Never miss an update

DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291




Never miss an update

DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291 - blurrypron.com

    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291
    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291
    NIKE AIR MAX 90 ESSENTIAL 616730-023 BLACK WHITE RUNNING RETRO WOMEN'S SZ 7 , NIB Nike Free RN Run Sneaker Blue Glow Black Crimson 831509-404 Womens Sz 10 , Nike WMNS Flex Adapt TR [831579-302] Women Training Shoes Hasta/Seaweed US 6.5 , Man/Woman ASICS GEL-Ziruss - Blue - Womens Aesthetic appearance New in stock Strong heat and heat resistanceNike Womens Air Zoom Mariah FK Racer Running Shoes Sz 7-9 Black White AA0521 100Women's Nike Cortez '72 SI Leather Shoes NEW Black / White , MSRP $125adidas Performance Women's Pureboost Xpose Running Shoe - Choose SZ/ColorSketchers Shape Ups Mary Jane Shoes Sport Walking 11807 Black Size 9 Womens , NEW Womens NIKE LUNAREPIC LOW FK 2 GYAKUSOU 10 Blue Fox Running Shoes 880287-400NIKE ROSHE RUN KJCRD Bronz/Blk/Sail/Wht WOMEN'S SZ 7 NEW 705217-700 AIR MAX QS , Nike Air Prestigo III Women's Pink White Low Top Size 7.5 #S78 , BNIB BASKETS SNEAKERS NIKE WMNS TENNIS AIR CAGE ADVANTAGE /US 7.5/ , New Nike Womens Free 5.0 BT Run Running Shoes 745383-001 Sz 7.5 Be TrueNike WMNS Air Max 1 Ultra Essentials [704993-401] Women Casual Deep Blue US 7.5New Balance Women's Minimus Sport Golf Shoe, - Choose SZ/Color , Air Jordan Nike True Flight Triple Black 342964 013 Basketball Shoe Womens 82018 WMNS Nike Air Jordan Modero 1 SZ 7 Mica Green Sandal Slide AO9919-300 , WMNS Nike Air Jordan Modero 1 SZ 12 Particle Beige Pink Sandal Slide AO9919-200New Saucony Ride ISO ‑ Womens Running Shoes S104441 sz 10 h306 , Under Armour 1285481 Womens SpeedForm Gemini 3 Running Shoes- Choose SZ/Color.{B39398} WOMEN'S ADIDAS ORIGINAL SUPERSTAR WHITE/GOLD *New* , Lot of 4 Adidas Energy Boost - Skechers - Inov F-Lite 219 Running Shoes Sz US 9Vintage Nike Air Icarus Women's 9 Air Max 95 90 1 Running OG Original 90’s , Man's/Woman's NIB NIKE Air Max Thea High quality and cheap Upper material classic styleBASKETS SNEAKERS WMNS RUNNING NIKE JUVENATE /US 7.5/ , Womens Nike Air Max 90 Ultra 2.0 Flyknit 881109-004 Black/White Brand New Size 6 , KARHU - Finland Synchron Classic Boa/Rose Dust Sneaker sz 8 - Only Worn Once!Brooks Ravenna 8 VIII Silver Blue Berry Women Running Shoes Trainers 120238 1BREEBOK Classic FREESTYLE Retro 80's Violet High Hi Top Sneakers Shoes Sz 8
    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291 - blurrypron.com>DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291 - blurrypron.com
    Womens AGL Attilio Giusti Leombruni Gray Buckle Suede Leather Boots Size 41.5 , Kalso Earth Negative Heel Rebel Boot Sz: 7.5 Brown LeatherMan/Woman Blundstone 793 Lightweight Safety Shoe Good world reputation Upper material Valuable boutique , Diadora DA8AWJ6672 Black Pink White Women Running Walking Casual Shoes SneakersCrockett and Jones Chelsea Boots Workboots Womens Brown Calf Fits 7 to 7.5DJANGO & JULIETTE new winter SADORE Charcoal Leather ankle boots! RRP$199! SALE!White Stuff Evelyn Smart Shoe Black Boot LG05 17Mr/Ms GOGO-150 PU White Rich design Upper material valueMan's/Woman's 100%AUTH BOEMOS OXFORDS/shoes/women's/ombre/black/maroon/new no box/9 Diverse new design product quality Known for its beautiful quality , STUART WEITZMAN SZ 7 M BROWN TORTOISE PRINT PATENT LEATHER STRAPPY SANDALSHeel Nine West Freddius Slide Block Heeled Sandal White Leather , EUC! GORGEOUS! Manolo Blahnik Black Patent Mary Jane Pumps sz 36 1/2 , Vince Camuto Perforated Leather Peep- Toe Sandals Dastana Grey 8M NEW A304453 , Nike Vomero 8 - Red/White Running, Cross Training (Men's Multiple Sizes) - Used , Foamtreads Women's Coddels Slipper Black 9 M US , Nike Match Supreme Txt Premium Men's Shoes Size 7.5 , Reebok Men's Supreme 3.0 Mt Running Shoe - Choose SZ/Color , Adidas Sobakov Running Shoes Sneakers BB7666 White Limited Shoes SZ 4-12FTP DC TRIBEKA SHOES Black SIZE 8 In hand and 100 percent authentic , To Boot New York Adam Derrick 1996 Charcoal Black Zipper Boots Men's Size 10 , Rockport Men's Talmage Oxford - Choose SZ/ColorChristian Louboutin Men’s Louis Flat Saffiano Strass 42.5 $3295Nike women's Juvenate SM casual shoes sneakers Bright Crimson Pink White size 8New Keen 1018773 Uneek Exo Etherea / Plaza Taupe Women's Water Shoes 9.5 USMerrell Zoe Sojourn E-Mesh Q2 Womens Size 7 High Rise 25%OFFSalomon X-Mission 3 W Women's Trail Running Shoes, Aruba Blue/Navy/Green Size 10Zee Alexis Womens Molly Ankle Boots Olive 9 M , Women Winter Cow Leather Round Toe Zip Riding Thick Heels Motorcycle ShoesWomens Show Sexy Shiny Over Knee Boots Shoes Plus Sz Pointed Toe Nighclub Party , Elasticity Elegant Ladies Pointy Toe Suede Over Knee Boots Stilettos Heels Party
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291 - 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.

    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291 - 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
    DS NIKE california-26696 2016 SAMPLE AIR SAMPLE TECH DS CHALLENGE II GOLD DART 7 AGASSI MAX TRAINER COURT 2744291
    Athletic Shoes
    >
    ;