Never miss an update

Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3




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: Blundstone
Colour: BLACK Shoe Type: Steel Cap
MPN: 990100/990105/990110/990120 Material: leather
Never miss an update

Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3 - blurrypron.com

    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3
    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3
    5.11 Tactical Men's EVO 8" Waterproof Side Zipper Black Work BootsEuro Vogue Mens Winter Suede Leather Cowboy Knee High Boots Black Shoes LuxuryBoulet Men's Outback Exclusive Black Cutter Toe Cowboy Boots 2155XCaterpillar Men's Drover Ice+ Waterproof Tx Winter Boot - Choose SZ/ColorThorogood Wildland Fire Fighting Boots - Size 13 Wide (Excellent)ROCKY BEARCLAW 3D 200G INSULATED G-TEX OUTDOOR BOOTS FQ0009237 * ALL SIZES - NEWThorogood Waterproof Wedge Sole Ironworker American Union Made Boots 814-3600 , Lowa Mens Renegade LL Mid Boots 310845 0442 Espresso Size 9.5 , Rockport Mens Cold Springs Plus Mocc Toe Boot - High 7- Pick SZ/Color.Danner Men's Mountain 600 Full Grain Hiking Boot - Choose SZ/Color$230 OVATTO Blue Calf Leather Ankle Boots Men Shoes NEW COLLECTIONMan/Woman Double H Boots DH1502 Men's Selling Ranked first in its class Speed ​​refund$850 Prada 7.5 Men Desert Boots Light Beige Classic Casual Suede ShoesThorogood 804-4205 American Heritage Wedges Safety Toe Wellington Work Boot , Mobils Ergonomic By Mephisto Mens Trenton GT Boot Shoes, Dark Brown, US 8LOS ALTOS MEN BLACK GENUINE COBRA SNAKE COWBOY J-TOE BOOTForma Adventure Low Black Mens Performance Motorcycle Boots New , NEW in Box Mens DANNER 32656 Forest Heights II LeatherBlack Boots Size 11 EEMagnum 5870 Mens Stealth Force 8.0 Side Zip Waterproof I-Shield Military andSolovair NPS Southerner Made in England Cherry Red Steel Toe Boots Punk SkinheadNew Rock Style M.654-S1 Mens Ankle Boots (Black)Dan Post Boots Men's Tyree DP26680 Chocolate Rustic Saddle Brand Leather Size , Thorogood 804-4711 American Heritage Static Dissipative 6" Sport Safety Toe BootNIB Elia Maurizi Wrinkled Vamp Suede Zip Chelsea Boots (Made in Italy) RRP $550 , FRYE Mens Sam Harness Boot D US- Pick SZ/Color.Tony Lama Men's SEALY BROWN Cowboy Boot Square Toe - TL3001 , VINTAGE FLORSHEIM IMPERIAL FASHION BROWN MONK STRAP ANKLE BOOTS MEN SIZE 14 AHUNTER GREGG ESPRESSO MEN BOOTS us $199 , Bota Vaquera Exótico/a El General Piel Anguila Negro ID 9296
    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3 - blurrypron.com>Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3 - blurrypron.com
    FRYE 78509 Womens Natalie Mid Engineer Boot- 8.5 Charcoal Black/Brown NWT in Box , Mr/Ms Pajar Canada Womens Franka Eldorado service delicate Authentic guarantee , New Balance MRT580EB D Black Grey Running Shoes Lifestyle Sneakers MRT580EBDwomen's shoes EDDY DANIELE 7 () flats black suede AX904Puma Insurge Mesh Low-Top Sneakers White-Gray Violet, 4 UKDIANE VON FURSTENBERG DVP Womens Black "Furry" Ballet Flats Size 8.5M-B95Givenchy Elegant Studded Flat Sandal, Black Size 37.5 MSRP: $850STUART WEITZMAN NEW AUTH $399 Women Black Suede Leather Settle Pump Shoes Sz 5MPrada Thong Flip Flop Logo Patent Leather Beige Size 6/36 NIB , REEBOK RAYEN 2 Black Gold Gum MENS BS9017 NEW , ADIDAS ORIGINALS EQT BASKETBALL ADV SZ 10.5 CLOUD WHITE TRACE SCARLETT CQ2992 , Mens Nike Dunk High ANTHRACITE 317982-031 Basketball shoes size 13 , Men's/Women's Dunham Men's Bryce Brown Smooth Easy to clean surface First quality a wide variety of goods , New Nike Zoom UPtempo V retro Mens sz 11 DS Kidd 324558-161 vintage max B , Nike Dunk High Brazil SB CO JP (Size 10)Gel net burner ballistic LO 30.0cm TVR479 from japan (6224New Mens outdoors fur lined Warm snow Slip On Thicken mid calf boot casual ShoesLugz Women's Empire Hi Wr Winter Boot Black 9 M US , Faconnable Adolfo Brown Suede Chukka Boots - Sz 14Man/Woman Lacoste Men's Straightset - Choose SZ/Color Excellent craft Stylish and charming Popular recommendation , PUMA MAN SNEAKER SHOES CASUAL FREE TIME SUEDE CODE 360101 BLAZE OF GLORY SOFTMens Sequins Rainbow Bling Pearls Dress Wingtip Formal Real Leather Shoes Ths01 , Converse Chuck Taylor All Star Shroud High Top Sneakers 553262C Size 7 , NIB Women Puma Muse Echo Fashion Sneakers Sz 8 Shoe Rock Ridge Gray 36644702 New , Reebok Women CN2407 Astro Ride Flex Training Shoes black white silver Sneakers , Womens Suede Color Matching Square Toe Back Zipper Mid Calf Boots Casual ShoesEUC Frye Jillian Pull On Riding Boot 10Marc Fisher Womens Wilde Leather Cap Toe Ankle Fashion BootsHarley-Davidson 81756 Black Cancun Biker Western Boots Women's 8 EUC Retail $180A&N Girls Multilayer Metal Strap Platform Chunky Heels Red Imitated Leather - BM
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3 - 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.

    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3 - 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
    Blundstone SAFETY Or BOOTS 990 Steel Cap Brand-Size BLACK*AUS Brand-Size SAFETY US 10,10.5, 11 Or 12 ecb8fa3
    Boots
    >
    ;