Never miss an update

New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Color: Blue
Style: Running Product Line: NB 990
Material: Leather, Other Brand: New Balance
Fastening: Lace Up US Shoe Size (Women's): 7.0
UPC: Does not apply
Never miss an update

New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d -

    New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d
    New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d
    Nike Women's City Loop AA1097-201 SAND summit white desert size 10 , Women's Nike Air Max 90 LX TRIPLE BLACK PONY HAIR WHITE 898512-006 sz 6 , Nike Lunar Converge Trainers Womens Blue/White Sneakers Sports Shoes size 6.5 , WOMEN'S SHOES SNEAKERS ADIDAS ORIGINALS FLB [BY9308]Nike Women Air Max Zero Size 7.5 Running Training Shoe White Black 857661 102 , WMNS NIKE KOTH MID JCRD PREM 806976-283 DESERT CAMO HOT LAVA GREEN SIZE: 8 , Adidas NMD R1 STLT Womens sneakers Gray Sz 5.5WMNS NIKE FREE RN FLYKNIT 2017 Black/Anthracite Women’s Sz 10 (880844 010)Capezio Dance Women's Aria ESNike Women's FREE 5.0 TR FIT 4 Shoes NEW NIB Hyper Pink Grey 629496-600 SZ 6 , Brand New Women's Air Force 1 HI SE Athletic Fashion Sneakers [860544 400] , WOMEN'S NIKE LUNAREPIC LOW FLYKNIT 2 RUNNING 863780-600 SZ US W 10AHNU WOMEN SUGARPINE WP BLUE SPELL HIKING BOOTS US 11 / / NEW31 New Women's Nike Free RN Motion FK 2017 Flyknit Racer Shoes size 7 880846-002 , Saucony Triumph ISO 4 Women's Running Shoes Size US 8 M (B) Red S10413-2NIKE WOMEN'S AIR MAX 90 ULTRA RUNNING SHOES SNEAKERS SIZE 7 845110 001 , Reebok Women's Ultra V DMX Max AR2922 Sz 9 US Walking Shoe White/Solar PinkVASQUE WOMENS BREEZE GTX XCR SZ.11 Narrow GORE-TEX BOOTS NOS OLIVE , WOMENS NIKE SF AF1 AIR FORCE 1 MID SZ 10 ELEMENTAL GOLD FLAX GUM AA3966 700 , Nike Air Huarache - White - Womensadidas TUBULAR X 2.0 Black - Womens - Size 10.5 B , Adidas Women NMD R1 STLT Primeknit Sneakers Shoes Pink white Brandnew Size 5.5 , Scarpa Origin Women's 70025/002 Green Blue/Smoke Lightweight Rock Climbing Shoes , 833802-600 Nike Women Mayfly Woven Night Maroon Noble RedPuma Suede G Womens Golf Shoes 191206-03 Majesty/Majesty Ladies NewNEW ADIDAS ORIGINALS STAN SMITH WOMENS WHITE SHOES SNEAKERS CQ2810 SIZE 6.5 , NEW Women's Adidas Stella McCartney Ively Size 6.5 Stellasport , NEW Nike Lunarepic Flyknit White Black 818677-101 Womens Running Shoes All Sizes , NIKE Huarache Run PRM Running Womens Sz 9 Shoes Wolf Grey 683818 012 ,
    New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d ->New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d -
    Pleaser DAGGER-2064/B Womens Dagger-2064 Knee-High Boot- Choose SZ/Color.Celine NWOT Black Leather Round Toe Knee High Boots SZ 36 , LA CANADIENNE Womens Dorthea Black Suede WATERPROOF Ankle Zip Boots 6.5 , Valentino Patent Leather Over The Knee Boots | Poudre , Tory Burch 42750-001 Black Contraire 90 mm Boot Golf Nappa Size 8.5NIKE AIR Max Hyperposite "Artic Green" Mens Shoes Model 524862302 Size 9 D(M) USMimco $179 New Rose , Manolo Blahnik 40.5 US sz 10M Black Linen Patent Leather Pointy Pumps ItalyNew-Birkenstock Boston 260351 Woman Size 37/L6 BrownNIB Fly London Women’s Yanca Wedge Sandal size 41 or US 10 Off White Leather , Daniel Green Women's Dormie Twist SlipperNIKE SB ZOOM AIR STEFAN JANOSKI CANVAS Gray And White Distressed (size 10.5)Nike Roshe One Mens 511881-023 Wolf Grey White Mesh Running Shoes Size 9NIKE AIR HUARACHE 318429 420 OBSIDIAN NAVY BLUE/GYM BLUE/WHITEadidas Adizero Ubersonic 50 Years LT Tennis Mens Size 9 US NEW! BB6892OluKai Men's Nui Flip Flop Dark Wood/ClayNIKE LUNARECLIPSE STEALTH CHOREM GREY VOLT BLACK 408582-001 US 8 green 2 3 4 5 , Mizuno Running USA Mens Wave InspireShoe 10- Pick SZ/Color.Dunham Men DAD11BR Matthew CHUKKA WATERPROOF THINSULATE HIKING BOOT SZ 10.5 2 ENew Men's Puma X STAMPD Trinomic Woven - Wolf Gray Casual Shoes Size 9.5Man/Woman slack Men's Shoes 254633 Blue 25cm Special price a good reputation in the world Rich on-time delivery , 8 New adidas Originals PRO MODEL Animal Print Shoe White Black S75068 SuperstarMan's/Woman's Man Shoes Sperry grey Long-term reputation Sufficient supply a lot of varieties , Anne Klein Guardless Slip On Fashion Sneakers 675, Navy Multi, 8 USMezlan Cognac Brown Raised Split Cap Toe Dress Shoe OxfordNew NIKE Women's Tanjun Comfort Breathable Running Sneaker Grey **TOP SELLER**NIKE FREE 5.0 TR FIT BRTHE SNEAKER WOMEN SHOES ARTISAN 718932-300 SIZE 10 NEW , Superga Womens 2750 Embleaw White Fashion Sneakers 6 Medium.VANS x Marvel Black Widow Classic Slip-On Women’s SZ 7.0 Men’s SZ 5.5 NEW!!Pajar Alice Women's Waterproof Lined Cognac Brown Snow Boot Size 38 US ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d -

    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 New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d -

    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 New Balance 990 WMNS USA Sz 7 USA WMNS 37.5 990 Blue W990NV3 NB ENCAP Disney Classic 8da723d
    Athletic Shoes