Never miss an update

New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9




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: New Balance
Color: Grey with White Style: Athletic Sneakers
Features: Bootie construction Engineered knit/suede upper MPN: MRL247DX
gender: Male Width: D
Never miss an update

New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9 - blurrypron.com

    New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9
    New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9
    Men's Fila 93 Retro Heritage Overpass 2.0 Fusion White/Navy/Red 1VR12038-125 New , Nike SB Check Skateboarding Shoes Sneakers 705265 312 Sequoia Green Size 8.5 NEW , Salomon Mens Xa Pro 3D Black Hiking Mountain Trail Shoes Size 10 , Nike 407979-088 AirMax LTD Gray Black Orange Mens Size 10Nike SB Zoom Stefan Janoski Mens Skate Shoe Gold/White 616490 702 Size 11.5 , New Adidas Originals Stan Smith PC Men's Casual Shoes Wool Grey Black AQ8452 , Men's Air ShockProof Max Ultra Light Sole FlyKnit Athletic Sneaker Shoes-blueDS Nike Train Speed 4 Mens Black Running Shoes Size 11.5Men's Converse Chuck Taylor All Star High "Black/White" Fashion Casual M9160 , Adidas D Lillard DAME Basketball Red White Size 20 NEWNew Nike Roshe Run Sneakerboot Size 10.5 Gridiron Obsidian Pink Navy Blue , DC Shoes Spartan High WC TX SE Black Skate Shoes Men's 9.5 - ADYS400004 , Nike Size 11.5 Shoe Blazer Studio Low Black Leather Croc Fashion Shoe 880872-001New Vans Mens OTW Bushwick Skate Athletic Shoes Size US 9 , New! Mens New Balance 420 v4 Running Sneakers Shoes - limited sizes blackNIB Men's New Balance 005 Running Shoes Medium&4EWide 311 515 501 009 999 NavyNew Nikelab Cortez Classic Shark Low Big Tooth Shoes 810135-110 Men Size 11.5 , Men's New Balance MPACEYR Vazee Pace Running Shoes Black / Orange / Red Sz 8.5Nike SB Size 9.5 Shoe Clutch Canvas Skateboard Grey Black White 729825-007 Men'sJordan Flight Legend Blue UNC SC-3 Prem Size 9New Onemix Men's Running Shoes Outdoor Sport Sneakers Athletic Walking Shoes , New Balance Trailbuster Incense/Black TBTFRA Men's SZ 12Fred Perry Turner Slip on Retro Stripe Men's Trainers Plimsolls B6250-119 , Asics Gel Lyte III 3 Black Soft Grey White HL6B1-9010 Mens Kith V 5 TrainersNIKE RABONA SKATE BOARD SHOES BLACK WHITE GUM SB MEN SZ 13 553694-013Brooks Anthem Men's Gray Black Training Performance Running Shoes US 13 M C264 , New Men's Brooks Synergy 2 Wide Width (2E) Walking Shoe Size 15 , Converse Pro Leather 76 Men Low Top Casual White/Grey Comfort 155320C NEW Sz 9.5 , Adidas Originals Superstar OG Leather White Black Gold CQ2475 $110 New Mens 11
    New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9 - blurrypron.com>New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9 - blurrypron.com
    Men/Women Boot Born Beebe Brown Full Grain bargain Attractive fashion Popular tide shoesBrian Atwood Biba Peacock Over the Knee Boots .last Chance!!! , Nike Run Swift [908989-012] Men Running Shoes Dark Grey/Team Rednew CHRISTIAN LOUBOUTIN Chelita 85 leopard calf hair gold metal toe boots EU38.5Nike SB Dunk High Boot Mens Hi Top Trainers 536182 001 Sneakers Shoes , Dr Marten Pascal II Oxblood Vintage Smooth Boots 8 Eyelet 22964601 Size , Men's/Women's TEEZE-06RW Satin Dark Gray Rhinestone Pewter Many styles Affordable have fun , Man/Woman Funtasma ANCHOR-22 Packaging diversity real Diversified new designMen's/Women's French Sole FS/NY Women's Annabelle Platform The color is very eye-catching Low price King of the crowd , Womens Fly London Yelk Cut Out Leather Holiday Summer Wedge Heel Shoes US 5-12 , Costume National Patchwork Pointed Ballet Flat Black Multi Leather 37 M USMr/Ms Bebe Black Suede Wedge Sandals sell Attractive fashion Lightweight shoes , Manolo Blahnik Size 7/37 Brown Leather HeelsWomen's Comfortable Chic Hollow out Pointed Toe Oxfords Flat Sandals Sport Shoes , Nine West Womens Kaliope50 Open Toe Casual Platform SandalsTEVA KAYENTA WOMEN SANDALS SUEDE BLACK US 7 ///JP 24NEW NIKE SIZE 10.5 DUNK LOW PREMIUM SB (313170 603) ATOMIC PINK/BLACK-WHITEAdidas alpha bounce AC8274 Men Running shoes white sneakers , NIKE Zoom Javelin Elite 2 Black Atomic Red Track Field Spikes Shoes NEW Mens 14HOKA ONE ONE Challenger ATR 3 Men's Running Shoes Black/Red Orange 1014761 Sz 12 , Adidas Basketball Men's D Lillard Dame 3 Sneakers Size 8.5 us BB8271Cole Haan Mens 2.ZeroGrand Chukka Boot Shoe, Midnight Grey Suede/Ivory, US 7.5 , NEW BALANCE 345 BLACK WHITE SKATEBOARD NEW SHOE FREE POSTAGE SKATE SHOP AUSTRALI , Nike Women's Air Max Motion Racer Athletic Snickers Running Training Multiple SzDC TRASE TX SE Womens Trase Skateboarding Shoe- Choose SZ/Color. , Nike FS Lite Run 852448-400 Blue White Womens Shoes , ECCO Women's Soft 1 Fashion Sneaker - Choose SZ/ColorSAN MARINA Bottes talons 9 cm tout cuir daim noir 37 EXCELLENT ETATLucky Brand Women's Natania Ankle Boot - Choose SZ/ColorBlondo Black Leather Nivada Side Zip Ankle Booties Womens Size US 6M
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9 - 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 Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9 - 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 Men's 247 247 Engineered Shoes Mesh Shoes Grey Engineered with White a9c41d9
    Athletic Shoes
    >
    ;