liberty 6 VALUE Womens POSTAGE Cross Trainers Brooks (672) GREAT VALUE RRP $160 + FREE POSTAGE 29816bd
    Athletic Shoes
    >
    ;