Never miss an update

Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9




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
Brand: Nike
Shoe Size: Varied Manufacturer: Nike
MPN: Does not apply
Never miss an update

Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9 - blurrypron.com

    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9
    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9
    Reebok Zoku Runner ULTK Gum UltraKnit Black Men Running Shoes Sneakers BD5481Nike SB Check Solar Skate Shoes Mens Black/White Casual Trainers SneakersConverse BO-158964C_MOREL_BUNGEE_CORD_WHITE_DUST sneaker Men's - colour Grey AUReebok Speed TR Flexweave Black White Men Cross Training Shoes Sneakers CN5500 , Versace 19.69 V509 TOKYO GRIGIO CAM GRIGIO sneaker Men's Grey AUadidas Tubular Doom Shoes White Men BA7554New Balance NB MCOASAP2 D 2016 Lightweight Lifestyle Running Shoes White/Black , Mens Reebok Z quick Light Running Trainer - V60323 - Yellow TrainersAdidas SWIFT RUN CG4110 Black mod. CG4110 , New Balance NB MCOASHB3 2E 2017 Lightweight Lifestyle Running Shoes Black/White , Reebok Fusium Run Lightweight Training Running Shoes Black/Coal/White CN2431Bayliss Lacoste Shoes Fashion Red Men NewJamyson Steve Madden Shoes Leather Brown Men New[bargain] Asics Piranha SP 5 Mens Running Shoe (D) (0793) | NEW!NIKE DOWNSHIFTER 6 WHITE BLUE MENS RUNNING SHOES US 14 ** FREE POST AUSTRALIAMizuno Sport Style Synchro MX 2 Black Grey Men Running Shoes Sneaker J1GE17-1949 , Merrell 1Six8 Mesh Blue Grey Men Outdoors Casual Shoes Sneakers Trainers ML91353Nike Lunarstelos Mens Running Shoe (D) (001) + Free AUS Delivery! , Puma BMW Men's Sneakers Shoes Motorsport Trainers Sport Shoes Top New , Converse Chuck Taylor ONE STAR LO PRO HI Sneakers trainers Men's Women's Shoes , MENS PUMA BLAZE IGNITE MEN'S SUEDE RUNNING/SNEAKERS/TRAINING/TRAINERS SHOES , Reebok Fusium Run Navy White Black Men Running Training Shoes Sneakers CN2926Saucony Guide 8 Men's Runner (S202562) WAS $199.95 , Reebok Zoku Runner SC White Men Running Shoes Sneakers Trainers BS9686**Special** Brooks Liberty 8 Mens Running Shoes (D) (033) + Free Aus Delivery , Nike Run Swift Grey Team Red Mens Running Shoes Athletic Trainer 908989-012 , ASICS MAN SPORTS SNEAKER SHOES SYNTHETIC AND SUEDE CODE GEL-LYTE III H5U3LNike Hyperchase PRM EP Basketball Shoes Black/Metallic Silver-White 806797-001MENS SALOMON VESPERA CS WP MEN'S RUNNING/SNEAKER/FITNESS/TRAINING/WALKING SHOES ,
    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9 - blurrypron.com>Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9 - blurrypron.com
    Womens Snake Leather Over Knee Boots Stilettos High Heel Shoes Plus Sz Zsell , Womens Black Leather Tall High Stilleto Heels Knee High Boots Platform New , CATERPILLAR CAT 'STREAMLINE' MENS BLACK COMPOSITE TOE CAP WORK SHOE , Nike Zoom Span 2 Mens Running Trainers 908990 Sneakers Shoes 006 , Bona Fide Brooks Transcend 4 Mens Running Shoe (D) (081)BNWT Stuart Weitzman Womens Black Suede Subside High Heel Boots US Size 8.5M (UKHelle Comfort Size US 6 M Saki Black Slip On Loafers New Womens ShoesWomens Flat Leather Mary Janes Retro Slip on Casual European Strappy Pump Shoes , Gentleman/Lady Sam Edelman Women's Addison Heeled Sandal superior Win the praise of customers Clearance sale , Women Mary Jane Round Toe Chunky Flower Heels Lolita Cosplay Weeding Shoes SizesStuart Weitzman Women's Histrung Wedge Sandal, Black, 8.5 M US , KENDALL + KYLIE GIAA5 Women Strappy Sandals (7 M, DARK BLUE)Gentleman/Lady Donald Pliner Jelly Bondi Sandals Great variety a good reputation in the world Maintenance capability , CHRISTIAN LOUBOUTIN Strass Crystal Super Vic Pigalle So Kate Pump 38 $4595 NIBMan/Woman Puma Fierce Strap Training Women's Shoes High quality and cheap auction Strong heat and heat resistance , Swedish Hasbeens swedish hasbeens Womens Lacy Platform Sandal- Pick SZ/Color. , Laura Bellariva 1500 Bronze Leather Platform Slingback Sandal 38.5 / US 8.5Adidas Superstar Decon Athletic Women's Shoes Size 9Mizuno Men's Wave Tornado 9 Ankle-High Racquetball ShoeNike Mens Air Jordan Jumpman Team II Sneakers White / Blue 819175-107 Size13Men's AIR JORDAN XXXI 845037-007 Black Royal White 31 848629-007 Size 7DS NIKE 1995 OG VINTAGE JORDAN XI CONCORD SAMPLE 18 PE I III IV V VI XII XIII IIMarina Militare Fashion Sneakers Rare New/Box 44 Euro $285Asics T6C8N GEL Cumulus 18 Running Training Shoes Sneakers Blue Aqua Womens 6.5ADIDAS Women PURE BOOST Trainers Black Silver Reflective AQ4596 Size 6 , NIKE WOMEN'S W ROSHE TWO 2 FLYKNIT 844929-001 BLACK WHITE COOL GREY DS SIZE: 6 , Skechers Sport 12773 Womens Flex Appeal 2.0 Bold Move Fashion SneakerBaskets model 94397 Inello - Matter - Shoes , Naturalizer Women's Trust Boot Brown 8 N US , ECCO Womens Bluma Toggle Sneaker - Choose SZ/color ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9 - 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.

    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9 - 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
    Nike Court Royale Trainers 29180 Mens Black/White Sports Sports Nike Shoes Sneakers Footwear 586fea9
    Athletic Shoes
    >
    ;