Never miss an update

SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4

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
Style: Men_Footwear_Shoes MPN: 10164107534
Never miss an update

SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4 -

    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4
    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4
    Amali Men's Perforated and Embossed Driving Moccasin Loafer Styles Rila, ReganMens Dress Business Leather Shoes Slip On Low Top Shoes Multi Color Casuals 5-11Mens Real Leather Shoes Fashion Non-slip Loafers Wedding Party Formal DressBritish Style Mens fashion slip on velet party Dress formal prom Comfort shoes 9Embroidery Floral Mens Clubparty Slip On Genuine Leather Business Formal Shoes , Man's/Woman's Apex Men's LT610 Oxford Selling fashionable Brand feast , Men's Slip On Platform Round Toe Real Leather Loafers Sneaker SHoes Black WHiteMens British low heel Handwork Real Leather Formal Wedding Dress Shoes Oxford SZ , Mens Casual British Genuine Leather Loafers Nightclub Occident Slippers Mules szTwisted X Boots Men's MCW0002Mens Tassel Oxford Slip On Business Casual Moccasins SHoes Suede Comfortable , Apex Men's Ambulator 2 Strap Active WalkerMen Real Leather Colorful Loafer Slip on Gommino Dress Party Driving Casual ShoeMen Slip On Loafers Driving Floral Embroidery Flats Shoes Casual Suede Party hotMen's Real Leather Slip On Moccasins Embroidery Loafers Animal Printed Shoes SZApex Men's FitLite Natural Knit Sneaker , Vans SK8 Hi Black Black Suede Unisex Suede Trainers BootsAmali Sequin Embroidered Smoking Slipper Men's Dress Shoes , Fashion Show New Men Nightclub Loafers Crystal Casual Real Leather Driving ShoesBritish Style Mens Pointed Toe Slip On Loafters Shoes Leather Vintage Outdoor SzMan/Woman Adidas POD-S3.1 US 9 Brand New Online Shopping Online Don't worry when shoppingAsher Green Men’s Tonal Crystal and Studded Suede Smoking Slipper, Slip On... , Karl Lagerfeld Men's Black Leather Kent Fashion Sneakers Shoes Sz 8.5 M - 232742 , Jacques Loup Moratti Yacht Black Leather Men's Shoes Size 10 1/2 , mens stylish leather square toe real fur slip on loafers shoes dress Dress NewBusiness Shoes Loafers Slio On Square Toe Dress Shoes Retro Real lLeather Casual , British New Mens Rhinestones slip on Formal party Dress Buckle Driving shoes US , New Mens Leather Casual Shoes Fashion Board Round Toe Flats Slip On Metal DecorMen's Multicolor Stried Oxfords Formal Dress Shoes Slip On Moccasins Loafers New ,
    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4 ->SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4 -
    STEVE MADDEN Brand Jaane Tan Leather Ankle Boots Size 7 NEW , Easy Spirit Womens Roldana Leather Closed Toe Classic PumpsJones of New York NJFarady Leather Shoe Wedding PromNew $80 Womens Size 7.5 MADDEN GIRL 2-Tone Stiletto Shoes Wedge Sandals 5" Heels , Sexy Platofrom Stilettos Buckle Strppy Ladies Womens Pumps Party Porm Shoes SizeRupert Sanderson Mikie Size 37 Black/Green Open-Toe Leather Heels SandalsMiu Miu Silver Glitter Round Toe Pump Platform Sz 7/37 Heels , Free People Womens BUTTERFLY EFFECT MULE Fabric Square Toe Mules , New sz 6.5 / 36.5 GIVENCHY Leopard Leather Classic Point Toe Pump ShoesVictoria's Secret Pink Double Strap Sport Slide Sandals Pink Metallic Small NWTBearded Collie Dog Print Running Shoes For Women-Free Shipping , NEW ADIDAS ORIGINALS RITA ORA SUPERSTAR 80S SNEAKERS TRAINERS LADIES UK SIZE 6.5Women's Vans Sk8-Hi Black / Pewter Checkerboard VN 0D5IBPJ Size us 6.5-M NWOBCole Haan Women's Gabby Sandal - Choose SZ/ColorNike SB Dunk Mid Pro Men's Skateboarding Shoes Wheat Cappuccino AJ1445 200Mens Nike Kyrie 3 Size 10 (852395 400) No Box Top , Gentlemen/Ladies 2007 Air Force 1s sz13 excellent quality Sufficient supply Brand feast , Under Armour Curry MVP Pack Back To Back B2B 100% Authentic W/Receipt , Nike Air Jordan 1 Retro High OG Royal US 8.5 Authentic 555088-077 , Men Pumps Booties Block Casual Loafers Shoes Vogue Brown Slip on Business FormalMen Suede Leather High Top Zipper Chelsea Retro Mid Cuban Heels Ankle Boot ShoesVintage Mens Leather Carved Brogue Shoes Dress Casual Fashion Slip On Loafers SZReebok ZQuick TR 3.0 M48855 Black Training Running Shoes Medium (B, M) Women , Women's Puma Leadcat COOGI Slide Sandals Island Paradise/Puma Black 36803801 001 , Nike Air Force 1 '07 Premium Women's Shoes White/Summit White 616725-104 Sz-9.5**LATEST RELEASE** Nike Run Swift Womens Training Shoes (B) (601) , Men's/Women's adidas Women's Microbounce 2008 Running Shoe fashion Upper material Seasonal hot sale , Henry Ferrera Ambiance-100 Pewter With Black Belt Tall Pull On Rain BootsNine West Women's Batoka Suede Ballet Flat - Choose SZ/color , COLE HAAN WOMENS SUEDE GREEN BOOTS SHOE SIZE 6 B ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4 -

    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.

    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4 -

    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
    SPRING AINSLEY-B STEP AINSLEY-B - AINSLEY Size: Size: - - Color: 3893ec4
    Casual Shoes