Never miss an update

Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c

Item specifics

: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
UPC: Does Not Apply
US Shoe Size (Women's): Does not apply Brand: Does not apply
Bottoms Size (Women's): Does not apply MPN: Does Not Apply
Bottoms Size (Men's): Does not apply material: Does not apply
waist size: Does not apply Character Family: Does not apply
Jacket Size: Does not apply year: Does not apply
Style: Does not apply packaging: Does not apply
Size Type: Does not apply Size (Women's): Does not apply
Size (Men's): Does not apply US Shoe Size (Men's): Does not apply
Never miss an update

Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c -

    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c
    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c
    Summer Fendi Mules Frills Quilting Women'S Size 38 Shoes Sandals (99190Hermes Patent Leather Flat Ballet Shoes Pumps 37.5 Women (53926 , Hermes Boots Shoes Back Leather About 23.5Cm Treasure Spot (90658 , Shimano TR500 WOMENS TRIATHLON LADIES BIKE SHOES White - Size 36, 37 Or 40 , Man/Woman Hermes Kelly Loafers 35.5 Shoes (52734 Packaging diversity Modern design cheap price , Mr/Ms Hermes Boots Long (53372 Various goods a wide range of products a wide variety of goodsGentlemen/Ladies Hermes Goal Sneakers Velor Bp (91937 Excellent craft Clearance Comfortable and naturalHermes Opera Pumps Red Suede Flat Shoes Rouge 3612 New Unused (9760 , Fendi Flat Sandals Flowers Multi Leather 37 Ladies 39119 (42761 , Hermes Sandals Rivage Shenudankuru Rubber Size 36 Beach (92063 , Hermes Medoru Flat Shoes Patent Leather Red System Unused (53572 , Saint Laurent Ysl Fringed SL/18H High Top Suede Sneakers. Size 34Hermes Wedge Sandals Leather Hemp-Based System Unused (49435Hermes Ladies Quick Sneakers Leather 38 Beauty Products (536376024Bottega Veneta Suede Pumps Unused Goods Shoes (4687New Authentic JIMMY CHOO Rain boots Black edithflat-tpz-blk WOMEN's Gift , Hermes Paris Loafers Moccasins For Women, Leather Bp (90725 , Man's/Woman's Hermes High-Heeled Suede 35 22.5Cm (51239 Not so expensive Orders are welcome Different styles , Gentleman/Lady Hermes Loafers (93893 New varieties are launched the most economical fineMan's/Woman's Hermes Loafers (93892 Good world reputation International choice a lot of varietiesHermes Ekusuriburisu Leather Low-Heeled Pumps 35 12 42740 (94223 , Bottega Veneta Sneakers Intorechato Wo 35.5 Shoes (117667 , Gentleman/Lady Hermes Sandals (92054 durability Sales Italy General product , Gentlemen/Ladies Hermes Sandals (92055 Fashion pattern Brand Exquisite workmanship , Hermes Logo High-Top Sneakers 38 Suede Ladies (53856Men's/Women's Fendi Leather Colorful Line Boots (17024 durability Order welcome Immediate deliveryGentlemen/Ladies Hermes Sandals (92053 sell Sufficient supply The first batch of customers' comprehensive specificationsMan's/Woman's Hermes Heel Shoes 37 (53325 Selling Year-end sale Good qualityGentlemen/Ladies Hermes Sandals (92052 service Brand Different styles
    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c ->Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c -
    90s Vintage Dr Martens Crocodile boots US 5 doc 1460 8-eye shoes croc pascal uk3 , YSL Tribute Heels Vegeta Caramel Size 36.5Stuart Weitzman Flippy Three-Strap Ballet Flats, Galvan Metal MirrorSize 12 Women's Taupe Leather Point Toe Ballet Flats MADE IN SPAIN big shoes , TORY BURCH Patent Leather Ballet Flats SZ 6.5 Lot Of 2MIU MIU by PRADA nude shoe platform Sandals 39 9 AUTHENTICL.K. Bennett 37.5 7.5 blue black metallic Manila NWB Block Pumps Sold OutVALENTINO Orange Patent Rockstud Sandals 65, Size 38 8 ~ Gladiator glam! , Chaco Z2 Black Toe Loop Hiking Trail Water Sport Sandal Women's size 10Thierry Rabotin Wilton Sandals - 38EUR/ 8US - Beige , Nike Nikelab Zoom Flight 95 Men's sneakers 941943 600 Multiple sizesNIB Asics Men's S613N.9645 FuzeX TR Cross Training Shoe Grey Size 9.5Brooks Men's Levitate Blue/Silver/Black 11.5 D USGentleman/Lady NIKE PRESTO BR Size 37,5 (5Y) High quality and low overhead Upper material Good quality , Nike SF Air Force 1 MID Men's Size 9 Shoes 917753-400 Obsidian Suede NEW IN BOXAdidas Originals NMD R1 Primeknit Lush Red/Core Black. Size US9.5/ , Rare original deadstock 1990 Air Jordan 5 black/metallic US 9.5 OG , Rocky Men's 11" Original Ride Composite Toe WPF Insulated Western Boot-RKW0134Dansko Men's Viktor Flat, Black Milled Nubuck, 41 EU/7.5-8 M US , NEW! ADIDAS QUESENCE CQ2130 NAVY BLUE, SCARLET RED & GREY TWO e1Shoes Nike Air Max Siren Print 749815 018 Man Running Limited Moda Grey fashionVince. Men's Pollock Suede Leather Loafers GG8 Graphite Size 11M $395Stubbs & Wootton Chocolate Suede Gent's Slippers w/ Running Fox Sz: 12VANS Era (Eley Kishimoto) Whopping Waffle/Marina WOMEN'S Shoes SIZE 6.5Nikelab Lunarepic Flyknit Running Shoes Women's Size 7.5 Grey 831112 100 NewMarc Ellis New York Black And White Leather Platform Sneakers Size 37 Italy/7 USNew Addias NMD_R1 W WPK BB2361 Size 6.5 , $450 BCBG MAXAZRIA Women MA-Valerie1 Knee High Boot Shoe, Grigio Kidsuede, US 10Man's/Woman's KS35 Galee Wide-Calf Dress Boots, Black Easy to clean surface delicate Modern mode , Vintage Adidas Hiking Boots Womens Climbing Brown Leather Vibram US 8 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c -

    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.

    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c -

    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
    Hermes Bp Metarize 28913 Ankle Strap (93719 Pumps Leather Bp (93719 9950c9c
    Athletic Shoes