Never miss an update

adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e

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
Features: Long-lasting leather and synthetic upper is stylish and supportiv, secure fit Style: Athletic
Size: 10-M US Shoe Size (Men's): 10-M
UPC: 605950826696
Never miss an update

adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e -

    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e
    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e
    HOKA ONE ONE VANQUISH 3 MEDIEVAL BLUE WHITE RUNNING SPORTS SHOES SIZE 9.5 MENSNIKE SUPREME DUNK FLYKNIT 917746 600 UNIVERSITY RED/WHITE-WOLF GREY MENS SIZE 9 , Globe Tilt Mens Wheat Leather & Synthetic TrainersNEW IN BOX HOKA ONE ONE MEN'S 7 INFINITE TRUE BLUE / ACID FREE SHIPPING , vintage reebok hostile low basketball sneakers mens size 14 deadstock NIB 1993 , Man's/Woman's PUMA Unisex Street LO SF Sneaker selling price Order welcome Don't worry when shoppingNike STEFAN JANOSKI MAX L Obsidian Black White 685299-401 (461) Men's Shoes , Nike Air Max Zero Breathe Mens 11 Sneakers Lemon Chiffon Yellow 903892-700New Merrell J12535 Bare Access Flex Knit Black Men's Hiking Shoes 8.5 US , Rare Nike Shoes Texas Longhorn Trainer 1.0 Cross Training Men's 10 Orange White , adidas Climacool Vent M Yellow Black Reflective Men Running Shoes Sneaker CM7398 , NIB Nike Air Jordan Rising High Cool Gry/Wht-Wlf Infrared 23 768931 003 SZ-US 13 , ASICS Gel-DS Trainer OG - Blue - MensLacoste Straightset 316 3 Cam Navy Mens TrainersNEW: ADIDAS ORIGINALS EQT SUPPORT ADV SHOES MEN'S SIZE 10 BB6777 Red/Green Color , New Balance Men's black leather walking sneakers shoes sz. 14 D (49)New Balance MSTROLB2 2E Wide Black Silver Men Running Shoes Sneakers MSTROLB22EMerrell Capra Bolt Leather Men's Hiking Walking Trail Sneaker Shoes Sz US 13 , Nike Mercurial Veloce FG soccer boots Blue Volt Pink Flash Mens NEW AUTHENTIC! , Adidas Climawarm ALL TERRAIN Running Shoes (CG2741) Athletic Sneakers TrainersNIB MENS SIZE 9 JORDAN LIFT OFF BASKETBALL SNEAKERS BLACK AR4430-016Saucony Freedom Iso Black Running Shoe's Men's US 9 (D3,28) , NEW BALANCE M1260GB7 Running Shoes, Men Sizes 11-12 (4E), Green/Black NEW! , Adidas NMD_R1 STLT PRIMEKNIT SHOES SKU CQ2387 Size 11Puma SF Slip On Ferrari White Rock Ridge Men Casual Shoes Sneakers 306118-02Gentleman/Lady jordan spizike Midnight Size 9.5 service auction Different styles and stylesNike Air Jordan Retro 10 X SHADOW Dark Grey Black Red 310805-002 Men Size 11.5Gentlemen/Ladies Men-039-s-Nike-Metcon-3-Training-Shoes-Grey-Blue-White-Sail-Size-18-852928-013 Adequate supply and timely delivery Beautiful appearance a wide variety of goods , New Nike Flyknit Streak Sz 4.5-10.5 Wolf Grey Black Volt Green Runner 835994-007
    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e ->adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e -
    Arnaldo Toscani 1097628_NUDE Loafers Women's - colour Brown AU , Demonia Ranger 318 Ladies Goth Punk Cosplay Boots Heel Knee Platform Buckles , Rocky 4EurSole Womens 5.5 6 36 M Nursing Clogs Shoes Blue Leather 3 In 1 RH003 , New ARA RED SUEDE Loafers Silver Buckle Germany Shoe 6 US / 3.5 GR MSRP $130 , New Womens Slip On Leather Mid Heel Summer Casual Shoes Fashion 4Colors Formal , CALLEEN CORDERO Antigua Brown Leather with Brass 9Mr/Ms V 1969 Italia Womens Sandal Special price discount price Non-slipSalvatore Ferragamo Women's Patent Leather Black Gold Heel Shoe Size 8.5 BWOMEN'S SANDALS SNEAKERS CROCS EVE SLINGBACK [204955 NAVY]Tommy Bahama Women's Seleena Flip Flop, Black, 7.5 M USBernardo Womens Olivia Gladiator Sandal Flat Brick Oiled Suede Size 7.5 M , BOHO Beach Womens Casual Slipper Flowers Solid Wedge Heels Patent Leather Shoes , Jordan Horizon Low Basketball Shoes 845098-006 Men Size 9 Black White , MENS OSIRIS NYC 83 VULC SKATEBOARDING SHOES NIB BLACK GREY BLACK , New Nike JORDAN ACADEMY Mens Basketball Shoes Gym Red 844515 600 Sz 12adidas Superstar Mens Trainer Shoe Met Silver Size 7 - 10.5 New RRP /-New Puma drift cat 5 ultra mens shoes Peacoat blue White 362288 06 men's shoe , Nike Air Hoop Structure FA LE size 10.5 Sneakers BRAND NEWMerrell Moab 2 Mid GTX Gore-Tex Grey Blue Men Outdoors Hiking Shoes J06067New HYTEST 00938 6" Waterproof EH Steel Toe 7W Gold Leather Work Boots, (H19J) , Mens Fashion Slip On Mens Driving Leather Loafers Casual Shoes Moccasin US Size , Europe Mens Brogue Retro Italy Double Buckle Dress Formal Low Heels Casual SHoesMens Slip on Loafers Buckle Genuine Leather Pointy toe Dress Formal shoes#SIZE , R.M. WIILLIAMS black leather "Yearling" chelsea boots size 8G / 41,5 , NIKE WOMENS AIR HUARACHE CITY SZ 6 NEUTRAL OLIVE BLACK GUM BROWN AH6787 200New Under Armour 1299203 962 Post Canyon Mid Gray Women's Trail Boots 11 USMizuno Wave Inspire 12 Womens Crossrunning Shoe (B) (08 Dazzling Coral) , Puma Fenty x Rihanna Espadrille Puma Black/Puma Black/Puma Black 36768501 001J.CREW Womens 8 Black Leather Pull On Ankle Wrap Strap Knee High Riding Boots , Dolce Vita Wos Boots Ankle US9 Black Leather Zip Buckle Heels Moto Studded 401 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e -

    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.

    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e -

    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
    adidas Shoe,Black/Regal Men's BTB Low M NBA Lakers Basketball Basketball Shoe,Black/Regal Purple,10 M bac8d2e
    Athletic Shoes