Never miss an update

Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8

Item specifics

New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Brand: N/A
Never miss an update

Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8 -

    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8
    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8
    BIRKENSTOCK 043851 GIZEH Silver REGULAR footbed Birko Flor NEW , Gentleman/Lady Merrell Around Town Black Thongs Diverse new design New products in 2018 As of the latest modelBirkenstock Arizona Birko-flor Narrow Fit Womens White Synthetic Sandals , NEW Genuine Crocs Women Crocs Isabella Sandal W Black , ADIDAS BY STELLA MCCARTNEY WOMEN'S RUBBER SLIPPERS SANDALS NEW ADISSAGE W BL 712NEW EOS Grey Leather ‘Emin’ Wedge Heel SandalsFitflop Halo Caramel Womens Leather Sandals Flip Flops , Man/Woman Sol Sana Kumar Slide - Black Durable service Lush design Direct businessNaturalizer Neelie Womens Comfort Wide Fit Leather Strappy Sandals , New Top End Banquet Womens Shoes Casual Sandals HeeledNew Mollini Mystar Black Womens Shoes Casual Sandals HeeledNew Misano Zephyr Rose Gold Womens Shoes Dress Sandals Heeled[COUNTRY ROAD] NEW! SZ 41 [CR LOVE] trenery patsy pebble sandal 10 , Vionic Orthotic Women's Casual Kirra Sandal - WhiteAncient Greek Sandals -MEDEA- **UNWORN** Natural Leather Cutout Thong Size EU-37Vionic Orthotic Casual Florence Slide Sandals - Mint , Nike Wmns Jordan Modero 1 I Black Women Sports Sandals Slides Slipper AO9919-004 , Swedish Hasbeens Braided Sky High, Womens Heels Sandals, Beige Nature, 41 EU , Gladiator Women Rhinestone Strap Flip Flop Sandal Flat Beach New Shoes All AU SzFitFlop Aztek Chada Toe-Post Devon Blue Sandals , ANCIENT GREEK SANDALS - Zoe Sandals in Natural - BNWOT Sz / US 9.5 , Men's/Women's robert clergerie PASTRO HEELS womens durable The highest quality material Recommended todayMen's/Women's Dr.SCHOLL'S ORIGINAL WOOD SANDALS sell fashionable Very practicalAndacco Mission Womens Comfortable Flat Leather Sandals Made In Brazil , Robert Clergerie Black Slip On Leather Sandals, Size / AUS 6. Made In FranceJIMMY CHOO Beige Patent Leather Sandals, US 7NATURALIZER STYLISH BLACK LEATHER SANDALS - 'IMPULSE' - 7.5 - NEW - RRP: $139.95 , Gentlemen/Ladies Dr. SCHOLL'S ORIGINAL WOOD SANDALS Elegant appearance Good market Current shapeTREADS 1970's Retro Style Women's Sandals Shoes Red & Pink Suede Leather ,
    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8 ->Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8 -
    Kelsi Dagger Brooklyn Carter Women's black leather open toe booties sz. 6.5 , Nike SB Blazer Zoom Low XT US 9 Men sneaker pro SK8 Brand New skate/surf/sportGivenchy Men Tyson High Top Sneaker Size 45 , Man's/Woman's Air Jordan 8 Aqua US9.5 elegant Comfortable touch At an affordable price , Papillio by Birkenstock Lucy Florida Tabora Damask Slides Thongs Sandals SFBFranco Sarto Polina Espadrille Wedge Sandals, Light Blue, 9.5 W US , Aquatalia Emmaline Gold Womens Shoes Size 7 M Flats MSRP $395 , Lusso by Naot Women's Black Leather Shimmer Slip On Driving Mocs Size 8.5/9 USWomen Solid Color Open Toe High Heels Stilettos Elastic Fabric Ankle Boots Shoes , Womens 18cm White Shoes Stilettos High Heels Buckle Sexy Pointed Toe ShoesStuart Weitzman Sashamid Women's Slingback Heels Pumps Pyrite Nocturn Fabric 8 , Badgley Mischka Sadie Heels - Women's Size 9 - WhiteAdidas Kanadia TR Trail Running Shoes Women's Size 8.5 G24817 , Gladiator Celebrity Womens Sandal Rhinestone Boots Clip Flop Shoes Silver US12.5 , New Mens Nike Free Train Virtue Run Running Shoes 898052-401 Sz 9.5 college navy , Vans Chima Ferguson Pro (Reptile) Khaki Men's Skate Shoes Size 8.5 , Nike Air Jordan SPIZIKE TORO BRAVO FIRE RED WHITE BLACK CEMENT GREY 315371-601 8PUMA Mens BMW MS Drift Cat 7 Sneaker- Select SZ/Color.Adidas Consortium x Sneaker Politics Gazelle PK Mardi Gras | BY2831 | size US11 , Nike Air Zoom Spiridon '16 Mens 926955-001 Black Mesh Running Shoes Size 11 , adidas Originals ZX Flux Running Shoes Torsion Support Sport Unisex Trainers UKVANGELO TUX-1 Dress Tuxedo For Wedding Prom Wrinkle Free White Patent Size 10.5M , Cole Haan Men's Suede Wingtip Oxford Burgundy Shoes Size 9M C11254L12 $230 , Adidas Tubular Shadow W Women's Casual Sneaker Onix/White BB8868New Balance WRL247YC B Light Pink & White Classic Lifestyle Fashion Sneakers NBRYKA NALU-W Womens Nalu Running Shoe- Choose SZ/Color.Women Reebok CN1745 Print SMOOTH Running shoes white grey sneakers , Nike Air Max 90 Stealth/Gold Dart-White 325213-039 Wmn Sz 9 , adidas Pureboost X TR 3.0 Women's Core Black/Carbon CG3528 , Rachel Roy Women's Rosmeri Tall Shaft Boots Brown Leather Knee High Size 6.5 M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8 -

    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.

    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8 -

    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
    Men's/Women's Taos Ziggie Black Taos Sandals Crazy Men's/Women's price, Sandals Birmingham special function Caramel, gentle 8637ee8