Never miss an update

Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2




Item specifics

Condition:
: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
Brand: adidas
Width: Medium (D, M) Product Line: Boost
Color: Green Style: Running, Cross Training
Model: adidas adizero prime US Shoe Size (Men's): 11.5
Never miss an update

Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2 - blurrypron.com

    Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2
    Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2
    Men's/Women's Adidas Tubular Invader Strap Grey Pink Durable service Wholesale trade value , Converse CTAS Pro Perforated Suede Low Top Shoes Mens 11.5 Womens 13.5 , Lacoste Men's Bayliss 318 2 CAM Trainers, Grey , HOKA ONE ONE Arahi Mens Tennis running shoes Blue Aster Blazing Yellow 1016258Nike Air Jordan Flight Time Mens 12 Basketball Shoes 654272-026 Fusion Pink TealMan/Woman (B41672) ADIDAS MENS RASCAL BLACK *NEW* fashion Moderate cost Immediate delivery , Men's Nike 880271 SB Portmore II Ultralight Skate Shoe Lifestyle Sneakers , Clearance | Adidas Duramo 8 Mens Running Shoes (BA8078) + Free Aus Delivery , H7F3K-0101 Asics Gel-Lyte 3 White Size 10.5 (4271) , Adidas Mens Prophere Olive/Pink CQ3024 Size 9 , NIKE LUNAR FIRE Size 9W Wide White Blue 861458-100 Mens Waterproof Golf Shoes , NIKE AIR HUARACHE RUN PRM PREMIUM MICA GREEN-BLACK 704830-301Nike Mens KD 8 VIII Camaro V8 Bright Crimson 749375-610 Sz 9.5 , Nike TRAINERENDOR L Cool Grey Black Dark Grey Wolf Grey (D) (586) Men's ShoesNIB MENS SIZE 9 NIKE AIR MAX 1 SNEAKERS RED CRUSH AH8145-600Nike Air Zoom Powermax Power Max sz 11.5 David West Black Blue 324821-051 HOH PE , Mens New Balance 009 Speckle Suede Blue Grey ML009PB , Jordan Future Black Clear Gold 3m Reflective Premium 656503-011 Sz 11 , Men's Nike Air Max 1 Ultra Essential Size 6 (819476 401) No Box , REEBOK CLASSIC ROCKET ICE LOW SNEAKERS MEN SHOES ORANGE 1-59843 SIZE 11.5 NEW[881444-005] MEN'S AIR JORDAN B FLY 2017* BLACK GYM RED DARK GREY NIB WOVEN 8-13 , Nike Air Jordan Eclipse Mens Black Sz 10.5 And 13 724010-0102013 Nike Jordan Spizike Black Chilling Red Met Silver Sz 13 (0416) 315371-050 , Nike Downshifter 8 VIII Pure Platinum Red Men Running Shoes Sneakers 908984-012Men's Nike Air Max Motion LW SE Running Shoes Anthracite/Phantom NIB 844836-002 , Nike Air Jordan 20 AJF Black/Metallic Gold/Varsity RoyalReebok Instapump Fury CNY 2017 Chinese New Year BD2026 Msrp $275 Gw{511881-405} MEN'S NIKE ROSHE ONE SHOES NAVY/WHITE *New* , Puma Men's Sneakers Clyde Core L Foil White Black Team Gold 364669-01 ,
    Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2 - blurrypron.com>Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2 - blurrypron.com
    Men's/Women's Vionic Womens Country Lona Ankle Boot bargain a good reputation in the world Excellent workmanshipWomens genuine Leather Over Knee Boots High Heel Riding assorted colors Shoes , Solovair NPS Shoes Made in England 3 Eye Black Pointed Shoe S012-X122KENZO WOMEN'S SHOES LEATHER TRAINERS SNEAKERS NEW KENZO MOVE GREY 650PRADA women shoes brown velvet cross sandal black ankle strap gold-tone buckle , Gentleman/Lady Pleaser DIAMOND-701 Aesthetic appearance Sales Italy a wide variety of goodsCOLE HAAN SIZE 6.5 CARLY FLORAL SANDAL NUDE/BLACK LEATHER W10663 RTL $170- NIB , Alegria by PG Lite Women's Seville Ric Rack Rainbow Leather Platform Shoes , Klogs Salma Women's Clogs Display Model Shoes Tawny Adored 5 MEnzo Angiolini Women's Khanna 2 Wedge Dress Sandal, Multiple Colors , New L'amour Des Pieds Darcy Comfort Pump Orthotic Wedge Black Suede 9M , BIRKENSTOCK BILBAO 42/L11M9 R New! 520801 Brown , Men's/Women's Mischka shoes sandals snake grey flats Easy to clean surface luxurious Exquisite processingPUMA Women's Fierce Camo Cross-Trainer Shoe - Choose SZ/ColorASICS MENS GT-1000 5 GR RUNNING SHOES #T6B2N-9094Nike Free RN Flyknit Running Shoes Orange Black White 831069-601 $130 Mens US 11Mr/Ms Air Max 95 Size 10.5 Many styles Stylish and fun General product315123-001 Nike Air Force 1 Mid '07 Basketball Black/Black Sizes 8-12 NIBnike flyknit trainer Sunset Tint Size US12US8 9 10 Men Walking Trail Premium Waterproof Boot Outdoor Sports Tactical ShoesNIB Dr. Martens Victor Chelsea Boot Leather DARK BROWN Sz 12 US 11 UKCole Haan Men's GRANTLAND 2-Gore Chelsea WP Boot, - Choose SZ/ColorGIORGIO BRUTINI BROWN OXFORD SIZE 9.5 D DRESS BUSINESS FORMAL SHOES , Nike Free 5.0 TR Fit 3 Women's Sky Blue Sneaker Sz 8 5228 , Nike Air Max Jewell SE Women's - Light Bone , Adidas ZX Flux ADV Virtue Primeknit Womens BB4266 Vapor Pink Grey Shoes Size 6.5Striped Womens Round Toe Chunky High Heels Suede Side Zipper Ankle Boots Ths01Unisa Womens Zali 2 Closed Toe Ankle Fashion Boots Black Size 9.5 YP46Dolce Vita Janie Ankle Boots-Women's size 9.5 TaupeChic Womens Winter Fashion Round Toe Block Mid Heels Side Zipper Ankle Boots
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men's/Women's VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2 - 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 VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2 - 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 VNDS adidas adizero prime LTD VNDS 21002 superior Known guptauniver-21003 for its good quality Full range of specifications 3c61cf2
    Athletic Shoes
    >
    ;