Never miss an update

Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797

Item specifics

: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
Modified Item: No
Pattern: Solid Style: Fisherman
US Shoe Size (Men's): 11 Material: Leather
Color: Black Width: Medium (D, M)
Brand: Cole Haan UPC: Does not apply
Never miss an update

Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797 -

    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797
    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797
    Fitflop Mens X-tracomff Open Toe Slide Sandal Shoes, Chocolate Brown, US 12Prada Fashion Sandals Ankle Strap Leather Size 11.5 NIB , Birkenstock Arizona BS 45 (M12-12.5) Blue Sandals Shoes TB3-22Roman Gladiator Chic Mens Genuine Leather Buckle Strap Open Toe Sandals Shoes NW , Salvatore Ferragamo Groove Gancini Flat Pool Slide Sandals, Bubble/Bianco Sz 11 , Gladiator Mens High Top LEATHER Roma Sandals Hollow Out Summer Boots shoes new , Gladiator Men Sandal High Top Hollow Out Ankle Strap Slingback Roma Leather ShoeRelife 8738 18712 03 Men's Shoes Sandals Outdoor Hiking Touch Fastener BlackFashion Men's Casual Slippers Real Leather Sports Sandals Flats Beach Shoes New , Roman Real Leather Mens Flip Flops Slip On Buckle Strap Sandals Beach Shoes Size , Men Leather Black Rivet Toe Ring Roman Gladiator Punk Beach Sandals Shoes US Sz , Chaco Men's Z1 Classic Polyster Jacquard Webbing 9D(M)US Sandal J106161 Tri JavaZ Coil Sidewinder Men’s Brown Leather Pain Relief Sandals Sz 14 W Comfort NWB , Mens Summer Genuine Leather Sandals Flat Heel Fisherman Slippers Beach Shoes NewMen Punk Rock Gladiator Casual Ankle Boots Sports Roman Sandals Open Toe Hot nEW , NEW - ABEO Men's 'AVALON - AM056' Taupe/Brown B.I.O. SYSTEM SANDALS - 9.5Brand New Mens Aero Blue Chaco ZCloud Sandals, Size 12 M , Authentic Alligator Crocodile Skin Leather Sandal Shoes 100% NewRelife 8738 18712 03 Men's Shoes Sandals Outdoor Hiking Touch Fastener JeansTed Baker London Men's leather dress Sandals Size 12,light Brown RobiiTeva Men Leather Sandals Size 11 Brown Style 6556 , NIB SAINT LAURENT Paris Brown Leather Flat GLADIATOR Strap Sandals EU-44 US-11 , Birkenstock Arizona Oiled Nubuck Leather Cork Latex Footbed Men's 52531 Habana , open toes slip on slippers casual flat heels sandals shoes leather oxfords beach , JOHN LOBB Men's Shoes 171220 Red 7 , Marcelo Burlon NIB Bai Leather Pool Slide Sandal ($170) w/tax , Men Zipper High top Hollow out Gladiator Roman Real Leather Boots Sandals Shoes , Mephisto Sam Fisherman Leather Buckle Sandal- Tan Brown Leather - 42 / 8US (T73) , Versace Men's Medusa Head Beach Slides Size 43 US 10 $430
    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797 ->Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797 -
    Durango Women's Distressed Tan Slouch Western Boot , Women's Shoes Boots MOMA Leather Decorated Brown Vintage Made In Italy Exclusive , MENS ASICS GEL KAYANO 23 MEN' S RUNNING/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOES , Gentleman/Lady Demonia GRIP-105 Beautiful design luxurious Direct businessNEW Easy Steps Rhianna Black Suede Heels Women Shoes Comfort Fit C-Fit , Pikolinos Jerez Slip On Shoes In Blue Leather, Wm Sz 40 , Loeffler Randall Bow Flats Beige Peach Shoes Studded Stella 7b , New Jimmy Choo Black Silk Evening Heels with Jeweled Rhinestones Heels 40.5 , Nine West Ideena Suede Womens Dress Pump- Choose SZ/Color.Max Mara stunning crimson red suede pumps size 36 , $795 CHRISTIAN LOUBOUTIN KONSTANTINA 70 BLACK LEATHER PUMPS HEELS SIZE 37 , Womens Pearls Beads Open Toe Sandal Hollow Out Pumps Mid Heel Shoes Ankle BootsWomen Gladiator Open Toe Buckle Straps roman Sandals Mid-calf Leather Flat heelsNike Lunarcharge BN Wolf Grey/White-Black Women's 933797-010ETNIES FADER 1.5 LOW SKATE SNEAKERS MEN SHOES BLACK 4101000352-001 SZ 8.5 NEWMens Nike Train Quick Training Black/Black Brand New Size 11.5 844406-002 , Puma GV Special Matte Shine 35891201 Retro Tennis Sneakers Shoes Men's 6.5 new , Nike Air Jordan Retro 6 - Sport Blue size 9.5 , Nike Air More Money Mens Retro Basketball Shoes Sneakers Pick 1 , Skechers Men's for Work Hartan Steel Toe Shoe 77066 Size 12 , NEW Nunn Bush Men's Glenwood Slip 84514 Moc Toe Slip On Loafer 10Mmens chic loafers suede leather bowknot moccasin slip on shoes party dress shoesMens pointy toe low block heel embroidered dragon wedding club slip on shoes , Men's/Women's New Balance 401 Sandals Elegant and sturdy set meal Selected materials Pick up at the boutique , Women's Nike Free RN 2017 Running Shoes Black Anthracite Size 8.5 880840 003 NIBWomen's 9.5 Nike Air Max 1 Cut Out Premium Leather Atomic Orange Shoe 644398-100Air Jordan 1 High Zip AQ3742 116 Triple White Women SZ 5 - 12New Balance WARIALB1 B Black& White Fresh Foam Lightweight Lifestyle Running NBTwisted X Boots Women's WWA0001 Western Athleisure Sneaker Tan Leather Sneakers , NEW IN BOX! KELSI DAGGER - CAROUSEL BROWN FRINGE SUEDE BOOT-11M
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797 -

    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.

    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797 -

    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.


    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
    Cole Haan Mens NERUDA Black Fisherman Sandals Cole Slip On Closed Toe Fisherman Sandals Black 11M 85c5797