Never miss an update

Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306




Item specifics

Condition:
New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Shoe Type: Athletic
Colour: Grey Brand: adidas
Size: 13
Never miss an update

Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306 - blurrypron.com

    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306
    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306
    Man/Woman NMD Blackout DS Size 7.5 Rich design Price reduction Superb craftsmanshipMens Hoka One One Speed Instinct 2 - Black / Kumquat , Salomon - Speedcross Pro 2 Trail Running Shoes - Black/Barbados Cherry/BlackNike Air Jordan Trainer 1 (Cool Grey/Black-Infrared) US10 Brand NewEWING 33 ROGUE men US 10.5 basketball/fashion/collection sneakers Original , FW13 ASICS ONITSUKA TIGER FABRE NR 46 MID SHOES WALKING UNISEX FASHION BOOT , Salomon - Speedcross 4 GTX Trail Running Shoe - Navy Blazer/Cloisonne/FlameAsics Mens Gel Nimbus 20 Island Blue/White/Black T800N 4101 , Gentleman/Lady Nike Tiempo ‘94 Mid Ideal gift for all occasions Pleasant appearance Very good classification , SAVE $70!!! Brooks Transcend 3 Mens Running Shoe (D) (408) , Adidas NMD_XR1 Core Black Duck Camo White BA7231 NMD XR1 NEW SIZE 9.5 , NR 46 ADIDAS GAZELLE SUEDE SUEDE BLUE COBALT Q23175 , T700N.9693 | ASICS MENS GEL-NIMBUS 19 US 11.5 RRP $240 - FREE AUS SHIPPINGGentlemen/Ladies TOPO MT-2 - Mens Diverse new design Won highly appreciated and widely trusted at home and abroad Excellent workmanship , FW13 ASICS ONITSUKA TIGER FABRE NR. 38 MID SHOES WALKING UNISEX FASHION BOOT , Brooks DEFYANCE 9 Mens Sports Atherletic Running Shoe FRRE postage , Man's/Woman's LEBRON XI SOUTH BEACH Easy to clean surface the most economical Highly appreciated and widely trusted in and outMan/Woman Kyrie 1 'Wolf Grey' Size 12 High-quality Strong value cheaperAdidas Ultra Boost 3.0 Triple White US12.5 , Man/Woman TOPO ULTRAFLY MENS Beautiful design Beautiful appearance Elegant and stable packaging , Asics - Men's Gel Kayano 24 - Black/Phantom/White , NR.44 NIKE BLAZER MAN MID PREMIUM LEATHER SHOES LEATHER 538282 302Brooks - Glycerin 14 Running Shoe - Peacoat Navy/Ture Red/White , NIKE LEBRON SOLDIER  11 - MEN'S  (SIZE 10)Brand New Genuine ADIDAS Ultra Boost Uncaged 4.0 Mens, AUS Stock DA9165 , Adidas Harden Vol 2 Traffic Jam US SZ 9Air Jordan 9 'Copper Statue / Militia Green' US9.5 PADS 100% AuthenticAdidas Consortium Solebox Packer Ultra Boost Mid UK10 US10.5New Lacoste Mens Esparre Winter C 318 3 Shoes In Black Smart Casual
    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306 - blurrypron.com>Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306 - blurrypron.com
    Dr Martens Women's Delphine 8 Eye Brogue Boots - Cherry Red , Aerosoles Women's Hole Fame Mid Calf Boot, Black Leather, 5.5 M US , Lane Women's Conchita Western Boot - Snip Toe - LB0311B , FRACAP ITALY - MENS HIKING BOOTS 'M120' model- SIZE 43EU- 100% BNIB -100%AUTH , MIZUNO MENS WAVE RIDER 21 BLUE BLACK YELLOW RUNNING SHOES 2018 **FREE POST AUST , Mizuno - Men's Wave Sky - Iron Gate/Chinese RedAQUARAPID SLIPPER BAND LOGO - F FUCHSIA - 39 (8004298440328)Salvatore Ferragamo WMNS Kitten Heel Mules Sz 81/2 B Black Leather Shoes Slip OnQupid Women's Beat-44 Platform Sandal - Choose SZ/ColorNINA FOOTWEAR Jinjer Women Platform Wedge SandalSexy Womens Knit Weave Wedge High Heels platform Buckle Ankle Strap Shoes Newadidas Women's Crazytrain Pro W Cross Trainer - Choose SZ/Coloradidas ClimaChill Sonic - Orange - MensNike Dual Tone Racer Men's Size 11 Blue New in box never wornVANS OLD SKOOL (CANVAS) BLACK/TRUE WHITE VN000ZDF1WX MEN US SZ 9.5 , Adidas Tubular Instinct Black/Black-Grey S80082 Men's SZ 6.5 , Gentleman/Lady adidas Deerupt Solar Red Bluebird flagship store Year-end sale King of the crowd , Caterpillar P90640 Chromatic Composit Dark Shadow/Blue - 10.5 Medium5.11 TACTICAL ATAC SIDE-ZIP LIGHTWEIGHT BOOTS 12001 * NEW , Kenneth Cole Unlisted Men's To Be Bold N1 Boat Shoe Black 10 M US , Unisex Maison Margiela Future Leather Ankle-Strap Sneakers Size 6 MenTravel Fox sneakers 8.5 vintage 80's 90's high-tops leather color block shoes , Reptile Canvas Shoes, High Low Women Men Lizard Snake Bearded Dragon Ball PythonNike City Trainer 909013-014 Womens Training Running Shoes grey & volt size 10 , ASICS Running Shoes LADY GEL-KAYANO24 TJG758 Soft Gray US7(24cm) , Jeffrey Campbell Lo-Fi Off White Oversized Dad Architectural Platform Sneaker , OluKai Women's Kulapa Kai Flip Flop Bougainvillea/BlackAdidas X Stella McCartney Pure Boost X Bright Red/Sulfur Womens Shoes BY1969 ... , Nike Dunk Sky Hi Essential - CHOOSE SIZE - 644877-011 Wedge Sail White Gum BlackWomens Nike Shox Avenue Sneakers New, Grey / Purple / Ice Blue 844131-002 6.5 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306 - 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.

    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306 - 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
    Adidas Alexander Mid Wang AW Run Mid Rag Adidas Rag Sneakers Grey Size 13 29aa306
    Athletic Shoes
    >
    ;