Never miss an update

New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4




Never miss an update

New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4 - blurrypron.com

    New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4
    New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4
    **Hoka One One Bondi 5 Running Shoes -Women's Size 7,Medieval Blue/Blue Radiance , New Nike Tanjun Racer Running Women's 9.5 Grey Sail Black White Shoe 921668 003Nike Air Force 1'07 Mid Seasonal Enamel Green Gold 818596-300 Women's Size 6 NEWNIB COLE HAAN Women's GrandPrø Tennis Sneaker IN ROSE GOLD LEATHER SIZE US 8Nike 6.0 Women's Black Air Isis Athletic Skate Shoes SIZES! NIB NEWNIKE DUNK Hi 6.0 CLEAR Panel SB Women's Basketball Shoes 342257-131 Size 8 39Nike Vandal Low Brown/Red 316555-221 Women's SZ 9.5 , NEW WOMEN'S NIKE FREE RN MOTION FK 2017 RUNNING SNEAKERS SIZE 6Nike Womens Air Zoom Fearless Flyknit Grey Green Women Training Shoes 850426-104 , Women's Nike Air Zoom Pegasus 34 Shoes -Size 6.5 -880560 605 , Vans SK8 HI SLIM ZIP Leather Zephyr Blue Women's Shoes 7NIKE WOMEN'S ROSHE ONE PRM SHOES SIZE 6.5 white green 833928 100Women's Nike Zoom Fly Blue Fox Shoes -Size 6 -897821 400 Vans Black Ball Hi SF leila Hurst 70's Floral Women's 5Altra Provision 3.0 Teal/Pink Running Shoe Women's Us 9.5 Eur 41 (A3,9) , New Nike Dart 12 Aluminum White Running Training Shoes Women's Size 11.5Reebok Women's FREESTYLE HI COLOR BOMB Shoes Pink Craze/White BS7861 b , Converse All Start Canvas Chuck Taylor Low Top Size 9.5 Women New With Box .PUMA Womens Basket Mid Wtr Wns Fashion Sneaker White Size 7.5 , Nike Air Max 90 IT Womens Golf Shoe Infared White/Grey/Red 844648-100 NEW SZ 6 , NIKE SB STEFAN JANOSKI PREMIUM CNVS Womens 7 (5.5Y) Grey Aqua 654862 004 NEW , Nike RUN 5.0 TR FIT BREATHE (Sunset Glow/Pink) Women's Shoes 5 , New! New Balance 928V2 Women Size 12 B -BWW928HW2 Walking ShoeSkechers Women's Meridian Montae High Top SneakerNew Balance Fresh Foam 1080v7 Running Shoes, Women's Size 7.5, Blue/YellowHOKA ONE ONE Women's Infinite Running Sz. 5 Medium AMPP Acid/Mulberry , PUMA Womens Carson 2 Metallic Wn- Select SZ/Color. , Saucony Women's Progrid Echelon 3 White/Green/Citron 10154-1 Brand New In BoxAdidas Womens Liquid Ride Running Shoes Black/Baby Blue/Pink G99575 #BR
    New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4 - blurrypron.com>New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4 - blurrypron.com
    Ariat Men's Workhog Pull-on H2O Composite Toe Work Boot Aged Bark/Army Green ...$1695 OSCAR DE LA RENTA BLACK LEATHER BOOTS 41-11 , Reebok Zoku Runner ULTK Fade UltraKnit Smoky Indigo Men Running Shoes BS6303New Django & Juliette Jinnit Rose Gold Leather Rose Gold Rose Gold Womens ShoesSPERRY TOP SIDER A/O Silver Metallic Leather Boat Shoe Size 9 NIB $95 , Christian Louboutin Perou Corazon Leather Heart Loafer Flats Size 36 New $995ARMANI COLLEZIONI Black & Gray Ankle Strap Pumps XAD404 US 10 / $595 NEWEuc Rare Jeffrey Campbell Cats Tapestry Wedges 7.5 , Nine West Women's Mana Fabric Sandal - Choose SZ/ColorMan/Woman fur slides New product High-quality materials Authentic guarantee , Gentlemen/Ladies Stuart Weitzman Women's Corbata Wrap Sandals Queensland discount price British temperament , **Asics Gel‑Kayano 23 Trail Running Shoes-Men's size 14 Orange , Vans Men's Shoes "AV RapidWeld Pro'' -- Blackout , New Balance Teal Green Gum Epic TR Bespoke Sz 9.5 EPICTRAHSpira Stinger XLT 2 Running Men's Shoes , Under Armour 1269274 Mens Clutchfit Drive 3 Basketball Shoe- Choose SZ/Color.Nike Lebron XV - SIZE 8 - AQ2363-100 Graffiti Machine NO BOX TOPnike air jordan spike forty mens hi top basketball trainers 819952 706 sneakersMen/Women BRAND NEW CUSTOM OLD SKOOL VANS Outstanding features Latest styles Seasonal promotionLOBLAN 517 Brown Leather Real Biker Western Ankle Square Toe Classic Cowboy Boot , Fashion Mens Pointy Toe Suede British High Top Ankle Boots Casual Shoes Wine Red , Hot Men's Casual Suede Leather penny shoes driving moccasins loafers Flats HeelNIB Women's Eddie Bauer Motive Shoes in Dark Plum Size 7MNike Wmns Air Presto Particle Beige Women Running Shoes Sneakers 878068-201WOMENS NIKE AIR MAX LD ZERO SE PURE PLATINUM SIZE UK4/US6.5/CM23.5 911180-002 , Women Adidas D96704 Superstar Slip on Casual shoes white sneakersNike AIR MAX 1 MID Womens Sneakerboot Waterproof 685267-002 Size 10 , Global Win GLOBALWIN Women's Winter Fasion Ankle BootsWomens Sam Edelman Shalin Black Suede Faux Fur Boots. Size 7 Wool Lining. , A.P.C. Gaya Caramel Brown Suede Women's Ankle Boots Size 36EU / 6US ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4 - 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 Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4 - 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 Shoes! 3 Womens Nike In-Season TR 3 Sneakers In-Season Shoes - 12 3aa3ec4
    Athletic Shoes
    >
    ;