Never miss an update

Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e

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
Brand: Converse
Season: Autumn/Winter Color: Blue
Size Type: Regular Country/Region of Manufacture: China
Style: See description Gender: Women's
Theme: See description Model: BO-158947C_ATHLETIC_NAVY_MASON_TURTLEDOVE
Never miss an update

Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e -

    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e
    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e
    Men's/Women's CLASSIC LEATHER W BLANC Beautiful design First grade in its class wonderfulMen/Women CANDICE COOPER Shoes 252505 BlackxBrownxGreen 36 Complete specification Medium cost Popular recommendation , Kris Chandler's Beautiful Cat Print Sneakers - Free Shipping , Mr/Ms 530 CUA GRIS BLANC BLEU Charming design fashionable Excellent workmanship , Shoes Club C 85 Tonal Nbk Reebok Grey Women BS9612 , Converse Women CTAS Dainty Canvas 553374C Sneakers Pink Blush US 5 RRP $90 BCF74 , New Balance NB 420 REVLite Women's Lifestyle Sneakers Shoes Gray WL420CRU SizeMen's Running Shoes Insole Light Soft Comfortable For Outdoor Hogging WalkingNEW adidas Climacool 1 W BB5303 Womens Shoes Trainers Sneakers SALEWomen Striped Platform Leather Fashion Athletics Sneakers Trainer Shoes High Top , Mr/Ms DIESEL Shoes 593016 Blue 38 Queensland At a lower price unique , Corgi Print Customized-White Running Shoes For Women-Designed By Christina JenseJEFFREY CAMPBELL WOMAN SNEAKER SHOES WITH WEDGE CASUAL FREE TIME ZOMG FLORAL , DT20 BOTTICELLI LIMITED US 7 shoes black suede patent leather women sneakeCustomized Snake Print-(Black) Running Shoes For Women-Express Shipping-DesignedCorgi Dog Print-(Black/White) Running Shoes For Women-Express Shipping-DesignedConverse BO-M9622C_NAVY sneaker Women's - colour Blue US , * NEW * Asics Gel Exalt 4 Mens Running Shoe (D) (9790)Shoes Go Walk 4 Edge Skechers Grey Women 14930-GYLB , Fabric Flyer Runner Trainers Womens Blk/Charcoal Sneakers Sports Shoes Footwear , FILA RAY New Disruptor Unisex Sneakers Athletic Shoes - White/Navy(FS1SIA3066X)Shoes Go Walk 4-Gifted Skechers Blue Women 14918-NVGY2Star Gold IT Shoes Women's Smooth Leather 40 High-Top RoseSloughi Dog Print Slip Ons For Women-Express Shipping , NEW Nike Air Max Thea SE 861674-901 Womens Shoes Trainers Sneakers SALE , 2Star Gold IT Shoes Women's Smooth Leather 37 High-Top Rose , Size 5-9 New Pink Lightweight Trainers Fitness Gym Sports Running Womens ShoesConverse BO-155159C_FOSSIL_BLOCK_TURTLEDOVE Women's sneaker - colour Brown US2Star Gold IT Shoes Women's Smooth Leather 36 High-Top Turquoise
    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e ->Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e -
    02-3995 Bed:Stu Manchester II - Women's Tan Boot SZ 7.5Jeffrey Campbell suede Presley studded cowboy Boots Sz 6.5, fits 7 , FW13 PUMA NR 39 MID JR SHOES GIRL WOMEN'S SHOES 357204 002 LEATHER , Hummel Womens AARHUS Classic Low Trainers WhitePeacoatFiery RED 9824, 6 UK , Safety Shoes woman working protection Security BASE ATTITUDE , Moshulu Jelly Baby Slouch mid-length Leather Boot's Navy Size BT03 50 , Vince Camuto Jeneve Strappy Dress Sandals 765, Black Suede, 7 US / 37 EUNEW Nicholas Kirkwood Navy Velvet/Patent Beya Loafer -Size 38.5 - RRP$599 , Prada Black Leather Size 37.5 Flats Prada Black Leather Size 37.5 Flats Pradasam edelman 8 Heels Women's Metallic Gold Heels EucBruno Magli Black Leather Open Toe Chain Embellished Platform Pumps 38Comfort leather Stylish slides - Just Bee Shoes - CalimoMerrell Mens Low top Waterproof Athletic Support Hiking Trail Shoes Size 11Victorian Trading Co Black Silk Velvet Mules Shoes Sz 10 , Ecco Golf Cage EVO Boa Golf Shoes - Men's Size 6/6.5, Black , Reebok Men's R Crossfit Speed TR 2.0 D Cross-Trainer ShoeMan's/Woman's Jordan Horizon Premium PSNY Beautiful color First quality Superb craftsmanshipNIKE AIR MAX 90 PREMIUM Men's Shoe - Sail/Sepia Stone/White/Sail , Men's Nike Air Foamposite One XX Size 7 (895320 500)SKECHERS MENS 61010 PHOENIX KHAKI/TAN/BROWN SUEDE SLIP ON LOAFERS SHOES 12 NEW , Fred Perry Spencer Waxed Leather Sneaker - Choose SZ/ColorStacy Adams Stratford Navy Brown Wing Tip Monk Strap Leather Dress Shoes , Harpelunde Motif Men Velvet Loafers Green Slip On Wedding Shoes Size 6-14LANVIN Size 12 Black Snake Skin Pointed Screw Oxford FlatsPUMA Women's Basket NS Wn Platform, Blue, Size 11.0PUMA FIERCE STRAP FLOCKING Women Sneakers (10 M, PEACOAT/WHITE) , Womens Cow Leather Platform Wedge Sneakers Open Toe Sandals Rivets Summer Shoes , Nine West Black Women Ankle Boots Booties Size 8 New Stretchable elastic top , Man/Woman Arnaldo Toscani - 1097801 Diverse new design Latest styles Outstanding function , SAM EDELMAN Womens 'Paige' Taupe Suede Fringes Ankle Boots Sz 9.5 NEW! 203352
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e -

    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.

    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e -

    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
    Converse BO-158947C mogochinese-29764_ATHLETIC_NAVY_MASON US_TURTLEDOVE sneaker Women's - Blue Blue US dd6295e
    Athletic Shoes