Never miss an update

Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795




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: Pleaser
MPN: RBOW1017TF-6-MC-NMC
Never miss an update

Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795 - blurrypron.com

    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795
    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795
    Men's/Women's EXOTICA-305 White Red Attractive and durable Sales Italy Immediate delivery , Men's/Women's QUEEN-100 Black Beautiful design Latest styles Perfect processingMan/Woman FLAIR-2010 Brown Exquisite (middle) workmanship The latest technology Outstanding styleDockers by Gerli 35ne217-686550, Womens Hi-Top Sneakers, Silver Silber 550, 4 , Men's/Women's HERO-100 Black Pat flagship store auction a lot of varietiesGentleman/Lady KISS-292 Black Economical and practical Optimal price Excellent stretching , Gentlemen/Ladies ADORE-1018SRS Black PU Special purchase First batch of customers Vintage tide shoes , Men's/Women's DELIGHT-1018LG PU Black Purple Various styles Won highly appreciated and widely trusted at home and abroad classic style , Men's/Women's SCREAM-2027 Black Big clearance sale New in stock high quality product , Gentleman/Lady ADORE-1008SQ Black Sequin Many styles delicate The first batch of customers' comprehensive specificationsMan's/Woman's DELIGHT-2022 PU Black Great variety In short supply Don't worry when shopping , Gentlemen/Ladies KISS-285 Black Long-term reputation Sufficient supply Caramel, gentle , Gentlemen/Ladies DELIGHT-600-41 PU Black Fine processing new Excellent functionMan's/Woman's ADORE-1024RSF Black PU main category Attractive fashion Popular tide shoes , Men/Women KISS-200-46 PU Black Attractive and durable low cost Easy life , Men's/Women's ILLUSION-2017RSF PU Black Crazy price online shop Amoy , Gentlemen/Ladies BLONDIE-R-1008 Black Glitter Modern and elegant fashion Preferred material Known for its beautiful quality , Gentlemen/Ladies DELIGHT-2021 Black Excellent craft First batch of customers professional design , Men/Women KISS-200-42 PU Black fashion Settlement Price AmoyMen/Women ADORE-1018 Black PU Chrome Not so expensive Online export store Non-slipMan's/Woman's DELIGHT-2020 Black Rich design auction Most practical , Men/Women DELIGHT-1017TF Clear Black Innovative design Elegant style Fair price , Gentlemen/Ladies DELIGHT-600-23 PU Black Good world reputation Preferred material Famous store , Aigle Unisex-Child Perdrix Wellington Boots - Khaki, 1 UK , Men's/Women's BLONDIE-3000 Black Pewter Chrome Queensland Beautiful appearance Selling new products , Men's/Women's DELIGHT-2059TT Black Red Guarantee quality and quantity Online Easy lifeMan's/Woman's DELIGHT-1014 Black Easy to clean surface Make full use of materials Known for its beautiful quality , Gentlemen/Ladies GLAM-300 PU Black Velvet Charming design Known for its good quality Elegant and stable packagingGentleman/Lady DELIGHT-600-38 Black Elegant and sturdy set meal special function Outstanding style
    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795 - blurrypron.com>Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795 - blurrypron.com
    GIANNI BINI Ride-On Black Pebbled Leather Motorcycle Boots NWOB Sz 9MZARA LEATHER ANKLE BOOTS WITH JEWEL DETAILS BLACK 35-42 REF.6176/301 BLOGGERSWOMEN LOS ALTOS BURGUNDY GENUINE TEJU LIZARD SNIP TOE WESTERN COWBOY BOOT 340743 , Alpinestars SUPERTECH R Black/White/Red Motorbike Racing Performance Boots , New I Love Billy Nolo Black&Cream Flo Womens Shoes Casual Boots Ankle , Man/Woman Sneakers Chiara Ferragni Glitter Modern and elegant fashion New style Fine wild , Mr/Ms Bandolino Women's Edition Natural Leather Flats Exquisite (middle) workmanship Sales Italy Very good classification , Vince Bray 2 Loafers - Women's Size 8.5M, BlackBadgley Mischka Lacie White Satin Embellished D'Orsay Pump Size 8M B873/ , PONY BOOTS NEW PLATFORM 20CM-8CA LACK STRONG SIZE 6-16 BOLINGIER POLAND 1463Yves saint laurent White Leather wooden Slide Sandals Shoes size 7 MLK Bennett Womens 7 Sandals Gold Bow Woven Espadrilles Kitten HeelsSummer Bohemia Shoes Women's Espadrilles Wedge High Heels Peep Toe Beach Sandals , CLARKS ORIGINALS X SUPREME DESERT CHUKKA RED Sz 9-10.5 30009 , NIKE AIR MAX 270 Men's Sneaker AH8050-107-size 11 , Mens Cuban Heels Ankle Boot Chelsea Leopard Suede Leather Casual Shoes ZsellCole Haan Mens Truman Leather Chukka II Boot Shoe , Tretorn Holdyn Mens 7.5 Leather Black Capers Boot NWOB MSRP $175Free Shipping canvas shoes abbey road beatlesNWB SuitSupply Brown Derby Molliere Suede Shoes US 10.5D MSRP $259Oxfords Fashion Men's suede Leather Double Strap Buckle Formal Dress Shoes US SzValentine's Day Special-South African Boerboel Print Running Shoes For Women-Fre , Nike Lunarglide 9 Women's Running Shoes, Size 12, 904716 002 , Nike Air Huarache Run SE Womens 859429-300 Igloo White Running Shoes Size 6.5WMNS AIR FORCE 1 SF AF1 MID SPECIAL FIELD ORANGE QUARTZ SZ 8 [AA3966-800]NIKE Womens Nike Air Zoom Pegasus 34 880560-405 ARMORY NAVY Size 9.5 , Bottes SAN MARINA Cuir Marron T 37 TBENine West Women's Blueberry - Choose SZ/ColorBareTraps Anibeth Mid-Calf Snow Boots, Mushroom Suede, 6 USNEW FRYE "AVENGER" WOMEN'S ZIP HIGH BOOTS Size 8 M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795 - 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.

    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795 - 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
    Mr/Ms RAINBOW-1017TF-6 RAINBOW-1017TF-6 appearance Clear Multi Neon bargain Beautiful 26692 appearance Don't worry when shopping 2abc795
    Boots
    >
    ;