Never miss an update

Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178

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
Brand: Undisclosed
US Shoe Size (Men's): N/A Style: Athletic Sneakers
Color: Silver
Never miss an update

Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178 -

    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178
    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178
    VANS GILBERT CROCKETT BLACK/WHITE SKATE SHOES NIB SIZE 10 , Etnies Fader 2 Black/Grey/Gum 44 EU (10.5 US / 9.5 UK)Fabric Zeta Runner Trainers Mens Black/White Sports Shoes SneakersMan/Woman LACOSTE MENSshoes Fine workmanship Won highly appreciated and widely trusted at home and abroad Preferred boutique , Etnies Fader 2 Black/Grey/Gum 42.5 EU (9.5 US / 8.5 UK) , Gentleman/Lady ADIDAS SUPERSTAR VULC ADV. MENS 12 online sale Lush design Different styles , adidas Equipment Support ADV Trainer UK Size 7.5 - 10 Shoe Run RRP /-Merrell Mens Walking Trainers - Mykos JetGentleman/Lady Adidas Loop Racer B42445 Originals online sale cheapest leading the fashionPuma, 187113-04, Narita V2, High Risk Red/Blue Aster , New Balance 574 Fresh Foam Black White Green Sz 8.5 MFL574BG , Etnies Fader 2 Black/Black/Black 44 EU (10.5 US / 9.5 UK)AK585 SABEN SHOES shoes blue leather textile men sneakersPuma Clyde Packer Shoes Cow Suit Red Suede Sail White 363507 02 Men Size SZ 12Nike Air KD 4 IV N7 Galaxy Pearl What The Eybl 9.5 Zoom BlackBZ692 CRUZ shoes gray suede textile men sneakersNew Balance Numeric 346 Mid Black / White NM346YN MSRP $80 , NIKE SB Zoom Dunk Low Pro 854866 471 Men's Skate Board Sz8-12 Fast ship K , Etnies Fader 2 Black/Grey/Gum 41.5 EU (8.5 US / 7.5 UK) , BZ257 LACOSTE shoes blue canvas men sneakersVans Men's Chukka Low Buffalo Plaid, Black and Gum Sneakers - 8.5 US (42 EU) , AUTH Adidas Originals Men's Decade Low Shoes G50793 , Etnies Fader 2 Black/Black/Black 42 EU (9 US / 8 UK)Lacoste Men's Carnaby Strap Triple Strap Off White Leather Sneaker , Aq 5398 Adidas Mens Zx Flux Plus Originals Surpet/Black/White Running Size 9.5DC Men's Court Graffik SE Skateboarding Shoe , KIM JONES for Umbro -100% Leather Sneaks-Size 9M-Light Gray-SOLD AS-IS !!Man/Woman Adidas Originals Superstars Men’s Size 9 Selling Has a long reputation International big name , Brandblack J Crossover White High Top Rare White SIZE 13 Super Clean EUC ,
    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178 ->Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178 -
    Durango Harness RD510 Womens Black Leather Western Boot , La Canadienne Womens Hope Side Zip Strap Waterproof Knee High Tall Riding BootsDan Post Laredo Eccentric 01-3122-BN97 Women's 10" Tan Leather Cowboy BootsAsics Pre Contend 3 PS Blue Pink Polka Dot Kid Preschool Shoe Sneaker C564N-4920 , Zimmermann Pointed Pump Shoes | High Heels, Mustard Suede | All Sizes | $550 RRPNine West Women's BARUTI Denim Loafer Flat, - Choose SZ/Color , Pedro Garcia Black Suede Elastic Strap Round Toe Flats SZ 37Born Green Suede Leather Loafers Shoes Mules Slides Heels Women's 6 36.5 , Anne Klein Women's Seana Ballet Flats Natural Multi Size 6 MVince Camuto Kendall Peep-Toe Black Pump Patent Leather Wome's Shoes Sz 10 M , Stuart Weitzman black textured leather shoes Kitten Heel Style Fashion , Stuart Weitzman Black leather Pumps SIZE 11 NVERA WANG Lavender Label White Heels with Rhinestones Sz 8 $350J. Crew 7.5 Suede Slingback Sandals e7663 Blue Suede Grommet Sandal NEW $128 , Men's Brand New Nike Dunk High Athletic Fashion Era Topic Sneakers [317982 704]PUMA Cell Surin 2 FM White Silver Mens Sz 9.5 Running Shoes Sneakers New In BoxAdidas Originals Basket Profile OG D65923 Tent Green/Electric Yellow Mens 9 USAdidas Originals Men's Pharrell Williams Tennis Hu Shoes Size 7 us CP9764Nike Air Max Plus SE AJ2013-003 Men's Sizes US 6 ~ 13 / Brand New in Box! , Kenneth Cole Unlisted Men's Tele-Port Fashion Sneaker - Choose SZ/Color , Dockers Men's Faulkner Loafer Tan Genuine Leather Moccasins , Men's Fratelli Select Chocolate Loafer Shoes Leather Upper/Lining Sizes 8.5-10.5Converse Shoes Chuck Taylor Ox All Star Baby Pink Sneakers Womens 4 , Birkenstock Milano Smooth Leather Unisex Sandals Brown/terracotta cork EU41 , Chaco Outcross Evo Sport Sandal Shoes Mary Janes Womens 8.5 Charcoal Grayadidas Duramo 8 K Grey White Kids Junior Women Running Shoes Sneakers BY1929 , Calvin Klein Womens Danette Fashion Sneaker 6- Pick SZ/Color. , NEW* ADIDAS WOMEN'S SHOES SWIFT RUN W CG4141 Clear Brown Knit-Textile AthleticTommy Hilfiger Tommy Star Metallic Sneaker Womens White Gold TrainersSam Edelman Black 'chester' Chain Leather And Suede Boots Ankle Boots. Size 10.5
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178 -

    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.

    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178 -

    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
    Gentleman/Lady 29967 Puma, 187559-05, Sequence, the Black/Aged Moderate Silver Moderate price Cheaper than the price Brand feast 6483178
    Athletic Shoes