Never miss an update

Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219

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
UPC: 0883799384717
Style: Sport Brand: Saucony
US Shoe Size (Men's): Multiple Variations Model: S2866-229
Size Type: Regular MPN: S2866-229
Material Type: fabric
Never miss an update

Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219 -

    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219
    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219
    PUMA 10402101 Mens Evospeed 17.4 IT Soccer Shoe- Choose SZ/Color. , Skechers Men's Go Walk Max-54602 Sneaker - Choose SZ/Color , Reebok Men's Fury Adapt W Fashion Sneaker - Choose SZ/ColorSkechers Sport Mens Flex Advantage 2.0 the Happs Oxford- Pick SZ/Color. , Reebok BD4902 Mens CL Nylon Fashion Sneaker 11- Choose SZ/Color. , Reebok BD1554 Royal Nylon Fashion Sneaker- Choose SZ/Color.ASICS Men's Gel-Lyte Evo NT Retro Running Shoe - Choose SZ/Color , Men's/Women's Reebok Men'S Classic Leather Sneaker fashion special function Brand feastPUMA Mens Tazon 6 Wide Fracture FM Sneaker, Black Black, 11 W US , adidas BC0019 Mens CF Superflex TR Trail Running Shoe 9- Choose SZ/Color.ASICS Men's Gel-Contend 4 Running Shoe Carbon/Silver/Orange, 12 DM US , Etnies Barge LS Skate Shoe - Choose SZ/Color , Reebok Mens Work N Cushion 2.0 Walking Outdoor Sports Shoe Athletic boots 13 4ESkechers 51272 Sport Mens Cross Court Training Open CounTrainingy , Adidas X 15.1 FG/AG Leather Soccer Cleats , DC Men's Pure High-top Wc Tx Se Skate Shoe, - Choose SZ/ColorEtnies Cyprus SC Sneaker - Choose SZ/Color , Reebok BD4902 Mens CL Nylon Fashion Sneaker 12- Choose SZ/Color. , Skechers Performance Men's Go Walk 3 Unwind Slip-On Walking ShoeBlack10.5 M USPUMA Men's ONE 17.3 FG Soccer Shoe, - Choose SZ/Coloradidas Originals Men's Busenitz Vulc Fashion Sneakers - Choose SZ/Color , Reebok Men's CL Leather Spp Fashion Sneaker - Choose SZ/Color , K-Swiss 05659-213-M Mens Court Pro II SP P Cmf Sneaker 11- Choose SZ/Color.PUMA 36361302 Mens Smash Deboss Fashion Sneaker- Choose SZ/Color.Skechers 52185W Sport Mens Flex Advantage 2.0 The Happs Oxford , PUMA 36448301 Mens Suede Classic Badge Iced Fashion Sneaker- Choose SZ/Color. , DC Men's Pure Skate Shoe Black/Pirate Black 9.5 M US , ONEMIX Slip-On Running Shoes Men - Lightweight Casual Sports Cushioning Sneak... , Skechers Sport 52398 Mens Depth Charge Trahan Fashion SneakerM ,
    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219 ->Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219 -
    wh833 ALBERTA FERRETTI shoes gray satin women boots , Muck Boots Navy/White Stripe Women's Cambridge Mid Boot - Size 11 , Gentlemen/Ladies Dolce & Gabbana Leopard Print Shoes Easy to use fashionable Popular recommendation , Rieker 94730, Women s Ankle Boots, Grey Graphit Basalt Stein 45 , 6.5 EU , Man's/Woman's Demonia EMILY-302 Crazy price, Birmingham Won highly appreciated and widely trusted at home and abroad Exquisite processing , Shellys of London Pink Satin Edgar Bowed Slip Ons Womens Size M , SPRING STEP TENDER-PUR - TENDER Size: - Color: , Ralph Lauren Kailee Leopard Pumps Size 5Womens Platform Wedge Super High Heel Peep Toe Sandals Nightclub Slippers hot x2 , Salvatore Ferragamo Sz 8.5 AA Black Lizard Toe Medium High Heel Shoes Pumps , Anne Klein Women's Henrika Peep-Toe Pumps Light Gold Leather Size 10 MCLARKS Women's Sashlin Nolte Heeled Sandal - Choose SZ/Color , Womens Flip Flops Crystal Flower Buckle Flats Shoes Summer Sandal Slinback ShoesWomen's Worishofer Comfort Slide On Sandal Black 251HAFLINGER Grizzly Torben GZL Graphite GRAY US 8 Slippers scuffsAdidas Size 12 Baseball Cleats Energy Boost Icon 3.0 Mike Moustakas PE Moose , Nike Men's Air Max Invigor Running Shoes White/ Black (749680 100)SUPRA ELLINGTON STRAP DARK GREY BLACK 08057-019-M MEN SHOES SIZE 8 & 9 , Adidas Ultra Boost Uncaged Black White BB3900 new men running primeknit no boxNike Air Jordan 1 Pinnacle 705075 205 Size 11Allen Edmonds Nashua Black & Brown Casual & Dress Loafer Slip on 8.5 D , Asics Whizzer Lo White Green Sneakers 39.5 HY429-0187 Shoes Onitsuka Tiger Sport , Fabulicious Women's Belle 315 Ankle-Strap Sandal Black Patent/Black SandalsNike Women's Roshe Two Flyknit Shoes GG8 Black/Black 844931-010 Size 7.5New Puma Womens Rhianna-Inspired Mesh Fierce Cross Training ShoeNike Metcon 2 White/Night Maroon-Pink Blast-Black 821913-106 Women's SZ 6Nike Air Max Sequent 3 Camo Womens AJ0005-101 Grey Punch Running Shoes Size 5.5 , adidas AQ5366 Performance Womens Gymbreaker Bounce Training ShoeYellow Submarine Customized Cool Girl's Canvas Martin Boots for Women Black , Larry Mahan Gray Leather Western Roper Boots - Women's Size 7.5/38 Size 2161
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219 -

    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.

    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219 -

    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
    Saucony Originals Originals mogochinese-29999 S2866-229 Saucony Jazz Lowpro Sneaker- Choose SZ/Color. d194219
    Athletic Shoes