Never miss an update

Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08




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
MPN: 110234 1D628
Brand: Unbranded
Never miss an update

Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08 - blurrypron.com

    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08
    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08
    NIKE KD 8 'All Star' Men’s Basketball Shoes 829207-100 SZ 11New Nike Men's Lebron XIII Basketball Shoes Blue Variety Sizes , Air Jordan XXXI Basketball Shoes Black/Game/Royal 845037-007 Sz 10.5 , Asics Gel Nimbus 18 Mens Neutral Running Shoe (D) (5878)ASICS x Packed Shoes X J Crew Gel Lyte III White Buck GL3 Sz 9.5 BRAND NEW , ADIDAS ADIZERO PRIME ACCELERATOR RUNNING SPIKES SHOESDEADSTOCK BNBT NIKE FLYKNIT ROSHE RUN GREY BLACKNIKE HYPERREV BHM SZ 11.5 799464-100 PE HARDEN ASG ALL STAR HYPER REVNike Lebron James 10 X BHM Black History Month Elite PS 583109-001 Size 8.5 WINNike Air Max 90 Premium Mens 700155-010 Pewter Mushroom Running Shoes Size 12 , Mens Hoka One One Arahi 2 Running Shoes Trainers Black/Charcoal GrayVINTAGE CREATIVE RECREATION CESARIO HIGH WHITE PERFORATED PERF NEW 12 , 2016 Nike Air Jordan Retro 15 "2017 Release" Obsidian/White Shoes! Size 11 , Nike Zoom KD10, White / Chrome / Pure Platinum, 897815 100, Size 10.5 , MENS BROOKS TRANSCEND 4 MEN'S TRAIL RUNNING/FITNESS/TRAINING/RUNNERS SHOESNew Balance Men's Black FuelCore Razah Running Shoes Sz 13 D 2583Nike Air Foamposite One Thermal Map Infrared Size 12. 575420-600 Jordan Penny , NIKE KOBE IX 9 EM TB Gym Red Black White 685776-603 Bryant Basketball Shoes 14Nike Air Jordan 2 Retro, Black / Photo Blue - White - FR Pink, Sz 11.5Men's/Women's Shoes adidas Sobakov Black Men BB7674 main category product quality leading the fashionVintage NIKE Zoom Country Rare Track Shoes 1997 70s 80s 90s Lot Erin Sicher Vntg , Rare!! New Nike AIR MAX SOLDIER V BASKETBALL SHOES US SZ 8.5 , Nike Hypervenom Phantom III SG Pro ACC 903622-801 Size 9 Sample UnreleasedNike AIR MAX GOADOME Boots -Tawny/Gum Light Brown -865031 208 Mens Sz 9Adidas Originals Men's NMD Runner Casual Shoes S76842 Size 8 , Nike Air Jordan Horizon Hi Top Men’s Basketball Sneakers 823581-400 SZ 111711 Nike Air Max Guile Premium Men's Training Running Shoes 916770-001Nike LEBRON Soldier 10 SFG LUX men's 14 (LIGHT BONE) 911306-001 , Gentleman/Lady Barkley Positive Max (green size 9 Big clearance sale special promotion Easy life ,
    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08 - blurrypron.com>Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08 - blurrypron.com
    Lane Women's Embroidered Distressed Cowgirl Boot Size 8 , Gentleman/Lady vt17587 Tod'S woman's black ankle boot Innovative design stable quality Extreme speed logisticsFELIX BARCK HAND MADE IN ITALY BLACK LEATHER OVER THE KNEE BOOTS US 7 , SoftWalk Womens Whistle Leather Closed Toe Loafers , Skechers Unity-Eternal Bliss Womens Slip On Memory Foam Trainers ShoesWITTNER - NEW - Women's Shoes Leopard Print Hair and Glitter Pumps Size 41New Django & Juliette Jackson Womens Shoes Casual Sandals Sandals FlatNEW - Sven No. 6 Halter Top Chocolate Brown Suede Clogs - 38 - Fall / Winter$355 Stuart Weitzman Two Tone Nude Leather Wedge Heels US Sz 10 MGentleman/Lady Stuart Weitzman Wedge Sandal Size 7 Cheap cheapest Recommended today , Womens/ Mens Phat Farm Hampton Nubuck sneakers size 11/9.5$110 Nike Vapor Speed Turf Football Men’s Size 8.5 Shoes Black/White 833408-017Adidas Zx Flux Plus Casual Men's Shoes Size 12NIKE CLASSIC CORTEZ LEATHER WHITE BLACK 749571-100 og Mens Casual Sneakers , Nike NIKE AIR HUARACHE DRIFT PRM MENS Sneakers AH7335-003 , Nike Air Force One Retro Hi Qs Up Towns QsAdidas Energy Boost M Black/Grey Three/Grey Two Sportstyle Running Shoes CP9541 , DR. MARTENS Industrial Wellington Brown Sz 11 M Men Steel-Toe Pull-On Work Boots , 2013 NIKE LEBRON 10 X EXT CHAMPAGNE CORK QS US 7 CHAMPIONSHIP BROWN , Florsheim Men's Forum Bike Toe leather Brown Boots 14157-200Hush Puppies Mens Sz 15M Brogue Lug Red Wingtip Loafers Comfort Flex Sole 15 MMens Adidas Daily 2.0 Steel Canvas Athletic Sneaker Lifestyle Shoes B42172 8-14 , COLE HAAN ZEROGRAND WINGTIP OXFORD WITH STITCHLITE GREY SIZE 8 NEW (C26252)Propet Men's Scandia Strap Dark Brown Grain Comfort Shoes , Rockport Men's Size 7 Tan Leather SP Wing Tip Oxford Dress Shoe TL-183SPERRY STS14364 - WAHOO CVO Size: - Color: , NIKE WOMENS INTERNATIONALIST Pink-Grey retro running sneakers newWomen Round Toe Sequins Zip Block Heels Ankle Boots Winter Fashion Lady Shoes , Women Winter Snow Boots Shoes White Boot Ankle Zip Closure Type Round Toe ShapeBoohoo Womens Cleated Platform Suedette Pull On Chelsea Boots ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08 - 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.

    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08 - 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
    Men's/Women's manufacturing MENS BROOKS HYPERION retail MEN'S RUNNING 29811/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES Innovative design Skilled manufacturing retail price a531a08
    Athletic Shoes
    >
    ;