Never miss an update

New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e




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
Style: Running, Cross Training
Color: Black / Metallic Gold Material: Synthetic Leather
Brand: New Balance Width: Medium (B, M)
Never miss an update

New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e - blurrypron.com

    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e
    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e
    Adidas Pure Boost X Womens AQ3399 Running Shoes. Size 9Puma Muse Echo New School Women's Leather Cage IMEVA Dance Fashion SneakersWomens Altra Lone Peak 3.5 Running Shoes, Size 7NEW WOMENS NIKE SHOX GRAVITY SNEAKERS AQ8554 105 MULTIPLE SIZESadidas WOMEN'S ORIGINALS EQT SUPPORT ADV SHOES - BY9110Nike Air Zoom Vomero 13 Women's Running Shoes (Size 7) Ocean Bliss 922909-401Nike Womens Air Max 90 ultra 2.0 Breathe Size 8.5 NIB , ADIDAS SPRINGBLADE DRIVE W PINK ROSE BLACK women RUNNING SIZE 9.5 C75669 - NEWASICS Metrolyte II Shoe Women's Walking black-Q850N.9093NEW Adidas Womens Swift Run Shoe Originals Black Gold Mesh White CQ2018NEW Nike Air Max 90 Premium Womens 7.5 Wolf Grey Leather Sail Sneaker 443817-011 , Nike Womens Air Force 1 High Premium White Red 344080-111 Size 6.5 Retail $129 , New Nike Air Max 1 Premium SC Run Women Size 7 Shoe Black Metallic Silver Jewel , NIKE LUNAREPIC FK SHIELD GYAKUSOU SIZE 5.5-9 WOMEN'S SNEAKERS SHOES (859890 300)NEW IN BOX WOMENS BROOKS RAVENNA 7 RUNNING SHOES SIZE 6 SMOKEPEARL PARADISE PINK , New Balance Womens (WL574CIE) Shattered Pearl (Black / Magnet Grey) Wmns 6-10Adidas Women’s Athletic Sneakers Questar Drive Running Shoes 100% Authentic , Womens Nike Dunk Sky Hi Shoes 528899 014 Black/Purple Pre-owned SZ 8.5Nike Women's Air Max Zero NEW AUTHENTIC Shoes Black/White 857661-002ADIDAS ORIIGNALS SUPERSTAR BW3S SLIPON WOMEN'S CASUAL SHOES GREY CQ2520Nike Flyknit Zoom Fit Agility Women Size 9 Trainer Purple Green 698616-501 $150Womens Nike Air Huarache Ultra Classic Sneakers New, Navy Blue 859511-400 sku AANike Zoom All Out Low 2 Women's AJ0036 101 White Running Shoes , Womens Nike Free TR 7 Selfie Running Shoes Size 6.5 Black Silver Grey AH5734 001Man/Woman APL women's shoes size 10 Fine workmanship special function Complete specifications , Womens New Balance Minimus LIME GREEN Size 10 gray barefoot minimalist trainer B , Men/Women Travel in these High Top Kicks Reasonable price online shop Full range of specificationsNew Balance Women's Wc786 Ankle-High Tennis Shoe , Nike Women's Lunarstelos Running Trainer Blue Black Shoes Size 9.5 844736-402
    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e - blurrypron.com>New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e - blurrypron.com
    Asics GEL-Kenun Lyte [T830N-0196] Men Running Shoes White/Glacier Grey , Man/Woman Dolce Vita Women's Caillin Ankle Bootie Various styles Good market Easy life , Pleaser KISS-254 Platforms Exotic Dancing Black Patent Ankle Strap High Heels , NEW MELISSA Queen Wedge Ad 31624 Beige/Red 51657 SHOES WOMEN BLACK BEIGE 8 , Hades Zetta High Heel Black Punk Rock Metal Spine Goth SpikesLucky Brand Black Wekka Fringe Flat Sandals, Size 9.5M, Retail $69Womens T-Strap Open Toe Stiletto Sandals Casual Shoes Open Toe T Show NightclubNike Blazer Mid Premium Vintage Men's Sneakers Shoes Gym Red 638261-601 , Onitsuka Tiger By Asics Men's Sneakers Colorado Eighty-Five Spice Route Mid Grey , HYPERDUNK 08 PHOTO BLUE MEN SIZE 10.5 NEW RARE PREMIUM BASKETBALL AUTHENTIC , Nike SB Mogan 2 OMS Black Mens Size 10 DS NEW! Skateboarding 536357-030 Dunk , Nike Kyrie Flytrap Mens AA7071-011 Black Thunder Grey Basketball Shoes Size 9.5 , Nike Air Max Axis PREM [AA2148-001] Men Casual Shoes Camo Black/Light Bone , Mens Adidas NMD_XR1 - BA7231 - Black White Trainersadidas yeezy boost 350 v2 beluga 1.0 Size 9.5 100% authenticLUCCHESE CLASSICS Men's SLIP-ON LEATHER COWBOY WESTERN BOOTS Espresso 9.5C , SEDONA Black Leather Cowboy Work Boots Mens Size 10 M , Puma Tsugi Shinsei Raw 36375802 Peacoat Whisper White Knitted Mesh Shoes MenClarks 'Ashmont Way' Men's Black Leather Slip-On LoaferKrystalSB Boy London Korea Made Mens Dubby Loafers Wedding Dress Shoes US7~10 , Mens Cole Haan 03508 Pinch Tassel Dress Formal Moc Toe Loafers Size US 12DMens High Top Genuine Leather Sandals Beach Thong Gladiator Vintage Shoes NewNew Balance 515 Womens Classics Sneakers WL515POA Lake Blue Shoe Size 5.5 BMen's/Women's Pleaser Women's Electra 2020 Black Patent Economical and practical modern Outstanding functionNatural Soul by Naturalizer Womens Kariano Ankle Booties 8.5 M Black , Sam Edelman Louie Beige Womens Shoes Size 9.5 M Boots MSRP $150Skechers Sport Women's Synergy 2.0 Wide Fashion Sn - Choose SZ/colorWOMENS JIMMY CHOO GRAY SNAKE PRINT LEATHER WEDGE BOOTIES - SZ 38/ US 8Sam Edelman Adele Women's Fashion Ankle Leather Boots Studded Booties Brown , ECCO Women's Sense Toggle Fashion Sneaker - Choose SZ/color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e - 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.

    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e - 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
    New Balance Womens Gold) (Black (WL574URC) Metallic Dip Pack (Black Womens/ Metallic Gold) c01a52e
    Athletic Shoes
    >
    ;