Never miss an update

New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Brand: ASICS
Style: Running, Cross Training US Shoe Size (Women's): 7
Width: Medium (B, M) UPC: Does not apply
Never miss an update

New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90 -

    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90
    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90
    Aerosoles Womens Girl Talk Ankle Strap DOrsay Flat Nude Faux Suede/Faux LeatherNike Force Sky High Hidden Wedge Sneakers Shoes Women Size 9 629746-001Onesole Women's Feeling Blue Triple Combo MulticoloredConverse Women's Chuck Taylor All Star Madison Ox Black White White Sneaker , CLARKS CARLETA PRATO BLACK LEATHER 26120406 WOMENS US SIZESNEW Puma Ripstop Basket Sneakers Size 8 Mens 9.5 Womans Ice Cream YellowPUMA Clyde Frosted Women's Rock Ridge Size 9 Glacier Gray Sneakers 36578902Women's New Balance 890V2Runners (W890KB2) - Blue/White , Man/Woman Nike LeBron soldier ix size 6.5 Exquisite (middle) workmanship Highly praised and appreciated by the consumer audience Brand feast , Women Reebok Work N Cushion Oil Resistant Duty Proof Tested V46974 Black New , ADIDAS TUBULAR INVADER STRAP women SNEAKERS (8M, LT/PAS BWN)Ladies sz 6.5 Reebok RB457 Arion Purple Oxford Composite Toe Work Athletic ShoeVANS SK8-Hi MTE Black Woven Chevron Leather Sz Women 9.5/Men 8 , Talbot Sneaker, Jenny 6, stone and strawberry, Shoe size 9.5M , CLARKS EVERLAY LEIGH BLACK SUEDE 26127726 W WOMENS US SIZES , Rialto Women's Campari Espadrille Wedge Silver Metallic Polyurethane EspadrillesBELLES BASKETS SNEAKERS NOIRES "Y 3 YOHJI YAMAMOTO" PT 38 QUASI NEUVES , NEW Madden Girl Adorree High Top Black Sneakers Shoes sz 6 , Vans SK8 Hi Slim Tropical Leaves Black Men's 4 Women's 5.5Women's New Balance 870v2 Runners (W870PY2) - Grey/Pink/Black/White , Converse Women Unisex Chuck Taylor All Star High Shearling Shoes Dark Size 7Converse All Star Sangria Velvet Studs High Top Sneakers Size 6 M Women's NWOB , New K Swiss 95618 070 Aeronaut HighRise Grey / Black Women's Casual Shoes 8 US , CONVERSE CT DBL UPP HI MEN SIZE 8.5M WOMEN SIZE 10.5M NWB $70.00 UNISEX , Saucony Natural Women Lime & White Walking Fabric Sneakers Solid Size 8.5-MAdidas Element Race Running Shoes (B44894) Women Training Sneakers TrainersNIKE FS LITE RUN 3 gray mesh athletic running sneakers sz. 7.5 (38.5) $110 , CLARKS ARIA MARYJANE M BLACK LEATHER 26117024 M WOMENS US SIZES , VANS SK8 HI TRUE Vintage SUEDE SLIM WHITE Ivory Shoes Mens 8 Womens 9.5
    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90 ->New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90 -
    New Christian Dior Black Suede Peep Toe Zip Ankle Bootie Heel Shoes sz 9 / 39 , Jeffrey Campbell Ibiza Last Dog Collar Ankle Open Toe Lock Buckle Sparkle Heel 8PLEASER ADORE-708MG Black Mini Iridescent Glitter Ankle Strap Platform SandalBCBG "Jodie" Platforms 8 M Gray/Croco Synthetic New with Box , NEW J.CREW GLITTER SCALLOPED HEELS IN METALLIC GUNMETAL, F8606, SIZE 7, $248 , $900.00 CHRISTIAN DIOR PINK SLINGBACK SUIDE SANDALS SZ 6 MADE IN ITALYDerek Lam Women Shoes Sz 9 9B Red Stiletto Heels Loafers BurgundyJUNE AMBROSE FLORAL PRINT EMBELLISHED RHINESTONE SANDALS SIZE 11 M - NEWBernardo Miami Fringe Wedge Sandal - Women's Size 9.5M, Black Leather , Doberman Pinscher Halloween Print Running Shoes For Kids/Women-Free ShippingReebok Classic Leather Shimmer Womens Light Pink Suede Trainers , Nike Roshe Two 2 SE Hasta/Anthracite-Ghost Green 859543-300 Men's SZ 9adidas Box Hog 2 Boxing Shoes - SS17Nike Shox Gravity White-Black Men's Running Sneakers 9.5 (New)Camper Shoes Mens Camper Beetle Ankle Boots Leather Sneakers NEW , Nike Lebron 9 Swingman Size 11 2011 , PUMA BLAZE OF GLORY BOG HIGHSNOBIETY RONNIE FIEG KITH HS RF TALE TWO CITIES 10.5100% Authentic Bape Bathing Ape Shoes Size 13 OG Pink Brown Bape Sta Rare Find , Rocky Brown Leather Waterproof Gortex Governor Slip Resistant Work Boot RKYK001 , CONDOR Men's Colorado Steel Toe Full Grain Leather Work Boot, Black, 11 E USVans Men's Atwood Lite Mixed Canvas Shoes Drizzle Grey/White/Blue , Johnston & Murphy Passport Made in Italy Black Leather Cap Toe Oxford Sz 10 M GCNIB $995 KITON NAPOLI Sky Blue Washed Canvas Low-Top Sneakers US 8.5 ShoesClarks Wallabee Oxford Mens - Choose SZ/Color. , Saucony Women's Type A5 Running Shoes, 10144-5 ( Size 6 M )Men/Women Easy Spirit Women's Punter Ideal gift for all occasions modern Valuable boutiqueEarthies Women's Roma Gladiator Sandal Light Grey Metallic Suede Sandals , Roces Women's 623 Inline Skates R200 Silver/Pink Skates , Mix No 6 Womens Vincee Almond Toe Ankle Fashion BootsGentlemen/Ladies DIESEL Women's Boots Size 36 Reputation first a variety of professional design ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90 -

    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.

    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90 -

    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
    New! Asics Women's Women's GEL-Preleus T480Q Running Shoes Shoes T480Q Blue/Yellow Size 7 176A 90e8c90
    Athletic Shoes