Never miss an update

Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547




Item specifics

Condition:
: An item that has been previously. See the seller’s listing for full details and description of ... Read moreabout the condition
Brand: Nike
Size: 10.5 Colour: Purple
Never miss an update

Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547 - www.blurrypron.com

    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547
    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547
    Adidas - Originals - Gazelle - Core Black/Footwear White/Gold MetallicAsics Gel Lyte V, Size US8 Men’s Good Condition , Under Armour - Curry 3 Men's Basketball Shoe - White/Opal BlueNike SB Dunk High J-Pack Royal Size 9 DS Brand NewMan's/Woman's OluKai Nohea Moku Rock | Mustang Special purchase Has a long reputation As of the latest modelFW13 DIADORA NR. 35,5 MEN'S SHOES WOMAN CRYPTON 151031 C1512 MARCO MENGONI , DC Pure High-Top WNT Shoes Mens Unisex Footwear Trainer Skate NewFW14 DIADORA NR. 46 MEN'S SHOES WOMAN CONDOR 157385 C5293 MARCO MENGONIAsics - Men's GT 1000 6 Extra Wide (4E) - Black/Black/Silver , ASICS GT-2000 5 (4E) WIDTH - WE GO UPTO SIZE 16US , Man's/Woman's ADIDAS TERREX AX2R High quality and low overhead low cost Modern and elegant , Salomon - Men's Speedcross Vario 2 - Black/Black/Silver Metallic , Puma Suede Platform Mens Womens US Mens Size , Nike - Jordan Super Fly PO X Men's Basketball Shoe - Armory Navy/Electrolime , FW14 DIADORA NR. 39 MEN'S SHOES WOMAN CONDOR 157385 C5294 MARCO MENGONI , Man/Woman Adidas Nmd Boost Easy to clean surface product quality Immediate deliveryMen/Women Keen Detroit Low Steel Peacoat Fine processing Known for its good quality Current shape , Womens Asics GT 2000 Running Shoe Black/White US Sizes , NEW Merrell Mens Moab 2 Vent Hiking ShoesNew Adidas Unisex X Plr Sneakers In Black WhiteNike - Free RN 2017 - Black/Dark Grey/Anthracite/WhiteGentleman/Lady Adidas Y3 Retro Boost Size 11 Good world reputation Strong value Immediate deliveryAdidas Men's Crazy 8 Basketball Shoe (US 10.5) , Nike Air Max Plus TN 1 Trainers Sneakers UK9 US10 EUR44 , Man/Woman Adidas Ultraboost The color is very eye-catching the most economical cheaper , Adidas Dame 4 A Bathing Ape Camo Bape Green Men’s Sz US 5 100% AuthenticMr/Ms Adidas Pure Boost Blue Clever and practical Reliable performance Most practicalSalomon Speedcross 4 Black | Black | Black Metallic , Adidas Ultra-boost 4.0 Black And White Size US10.5 ,
    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547 - www.blurrypron.com>Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547 - www.blurrypron.com
    Brand New Original Low Cut Tommy Hilfiger Sneakers, EU42, AU8 , ADIDAS WOMENS QUESTAR BYD PURE LIGHT SHOES 2018 **BEST SELLERNike Air Zoom Elite 9 White / Black Unisex Mens 9 10 11 Womens 11 12 , Ladies Padders 3E/4E Fitting Sandals Style Jade -W , **Romika Cassie 21 Flats-Women's size 6-6.5 BlackNEW BETULA BIRKENSTOCK "ACT" WOMENS SZ 37 / 6 6.5 PINK LEATHER SNAKE CLOG SHOESGentleman/Lady BCBGeneration Heidi Classic Stiletto Pumps, Scarlet Cheap Fine art German Outlets37993 auth GIUSEPPE ZANOTTI black satin Peep-Toe Pumps Shoes 39 , Calvin Klein Flare 7.5 Dress Lizard Python Snake Sand Grey Silver Peep-toe Wedge , Man's/Woman's Havanese-Dog Running Shoes For Women-Free Shipping The color is very eye-catching Low price Official websiteShoes Jute Sole & Wedge Tan Leather Elasticized Strips NWOT 40 9US , Grey And Orange suede Airforce 1 Mens Size 9 , Gentleman/Lady Globe Mahalo SG Skate Shoes Mens Customer first new business , Nike Rn Flyknit 2018 Mens Size 12Adidas Terrex Agravic Speed Men Black/Black/Black Mens Trail Runner Size 11MNike Air Max 95 Essential Platunum Black Mango 749766-035 Men Lifestyle SneakersNEW ROCKY Hot Weather combat Boot TAN Size 7.5 E , Vivienne Westwood Anglomania x VANS Sk8-Hi Piccadilly Circus import Size US 9.5 , VANS X MR. CARTOON SYNDICATE "S" DENIM BLACK WHITE 2005 Size 12 supreme wtaps , G.H. Bass & Co. Men's Proctor Oxford , Minimalist Black BMW M Power Men's High Top ShoesMen's/Women's JSlides Men's Danny Sneaker Quality products Won highly appreciated and widely trusted at home and abroad Easy life , Cole Haan ZeroGrand Wingtip Oxfords British Tan Leather Brown Sz 12 ( C24964 )Penny Loves Kenny Women's Aaron II Dress Flat Pink/White Gingham Fabric**NEW** Asics Gel Nimbus 20 Womens Runner (B) (1401)OluKai Women's Nohea Slipper Trench Blue/Trench Blue Indoor/Outdoor Slippers , HOGAN shoes woman interactive mod. lycra+mesh + h flock HXW00N0U460D6P0351 whiteNew Anthropologie Cactus Flower Perforated Boots Sz 36 , womens vogue solid fur trim pull on round toe grid flat heel leather snow bootsWomen's Bass Black and Plaid Fur Lined Winter Duck Style Boots Size 10M NEW!
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547 - www.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.

    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547 - www.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
    Gentlemen Gentlemen/Ladies/Ladies Mens Speed Flyknit Racer service US 10.5 Durable service Stylish and fun Speed ​​refund ceca547
    Athletic Shoes
    >
    ;