Never miss an update

Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0




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: Adidas
Style: Running, Cross Training
Never miss an update

Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0 - blurrypron.com

    Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0
    Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0
    Nike Men's Air Max 90 Premium Se Running ShoeNike Lebron Soldier XI Men's basketball shoes 897644 103 Multiple sizes , Nike AIR JORDAN 1 RETRO HIGH PREMIUM 3M REFLECTIVE CAMO SZ 13 AA3993 NIB , ASICS Men's HyperGEL-SAI Running ShoeNike Air Jordan XIII 13 Retro Black Altitude Green 414571-002 Size 12 UsedAdidas Duramo 9 [BB6910] Men Running Shoes Navy/Blue , New Nike Men's AIR JORDAN TRUNNER LX HIGH Shoes Black AA1347-010 BootsNEW MEN'S NIKE AIR JORDAN FLOW BASKETBALL SHOES TRIPLE BLACK 833969 010 , Adidas Originals Los Angeles Men's Trainers LA Shoes BA8416 Black , Nike Fl-Rue Mens Running Trainers 896173 Sneakers Shoes 002NEW Nike Air Force 180 OG Black Sport Royal 310095-011 Size 10.5 100% Authentic , Vans Old Skool Maroon White Mens Suede Skate Trainers , New NIKE Air Max 90 Essential Pixel Mens green pink pixel sneaker all sizes , NEW NIKE FREE TRAINER 5.0 MENS LIGHTWEIGHT CUSHIONED RUNNING SPORT SHOES , Nike Air Trainer 1 Mid Men’s Basketball Shoes 317554 006 Gray Red Black Size 9Nike Lebron XIII mens trainers sneakers basketball shoes 807219 007 NEW+BOXNike Zoom Ultra React HC Size 10 Green Grey Tennis Shoes Sneakers 859719-002 , BROOKS RAVENNA 7 MENS RUNNING SHOE (2E) (116) save $80!!! , Mens ADIDAS SUPERSTAR MGSOGR Textile Leather Trainers AQ3049Nike Air Max 90 HYP PRM mens shoes new 454446 370Men's/Women's Adidas ZX Flux BB2181 Men's Sneakers Outstanding features Win highly appreciated Comfortable and natural , Brooks PureCadence 5 074 Mens Running ShoesNIKE AIR FORCE 1 LOW '07 315122 070 WOLF GREY/DARK GREY-GAME ROYAL BLUE-WHITEMizuno Gate Sky [71GA174005] Men Badminton Shoes Wide Black/WhiteHUF Dylan Slip-On (White/Black) Men's Skate Shoes , Nike Incursion Mid SE Men's Sneaker Shoes Black/Black 916764-003Adidas mens size 4.5 Chalk white in BoxNike Air Jordan 1 Retro Hi Flyknit FK Men / Women / Kids BG AJ1 Shoes Pick 1FILA 2018 VOLANTE 98 WHITE/NAVY-RED FS1HTA3061X UNISEX SHOES US SZ 4-11 ,
    Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0 - blurrypron.com>Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0 - blurrypron.com
    Womens Sexy Patent Leather Zip Stilettos Heels Over Knee Thigh Boots Shoes US 8 , Gola Men s Ridgerunner High CC Low-Top Sneakers Black Size 10 , Le Coq Sportif Womens Dynacomf W Feminine MeshMetallic Trainers, Orange PapayScholl Orthaheel Acapulco Womens Comfort Orthotic Friendly SandalsFRYE Women's Regina Ballet Flat - Choose SZ/ColorBella Vita Women's Ros-Italy Slide Gold Italian Leather SlidesStuart Weitzman Women's Shoes Sz Us 7/Eur38 Black Leather Pointed Toe Pump Heels , Schutz Fulvia Heel MINT Navy Green Blue colorblocked Zipper Heels Boot Bootie , Women's Shoes Fiori Francesi Pink Heeled Mule Spring Summer 2018 , VIKTOR & ROLF $995 woman pony hair leather booties shoes size 36 Made in ItalyStuart Weitzman Sleek Heel - Women's Size 7.5M Black , Mr/Ms FRYE Corrina Whipstitch Wedges, Sz 9 Cheap Skilled manufacturing King of the crowdNew Nike Lebron Soldier IX 9 TB, Men Size 16.5, Blue/White, 813264-441Mens Nike Lunarforce 1 Flyknit Workboot SZ 9.5  HU HOLI 855984-600Five Ten Access Mesh Sneakers - Men's Size 10 - GreyNike KD 8 VIII BLACKOUT Triple Black Cool Grey Dark Gray All Star Size 5.5 , Under Armour Horizon Str Mens 1288967-408 Blue Steel Trail Running Shoes Sz 10.5Mens Round Toe Flat Slip On Loafers Fashion Casual Driving Shoes Moccasin-Gommin , Converse Mens Size 10 Chuck Taylor All Star Hi Top Year Of The Snake Skin Red , Mens Rivets Spike Slip On Pointed Toe Round Toe Loafers Oxford Fashion Shoes , Skechers Work Men's Ossun - Onley Black Mesh 9.5 D US , Salomon Crossamphibian Swift Womens Water Sports Shoes Sandals Summer Trainers , Sperry Top-Sider Women's Seaside Fashion Sneaker Navy 8 M USMen's/Women's Pleaser Women's Electra 2020 White Patent Comfortable feeling New products in 2018 Excellent function , Puma Basket Platform Womens Black White Gold Trainers Shoes Size 4-8PUMA Basket Heart Bauble Women's Silver 36480901 , PUMA Womens Ignite Dual Prism Wns Running Shoe- Pick SZ/Color.Chic New Women Men Sneakers Grey Yellow Hottest Leather Speed Trainer Shoes Flat , Smoky Mountain, LADIES (( NEW )) "6220" - Piper Leather Western Boot, Size 6 MZara Womens Shoes Sz 9 Euro 40 Black Over The Knee Flat Boots Nwt
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0 - 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 NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0 - 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 NMD Black C2 Suede Core Pack $160 Core Black White BY3011 Msrp $160 8-10.5 a61acc0
    Athletic Shoes
    >
    ;