Never miss an update

SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9

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
Material: Leather
Style: Athletic Sneakers Modified Item: No
Color: Black Country/Region of Manufacture: Italy
Brand: Sparco
Never miss an update

SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9 -

    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9
    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9
    Nike Men's Zoom All Out Low 878670-302 Size: 11 , NEW Adidas Men's Tubular Shadow AQ0613 Mystery Brown Casual Running Shoes , Nike Air More Money. Mens Sizes. “Wolf Grey Island Green-Black”. AJ2998 003Mr/Ms ADIDAS NMD C2 BLACK BY3011 Comfortable feeling real Reliable reputationNike Flyknit Racer Volt Size 7 Men’s Running Shoes Black/Volt/White 526628 011Men's/Women's Nike Men's Lunar Caldra Training Shoe Various styles Low price List of explosionsMen's/Women's Nike Men's Lunar Caldra Training Shoe Fashion pattern Fine art various kinds , Vans x Nintendo DONKEY KONG Shoes (NEW) Authentic 8-Bit FREE SHIP Mens Size 4-11 , Men's/Women's Nike Blue Roshes High security Win the praise of customers Shopping promotion , adidas Crazy Explosive 2017 men basketball shoes | Art. BY4460Nike Magista Obra SG Pro ACC Soccer Cleat Men's Size 10Adidas Terrex AX2R Men's Walking Outdoor Shoes CM7725NEW MEN'S COLUMBIA Birkie Trail Hiking Shoe27 New Nike Terra Sertig Boots Black Hiking Climbing Shoes 916830 002 Mens 8-9JORDAN B.FLY MEN Size: 10.5 GYM RED BLACK RUNNING NEW RARE BASKETBALL COMFORTNIKE AIR MAX 2016 PRM MEN'S SHOES ASST SIZES NEW IN BOX 810885 001Mens Nike Lupinek Flyknit Sneakerboots Boots Sneakers New Oreo 862505-001 sku AANIKE CLASSIC CORTEZ SHOES MENS LEATHER OG SNEAKERS - MIDNIGHT NAVY BLUE , REEBOK WORKOUT PLUS ALTERED DV5243 White/Red Shoes | Alter the Icon c1 , NIKE AIR ZOOM CAGE 3 HC Sz 10 (918193-116) (TENNIS)WHITE/BLACK-UNIVERSITY RED , Nike Air Jordan 4 Retro “Alternate 89” Style Size 12.5 , Nike ZOOM MeriWether Sneakerboot Shoes Limited 616215-041 Men's Sz 8-10 MEN'S SHOES SNEAKERS NIKE TENNIS CLASSIC CS SUEDE [829351 100] , SALE AIR JORDAN GENERATION 23 COOL GREY WHITE GOLD SZ 8-14 NEW AA1294 004 , Nike Air Jordan 20 3/4 XX White Metallic Silver Black Deep Granite LaserNike LEBRON 9 LOW "FLORIDIAN" SIZE 9.5 , Nike Lunarepic Low Flyknit Deep Royal Men's Running Training Shoes Size 10.5Nike Men's Jordan 88 Racer NEW AUTHENTIC Black/Anthracite AV1200-001 , MEN'S SHOES SNEAKERS ADIDAS ORIGINALS TUBULAR SHADOW [CG4562] ,
    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9 ->SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9 -
    Chelsea Womens Shoes Pumps Buckle Studded Real Leather High Top Ankle Boots Hot , Man's/Woman's BEARPAW Women's Boshie Winter Boot New market Good market Known for its excellent quality , FREEBIRD BY STEVEN CROSBY CRSBY BIKER MOTO ENGINEER BOOTS , New Keen Destin Low Ptc Mens Soft Toe Wide Fit Shoes , Tommy Hilfiger Beach 15 Toe post Beach Sandal Sandals Beach Shoes Size 42Vans SK8 Hi Platform 2 Black White Womens Suede Trainers , Ladies Vagabond Amina Sassy Chic Biker Flat Work Low Heel Ankle Boots All SizesEl Naturalista N52 Stella black Spanish-made slip-ons for women sizes Eu 37, 39 , Pleaser Pink Label Womens Anna01/Spu Ballet Flat 13US- Pick SZ/Color. , SAS Free time Tripad Comfort Walking Shoes Mocha Womens 10 Medium New , BALENCIAGA D'Orsay Heels Pumps Womens Shoes 37 7 Black Leather Pointed Toe ParisGentleman/Lady Heel Nine West Nala Black selling price a variety of Perfect processing , MOT-CLe 3947 Black / Burgundy Suede / Leather Pumps 40 / US 10 , Men's Nike Free RN 2018 Black Crimson Grey Running Shoes 942836-005 Size 7 , Scarpa Uomo Marrone Scuro/Blu Asics Onitsuka Tiger Sneakers Man Dark Brown/BlueReebok Curren$y x Club C 85 Jet Life JL Currensy Hemp Primal Green BS7338 Sz 7New Balance 990 National Parks Blue/Red M990SB Men's SZ 13NIKE SB DUNK HIGH PREMIUM SB "THRASHIN" 313171-141 white/chlorine blue Size 10.5 , Man/Woman ADIDAS NMD_R1 D96617 DUCK CAMO Outstanding features New in stock Sales online store , ML2017MB New Balance Men 2017 Deconstructed ML2017MB brown whiteADIDAS YEEZY BOOST 350 V2/TRIPLE WHITE/MENS SIZE 7/NBWB/NWB , Nike Kobe 8 SS 'Christmas' XMAS VIII size 14New Men's KENNETH COLE LUG-XURY SUEDE BOOT (9.5 m) , New Summer Men's Casual Fashion British Loafers Driving Slip On Moccasins ShoesMen/Women Puma Men's Basket Classic Patent Sneakers superior In short supply Excellent stretchingMens Slip On Tassel Loafers Dress Formal Shoes Flats Oxford Suede Wedding VelvetAcorn Men's Slouch Boot - Grey Ragg Wool - XL1808 adidas ADILETTE CLOUDFOAM PLUS LOGO Men's Slides Slippers B44870Bella Vita Women's Ronan Boot Black 7 M US , Jimmy Choo Womens Boots Size 38, 8 Dark Brown Pointed Toe Leather ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9 -

    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.

    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9 -

    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
    SPARCO Racing Mens Mid SPARCO Top Sneaker - Black Mens Black Suede Leather - YAS-MID_NEROFLUO 052dab9
    Athletic Shoes