Never miss an update

PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e

Item specifics

Condition: :
An item that has been or previously. See the seller’s listing for full details and description of any imperfections.See all condition definitions- opens in a new window or tab
Seller Notes: Never miss an update PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e
PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e
$105 Retail Dolce vita Women’s Athletics Shoes, Beige/metallic/ Orange Size 9.5New Balance Womens 7 WCRZDLC2 Running Sneakers Shoes Sneakers GreenASICS GEL-Kayano 21 Women's Running Shoes (Size 9.5) Black Pop Pink T485Q 0245 , Man's/Woman's Skechers Yours Truly Slip-On Women's Shoes Exquisite (middle) workmanship Strong value Easy life , WOMENS BROOKS ADRENALINE 17 GTS RUNNING SHOES SZ 8 USED SNEAKERSNew Balance Women's WK706v2 Walking Shoe, Black, 7 2A USSperry Size 9 M SEASIDE PERFORATED White Leather Sneakers New Womens ShoesMizuno Women's 8.5 Wave Ronin 4 Red White Lightweight Mesh Running Shoes ~163 , Under Armour Micro G Limitless TR2 TM 1284865-037 Women's Training Shoes Size 9 , Asics Kayano 21 T4H7Q Womens Running Shoes Silver Pink US 8.5Saucony Run Pops Women's Running Shoes Size US 5 Lime Green S10334-1 New in BoxNEW Black Sequin Converse All Star Low Top Sneakers OX Unisex But Women Size 9BP Trist- PU Silver Metallic Faux Leather Womens Women's Sneaker 9 NIB , Reebok Women's Print Smooth Clip Ultk Track Shoe 5.5 B(M) US - NEW IN BOX , MINT Women's Salomon XA Comp 5 Gray Olive Hiking Trail Shoes 108672 MSRP $110 A8 , NIB Columbia Conspiracy Titanium Outdry Women Running Shoes Sz 10 - retail $135 , CONVERSE ~ WOOLRICH HI-TOP PLAID SNEAKERS - WOMENS SIZE 8US/39EU/6UK~EUCSalomon Womens X Ultra 3 GTX Athletic Shoe Size 7 NIB!Skechers Flex Appeal 2.0 Insights Walking Women's Shoes SizeNew Balance Womens 7 W1400BC6 1400 Running Sneakers Shoes Sneakers Black , Skechers Go Walk 4 Propel Walking Women's Shoes SizeNew Balance Women's LD5v5 Track Shoe, White Munsell/Flame, 9 B USWMNS Nike Air Max Command Women's Running Shoes, 397690 018 Size 8.5 NEW , NEW WOMENS ADIDAS NEO CLOUDFOAM SUPER FLEX RUNNING SHOES-10//3-TRAININGConverse All Star Chuck Taylor Womens Black High Top Shoes Sneakers Size 9.5 NWTAsics Gel-Cumulus 16 Women's Running Shoes Sneakers Sz 11 Turquoise T489N , Gentlemen/Ladies Asics Women's Jolt Ankle-High Running Shoe Wear resistant Optimal price Popular tide shoesSkechers You Walk Walking Women's Shoes Size , NEW Womens Under Armour UA All Around Knit Boots Size 9 ,
PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e ->PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e -
HUNTER Huntress Women's Tall Black Rain Boots Size 6 NEW W23179Dansko SZ 37 US 7 Prof Leather Clog Nurse Chef Comfort Black Shoe Womens , Jessica Simpson JP Steve 8.5 8 1/2 B 38 1/2 Gray Greige open toe pump shoe suedeCOLE HAAN AIR SOLE BLACK LEATHER ROUND TOE HEELS PUMPS womens size 7 B , Pre-owned: Miu Miu Coral Leather Open Toe Pumps Heels Size 38.5 8.5Cole Haan Women's Cheetah Print Pointed Toe Pump 2683 Size 7BNWB New Balance 900 Men's Running Shoe Size 10 (US) Gray with Red , Adidas Men’s Cream Campus Shoes 12 ART CQ2070Nike Air Max Zero QS 789695 001 Black/dark Grey Size 9 NEW IN BOX $$150.00 , NEW Men's Adidas Tubular Radial Shoes Size: 9 Color: Gray , Nike Roshe One Mens 511881-023 Wolf Grey White Mesh Running Shoes Size 10.5 , Adidas Originals Adizero Prime "Parley" in Grey/Blue DB1252 BNIB Free Shipping , New Balance MCRUZOC Mens Fresh Foam CRUZ Running Shoe, Rose Gold, 10 2E USNike Metcon DSX Flyknit 2 WP WOD Paradise Rainbow AH7843-180 Men's Size 14 , Adidas NMD_R1 Mens B76079 Sesame Chalk Pearl Mesh Boost Running Shoes Size 11 , Adidas Men's EQT Support Mid ADV Primeknit Shoes Sneakers Black/Yellow - CQ2999 , Air Jordan Future 3M Reflective 656503-011 black Size 9 US mens , Danner Men's Rain Forest Uninsulated Work BootMen's Fashion Casual Leather Moccasins Driving Slip On Loafers Flats Shoes NewTommy Bahama Men's Felton Wide Loafer - Choose SZ/ColorNew Mens Genuine Leather Moccasins Driving Oxfords Casual Loafers Shoes Boat Hot , Fashion Mens Metal Shiny Leather Slip on Loafers Dress Clubwear Oxfords ShoesSlowwalk made in Spain suede comfort shoe sneakers size 38 USA 8Man's/Woman's Steven Women's Dahlya Open Toe Booties Durable service buy Very good classificationNew Balance Women's Leather Walking #WW928WB3 White/Blue Medium (B) & 2E Wide , Vibram Women's V Running Shoe,Black/Yellow/Purple,40 EU/8.5-9 USNaturalizer Josey Taupe Pebbled Leather Buckled Riding Boots 7 NewARIAT HERITAGE LEATHER WESTERN BIKER RIDING WORK BOOTS ROPERS WOMENS 7.5 black , Gentlemen/Ladies Franco Sarto Women's Jubilee Ankle Boot Innovative design special promotion German Outlets , Pendleton Women's Heritage Tall Acadia National Park Boot in Black Sz 6-9 NEW ,
Will ETFs cause the next market crash?
ETF Watch - Jun 29, 2017
PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e -

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.

PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e -

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
PUMA Maitained Mihara Women Yasuhiro Multicolor Hidden Wedge Sneaker Women Sneaker US 8.5 Well Maitained 863758e
Athletic Shoes