Never miss an update

adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0




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
Authenticity: 100% Authentic Guaranteed
Colour: Red SizeScale: Us Size
Material: Synthetic Shoe Type: Running, Cross Training
MPN: Cg2680 Style: Running, Cross Training
Width: Medium Brand: Adidas
Never miss an update

adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0 - blurrypron.com

    adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0
    adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0
    adidas Galaxy 4 K Blue Volt Yellow Kids Junior Youth Running Shoe Sneaker BY2809New Skechers Go Walk 4 Desired Blk Blk Womens Shoes Casual Sneakers Casual , adidas Energy Cloud WTC W Black Green Women Running Shoes Sneakers BA7529 , New Balance WRT300MS D Wide Beige White Women Casual Shoes Sneakers WRT300MSDAsics GT-2000 5 Pink Orange Women Running Shoes Sneakers Trainers T757N-2001 , New Balance WL520BC B 520 Peach Pink Suede Women Running Shoes Trainer WL520 BCBadidas AlphaBOUNCE EL C Blue White Kids Junior Running Shoes Sneakers B22554adidas Athletics BOUNCE W Black Grey Women Athletics Training Shoes BA7952New Balance WPRSMBW2 D Wide Vazee Prism v2 Black White Yellow Women Running Shoe , Wmns Nike Air Rift BR Breeze Gamma Blue Womens Running Shoes 848386-400New Balance WRL24TH B Purple White Women Running Shoes Sneakers WRL24THBNike Wmns Air Huarache Run / PRM Women Running Shoe Sneakers Pick 1 , adidas ClimaCool Vent CF C Core Black White Kid Junior Running Shoes BD7174New Balance WL520BK B Mesh / Suede Upper Black Beige Women Running Shoe WL520BKB , Adidas Women Shoes Casual Sneakers Fashion VL Court Trainers Running New B42315adidas Duramo Lite W Core Black White Women Running Shoes Sneakers CP8765 , Adidas Originals Superstar Junior Kids' Ladies Sneaker Shoes Shimmer Metallic , adidas Originals X_PLR J Clear Orange White Kid Junior Running Shoes B37818New Skechers Flex Appeal 2.0 Est Navy Womens Shoes Active Sneakers Active , New Balance W1500PG D Wide Red Yellow REVLite Women Running Shoes W1500PGD , adidas Essential Fun II W Real Coral White Women Cross Training Shoes CP8948adidas RapidaRun Knit C Blue Navy White Kid Junior Running Shoes Sneakers AH2591 , Brooks Net-Pivot Netball Shoe (Leather) (795) + Free Delivery , adidas Edge LUX W Womens Running Shoes BOUNCE Sneakers Pick 1adidas FortaRun X CF K CloudFoam Aero Pink White Kid Junior Running Shoes CQ2449 , New Balance WKOZECT1 D Wide Blue Grey Green White Women Running Shoes WKOZECT1Dadidas CloudFoam Refine Adapt Footwear White Women Slip On Running Shoes DB1338 , adidas RapidaRun K Wide Blue White Kids Junior Youth Running Shoe Sneaker CQ0153Wmns Nike Air Max 90 Ultra BR Breathe Grey Orange Women Running Shoes 725061-001 ,
    adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0 - blurrypron.com>adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0 - blurrypron.com
    MERRELL TRAVVY MID WATERPROOF LEATHER BOOTS WOMEN'S 8.5 M RTL $175Jessica Simpson Women's Ceri Ankle Bootie Black 8.5 M US , Miz Mooz Women's Thayer Fashion Boot, Coffee, 36 M US , Ferrini Women's Barbed Wire Western Boot - Square Toe - 8129350 , Saint Laurent Paris Shoes 865397 Green 37NWT: Burberry Jazmine 3991671 Fri Brown Boot Suede Size 6 M , Badgley Mischka Petrina Jeweled D'Orsay Peep Toe Pumps, Platino, 8 US Display , Grace by Miss Sixty Rosy Court Shoes High Heels Sandals Shoes Shoe Wedge Heel 37Marc Fisher Womens Maci Leather Closed Toe Ankle Strap, Dark Blue, Size 8.0 2EXiJ.crew Women’s Bow Loafer flat, Highland Mist, Size 10 NIBSalvatore Ferragamo Vara Black Leather Grosgrain Ribbon Pumps Sz 9 AANine West DAVINIA CANVAS Womens Davinia Canvas Espadrille FlatMSexy Womens 20CM Super High Heel Sandal Pumps Ankle Strap Sequins Clubwear ShoesNew Balance Womens Wtntrlt1 Grey/Black Running Shoes Size 8.5 (38518) , Jack Rogers Womens Lindsey Textile Flat Black Sandals Size 8 NewNIB Auth $420 Prada Leather Slide Sandals; Size 7.5. White colorMens Adidas Originals Top Ten Mid PC Basketball Shoes Size 11.5 Red Gold F37733Rockport Men's Traviss Zip Boot Black 2 LeatherMens Hoka One One Arahi 2 Running Shoes Trainers Black/Charcoal GrayMan's/Woman's Adidas NMD_XR1 - BY9901 sell Excellent performance unique , Men's British Side Zipper Leather Ankle Boot Alligator Pattern Slip On Shoes SzT314 Servus 10" front zip black rubber overshoes galoshes soft lining Men's 8 , Tommy Hilfiger JYLER Shoe - Choose SZ/ColorAntique Teitzel Jones WWI Military Brown Riding Boots Calvary US Size 9M , Mens Pointy Toe Cuban Heel Wedding Dress Party Slip On Leather Loafers ShoesNike Wmns Court Lite Pink Blast Black Women Tennis Dad Shoes Sneakers 845048-600Vero Cuoio Black pointy toe Leather Women Boots size 40 European Made in Italy , Carlos by Carlos Santana Womens santana Closed Toe Mid-Calf Fashion BootsDailyShoes Women's Double Fringe High Top Ankle Booties High Heel Western Cow... , FitFlop Women's Gogh Pro Superlight Medical Profes - Choose SZ/color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    adidas FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0 - 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 FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0 - 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 FortaGym CF K Red Blue CF White Gum Kid Kid FortaGym Junior Training Shoes Sneaker CG2680 54d56d0
    Athletic Shoes
    >
    ;