Never miss an update

New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554

Item specifics

New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Model: ML574ESH
US Shoe Size (Men's): 10.5 Style: Athletic Sneakers
Brand: New Balance Product Line: New Balance 500 Series
UPC: Does not apply
Never miss an update

New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554 -

    New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554
    New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554
    CONVERSE CHUCK TAYLOR ALL STAR ONE STAR 11.5 HI TOP SNEAKER 103638FT MEN'S SHOES , AP344 UMBERTO LUCIANI shoes white blue leather suede men sneakers[TUBULAR RUNNER-B25596] ADIDAS ORIGINALS WEAVE PRIME KNIT MENS SNEAKERS ADIDASCOadidas Men's Freak X Carbon Mid Softball ShoeFred Perry Underspin Mens Burnt Henna Canvas Trainers , New Nike 6.0 RZOL Low Shoe - Men's Black/Gum Light men's shoes size 8 $195New Balance 574 Fresh Foam Black White Green Sz 10 MFL574BGNIKE Men's Air Versitile Nbk Basketball-Shoes 10.5, 14 Color Game Royal/Mtlc Sil , Men's Size 14 Nike 318456-111 Air Max TL4 Running Sports Athletic Shoes-EUCAdidas City Cup College Burgundy White Sz 10.5 CQ1082Nike Men's Free RN Running Shoe Black/White/Dark Grey/Anthracite Size 13 NIBadidas Men's 5-Star Mid Football Shoe, Black/White/Ngtmet, Size 16 M USMerrell Moab Fst Mens Comfortable Hiking Shoes , AIR JORDAN 14 RETRO white, black-varsity red-metallic silver 2006 Sz8 , Mens Skechers Sneakers Quantum Flex Country Walker Relaxed Fit Shoes - BrownVANS KYLE WALKER PRO BLACK/WHITE SKATE SHOES NIB SIZE 8 , New Balance 574 Rust White Grey Gum Vintage Russett Sz 12 ML574ESHGentleman/Lady Puma Cell Turin 9 Good design Moderate cost Direct business , AP350 UMBERTO LUCIANI shoes dark brown leather suede men sneakers , Nike Roshe One Triple Obsidian Sz 9 511811-418adidas EQT Support RF Trainer UK Size 8 8.5 9 9.5 10.5 White Shoe Run RRP /-AB641 TRIVER FLIGHT shoes brown suede men sneakers , new Nike Toki Nd Sneakers 385444-005 Grey Shoes Size 8.5 , Mens Skechers Sneakers Nichlas Comfortable Casual Shoes - Black - See Sizes , Men's Wolverine Terrain II Low ICS Sneakers, Brown, 9 US, Mzx472 U.S. POLO ASSN. shoes gray suede men sneakers , Mr/Ms Sparco LEYBURN Fine processing Attractive fashion various kindsFabric Zeta Runner Trainers Mens Beige Sports Shoes SneakersNew Balance Mens Sneakers 247 Classic Black Dark Grey MRL247BG
    New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554 ->New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554 -
    Man's/Woman's Parlanti Women's Equestrian Tall Boots 40 Elegant and sturdy set meal Online Exquisite workmanship , Gentleman/Lady ☆—Used—Osiris Bronx—Silver—Red—Sneakers—Shoes—Size US11—UK10—Skater—Hip Hop—☆ Beautiful design Low price Excellent workmanshipVans Sk8-hi Lite Womens Port Royal Suede & Canvas TrainersMade in Italia Shoes Woman Ankle Boots trendy Classic Black 73878 Cool BDX , Men's/Women's Wittner Ladies Shoes Black Suede Heels Crazy price, Birmingham Optimal price As of the latest model , Womens Punk Leather Round Toe Rivet Creeper Shoes Flats Platform Slip On LoafersChiara Ferragni Womens Stars Patch Leather Sneakers Shoes White US 9.5 , Jimmy Choo Women's Dolphin Espadrille Flats Nude SizeMan's/Woman's Asolo Women's Ember Grey/Anthracite Sneakers Diverse new design a good reputation in the world wonderful , Botkier Women's Stella Suede Pumps Size 7.5 Soft Peach Retail $128Givenchy Leopard Studde Piper Stud-Embellished Flats Ballerina Shoe Ballets 39.5 , Hot Autumn Womens Ankle Boots Denim High Stiletto Heels Shoes Pointed Toe Shoes , Pleaser Womens Sexy22/R-B Dress Pump- Pick SZ/Color. , Sergio Rossi thong women's black Leather slippers mules shoes Size US 6 - , AD940 SUSIMODA shoes brown leather suede women sneakers , Nike Air Trainer III 3 PRM Premium QS 709989-201 Bo Gum Superbowl Size 9 , Adidas Consortium TUBULAR RUNNER Black Size Men's US 9 B35619 Limited Edition , Saucony Mens Soarin j2 Track Shoe- Pick SZ/Color.Nike Air Jordan XI 11 Retro 72-10 BLACK GYM RED WHITE GREY BRED OG 378037-002 10 , Colorado Waterproof Black Suede Work Boots Sz 11.5 M Heavy DutyPolo Ralph Lauren Shoes Conrad Canvas Mid Black Sneakers Size 8Clarks Men's Jarwin Edge Boat Shoe Tan Leather , Skechers Larson Berto Slip On Shoes Mens Casual Leather Memory Foam Loafers , Allen Edmonds "CORSICO" Italian Dress Shoes Oxfords 11 D Cognac (681) , NEW Nike LUNAR SKYELUX Breathe wmnUSszs: 6.5; 7; 7.5; 8; 8,5 run shoe 855810-001 , NEW DS WOMEN Sz 6 NIKE ROMALEOS 3 OLYMPIC WEIGHTLIFT CROSSFIT 878557 100 WhiteNIKE AIR FORCE 1 07 SE CASUAL WOMEN's RED CRUSH - WHITE - BLACK AUTHENTIC NEW SZ , Women's British Style Stripe Rivets Buckle Chelsea Boots Punk Knee-High BootsPUMA Women's Tazon 6 IRI Wn Sneaker - Choose SZ/colorFly London MILI BROWN Womens Ankle Boots Combat Booty Leather US 7.5-8 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554 -

    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 Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554 -

    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
    New Balance Russett 574 Rust Vintage White Grey Gum Vintage 15999 Russett Sz 10.5 ML574ESH aba1554
    Athletic Shoes