Never miss an update

Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd




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 Size: Various
Upper Material: Leather And Synthetic Brand: Rieker
Sole: Synthetic Main Colour: Various
Width: Various Fastening: Zip
Never miss an update

Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd - blurrypron.com

    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd
    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd
    Ladies Spot On Long Boots Style - F50488Ladies Clarks Pull On Smart Casual Ankle Boots Carlita Quinn , Ladies Leather Collection Mid Heel Slouch Boots Style - F50659 - DMr/Ms Ladies Remonte Boots M1397-W High quality and cheap product quality Selling new products , Ladies Down To Earth Ankle Boots Style - F5R0940 , 'Ladies Spot On' Tapered Toe Over The Knee Boots - F5R0764 , Ladies Clarks Casual Boots Style - Breccan Myth , Men's/Women's Ladies Clarks Casual Boots Breccan Myth Economical and practical High-quality materials British temperament , Ladies Clarks Smart Mid Calf Boots Label - Lodge Cottage , Ladies Taurus Jodpur Boots The Style Rutland-W , Ladies Remonte Heeled Shoes Style D1210 -WMan/Woman Womens Caterpillar Boots Annette Ideal gift for all occasions Pleasant appearance Extreme speed logistics , Ladies Down To Earth Zip Up Fur Trim Calf Boots , Man/Woman Ladies Anne Michelle Sequin Boots F50875 Online Shopping Brand Authentic guarantee , Ladies Clarks 'Macay Holly' Boots The Style ~ KLadies Clarks Casual Flat Mid Calf Boots The Style - Nettle TeaLadies Easy B 'Adelaide' Leather Wide Fitting Boots Style ~ K , Ladies Clarks 'Kilv Double' Boots The Style ~ KLadies Clarks Lisette Blues Leather Warm Lined Smart Ankle Boots D FittingLadies Down To Earth Casual Flat Chelsea Ankle BootsGentleman/Lady Ladies Clarks Boots Label Orinoco Prize Selling cheapest Speed ​​refund , Ladies Clarks Leather ankle Boots The Style Medora Grace ~ N , Men's/Women's Ladies Khrio Ankle Boots 27146RNN Quality products Pleasant appearance Recommended today , LADIES WOMENS DENIM OVER THE KNEE PEEP TOE RIPPED SEXY BOOTS SIZE 3 4 5 6 7 8 9Ladies Spot On Knee High Heeled Boot *50366*'Ladies Down To Earth' Fur Collar Ankle Boots F5R0865 , Gentlemen/Ladies Ladies Khrio Ankle Boots Label 27146RNN Wear resistant auction high quality productLadies Down To Earth F50799 Suede Boots Style ~ KLadies Clarks Ankle Boots Label - Lolly Dawson ,
    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd - blurrypron.com>Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd - blurrypron.com
    Women Fitflop Mukluk Shorty II Boot I91-047 Chestnut Suede 100% Original B New , Nike Free Hypervenom Mid, size 44EU, 10US , Cole Haan Womens 2.ZeroGrand Laser Wing Oxford Shoes , Women's Liebeskind Brown Leather Flats Size 9 M NEW , New Django & Juliette Juzz Rose Gold Womens Shoes Casual Sandals Sandals FlatKenneth Cole Reaction Women's Just Enough Slide Storm Polyurethane SlidesBlack Glitter Upper High Heel Platform Ankle Strap Stiletto Sandal Womens ShoesAuth. Prada Calzature Donna Vernice Sfumata Black/Gray Heels Shoes, 38.5, 8.5 , Gentlemen/Ladies Splendid Women's Blake Sandal selling price a good reputation in the world International big nameSkechers Sport Women's Gratis Bungee Fashion SneakerNine West Womens Jabrina Metallic Wedge Sandal- Pick SZ/Color.NEW BALANCE Women's Black/Purple Running Shoes w/Mesh Uppers Sz. 6 B NIBNew Balance Numeric Brighton 345 (Grey/Black) Men's Skate ShoesNIKE AIR FOOTSCAPE WOVEN NM WOLF GREY BLACK WHITE RUNNING 875797 004 SZ 11.5 , ThirtyTwo Men 86 Ft Snowboard Boots (9) Red , Jordan 5 V Red Suede 136027 602 NO BOX Size 15Nautilus Men's N4041 Soft Toe ESD Athletic Work Shoe White Water ResistantMen's Clarks Original Desert Mali Boot Brown Beeswax Leather Size 8 Medium , Georgia Boot Giant Work Boot - Brown - Mens , Dr Martens 1460Z Smooth Leather Boots Navy Blue UK9Florsheim Designer Collection White Leather Wingtip Tassel Loafers Sz 9DBlack Mens Pointed Toe Slip On Carved Retro Casual Bussiness Shoes British StyleBZ887 KEP'S by CORAF shoes blue leather men elegant EUMens Leather Floral Toe Pointed Cuban Dress Wedding Formal Shoes Pump Size 5-12NATURALIZER WOMENS NIB MARIANNE SZ. 9 1/2 WIDE SLIP-ON SNEAKERS BORDO LEATHERBellini Women's Dapper Fringe Loafer Navy Patent/Microsuede LoafersDrew Women's Tulip Bone Full Grain Leather , Womens Over Knee Thigh High Boots Patent Leather Pull On Slim Heels Shoes Lit01Womens Winter Fur Furry Metal Decor Wedge High Heels Platform Shoes Ankle BootsSkechers Women's Parallel Peep Toe Ghillie Slingba - Choose SZ/color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd - 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.

    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd - 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
    Ladies mogochinese-29999 Rieker Rieker Ankle The Boots The Style - Z7664 1daa7bd
    Boots
    >
    ;