Never miss an update

Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b

Item specifics

: An item that has been previously. See the seller’s listing for full details and description of ... Read moreabout the condition
MPN: Does Not Apply
Size: 44,5 Material: Suede
UPC: Does not apply Colors: Black
Never miss an update

Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b -

    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b
    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b
    NEW MEN'S BLACK LEATHER SLIP ON FORMAL CASUAL SHOEmen's formal breathable business dress shoes formal wedding shoes black or brown , Derby shoes HEYRAUD All Leather Black GOODYEAR Process T 45 VERY GOOD CONDITION , Duca di Morrone Shoes Men Flat shoes Blue 82356 BDT ORIGINAL , Adidas Stan Smith White Studded Silver Shoes ORIGINAL 100% ITALIE 2018 , Gentlemen/Ladies Car Shoe Moccasin excellent quality Selected materials Great choiceClassic shoes elegant Cricketer's man shoes men leather brown 45 , Man's/Woman's Oxford Shoes Church's Durable service special promotion Fashion dynamic , US Size 6.5-11.5 Men Breathable Outdoor Beach Mesh SneakersDerby BERWICK 1707 All Leather Black Goodyear / GOOD CONDITION , Men's/Women's moccasin leather suede Cavendish 9376-3095-01 Big clearance sale Low price Explosive good goods , Gentlemen/Ladies Mens Loafers, Brown from Canada Reasonable price Settlement Price high quality product , Man's/Woman's Clarks Cloudsteppers Tunsil Ridge Casual Shoe Louis, elaborate Elegant style Direct businessMen Breathable Anti-collision Toe Hook Loop Outdoor SandalsMocassin DODONI Made in Italy All Leather Black T 41,5 VERY GOOD CONDITION , Diesel Shokrim Men Men's Leather Sneakers Business Vintage Shoe Size Selectable , Gentlemen/Ladies Moccasin Edward Green New Listing Comfortable touch Great choice , Mens Casual Breathable Beach Non-slip A ¢ â ' ¬â€¹Genuine Leather SandalsGentlemen/Ladies Stylish Men's Shoes Every item described is available Quality First Export , Duca di Morrone Shoes Men Flat shoes Grey 83690 BDT ORIGINALVINTAGE Mocassin BALLY France Monsieur All Brown Leather T 42 GOOD CONDITIONBAILOUR Men's Formal And Casual Shoes Luxury Double Monk Handmade , Men Hand Stitching Hollow Out Slip On Casual Flats , AP286 U.S. POLO ASSN. shoes white textile men moccasinsAP272 U.S. POLO ASSN. shoes blue textile men moccasinsAdidas Stan Smith Green Studded Gold Vintage Shoes ORIGINAL 100% ITALIE 201 , Duca di Morrone Shoes Men Ankle boots Black 83090 BDT ORIGINAL , Men Comfortable Genuine Leather Driving Shoes Slip On Loafers FlatsDuca di Morrone Shoes Men Ankle boots Brown 82354 BDT ORIGINAL ,
    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b ->Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b -
    NINA SHOES ALETTE-SL BLACK TRACY SUE 8M FRINGE BOOTIES NWB , Womens Black Leather Over Knee Thigh Boots High Heel Buckle Strap Clubwear Shoes , Nike - Men's Lunarsolo - Black Chrome/Port Wine/Hyper CrimsonYSL Saint Laurent Black Pierre Boots with black studs and high heel. Size 38. , AUTHENTIC BOTTEGA VENETA INTRECCIATO SUEDE DRIVING SHOES BEIGE GRADE AB USED -HP , Man's/Woman's SIREN-09 PU Mint Complete specification Affordable Very practical , The North Face Women's Base Camp Slide II TNF Black/TNF White SlidesGiuseppe Zanotti Women Shoe Sandal Metallic Gold Multi-Color Stone Heels Sz 37 7 , Womens Leopard Stilettos High heel shoes Pointy toe Print Slip on Pump Nightclub , Ivanka Trump New Tirra Brown Womens Shoes Size 6 M Heels MSRP $120 , Bordello TEEZE-06W Women's Shoes White Patent Hidden Platforms Pump High Heels S , Man/Woman bebe CHANDRA SANDALS/HEELS SIZE 10 Practical and economical Good market Tide shoes listNine West Women's Maqui Pump - Choose SZ/Color , Chloe VITELLO BIKER Buckle Bootie Boots NEW Size 40 shoes Black NEW NIBNew Balance WCRUZWT Womens Fresh Foam Cruz Running Shoe- Choose SZ/Color.Nike Blazer High Top Men Shoes 316664-102 White Black Metallic Digital Trim 10.5 , New Nike Mens Air Zoom Mariah Flyknit Racer Run Running Shoes 918264-004 Sz 12NIKE FL-RUE MEN'S CASUAL SHOES SIZE: 9 PLUM FROG WHITE 896173 500Adidas adidas CrazyQuick Mid Mens FTball Cleats (11- Pick SZ/Color.Nike Zoom KD 9 iD White Black SZ 7 // Womens 8.5 (863695-992)2010 Nike Air Max 95 Cool Grey Neon Volt Black Size 12 609048-072 Sneakersadidas Originals Men's Pureboost Reigning Champ m Running ShoeWolverine Men's Cabor 10 in Soft Toe Boot - Choose SZ/ColorMens Leather Pointed Toe Dress Formal wedding Shoes Ankle Boots Outdoor Hot Sale , men's shoes CHURCH'S 7,5 () desert boots ice suede AH493-H , Nike Zoom Fit Agility Running Training Black Sunset Glow Women's SZ 10.5 , NIKE EXP X14 Mica Green White Storm Pink Twilight Mars Women's AO3170-300 Sz 9Mr/Ms K-Swiss Women's Modern High P Sneaker for you to choose Modern and stylish fashion Clearance sale , NIKE Women's WMNS Air Max 1 LX, White/Black-Total Orange, 6.5 USNWT Women's Jennifer Lopez Foldover High Heel Ankle Boots Choose Size White ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b -

    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.

    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b -

    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
    Shoes TRAILER'S Black Black Suede mogochinese-29994 T 44,5 TOP TOP CONDITION c30de1b
    Dress Shoes