Never miss an update

Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65

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: Adidas
Material: Synthetic Style: Lifestyle
Color: Black
Never miss an update

Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65 -

    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65
    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65
    NEW ADIDAS STAN SMITH VULC (B49618) ADIDAS ORIGINALS CASUAL SHOES SNEAKERS , Men’s NIKE AIR JORDAN RETRO 13 XIII LOW BRAVE BLUE BLACK 310810-407 Size 8 , Nike Air Presto X DB Doernbecher Shoes Men's Size 9 AJ8651-300NIKE CLASSIC CORTEZ NYLON 807472 102 WHITE/GYM BLUE MEN US SZ 8.5 , Nike Men's Jordan Spike Forty NEW AUTHENTIC Red/Black/White 819952-605Adidas Nemeziz Messi Tango 18.3 Indoor  Soccer Shoe - Mens , Nike Flex Contact 908983 400 Men's Running Shoes Blue/White NIBNEW MEN'S ADIDAS ORIGINALS TUBULAR SHADOW KNIT SHOES [AC8791] TRACE SCARLET/BLKNIKE LeBron Soldier XI SFG Men's Basketball Shoes 897646-200 sz 12.5 13.5 14 15 , Nike SF AF1 Mid AJ9502 001 Suede Vast Grey Men SIZE 10.5MENS NIKE AIR MAX 2018 SIZE 11 FULL BUBBLE EXCELLENT CONDITION , Men's Under Armour Drive 4 Basketball Shoes Sneakers Red Gray Black Sz 10.5 NEW , ASICS GEL-Lyte V NS - Orange - MensNIKE LUPINEK FLYKNIT MEN'S SNEAKERBOOTS [SIZE 8] 862505-001 BLACK/WHITE/OREO , A710 Nike Dunk High Premium SB 313171-039 Mens Size 7.5 Shoes NEW , Mens NIKE AIR ZOOM PEGASUS 32 PRINT Running Trainers 806805 001AIR JORDAN TRAINER 2 FLYKNIT SZ 9 TRIPLE BLACK 921210 013 , CONVERSE ALL STAR CHUCK TAYLOR LEATHER LOW MEN SHOES GREY 157601C SIZE 12 NEWLacoste Mens Shoes GRADUATE LCR 3 SPM Casual Leather Sneakers 35SPM0013 NEW , MEN'S ASICS - GEL-KENUN (T7C4N-0101) - SIZE 9.5 - 40% OFF , NEW Men's Reebok Shaq Attaq IV Basketball Sneakers Shoes Size 9 mid athletic , [881453-600] MEN'S AIR JORDAN ECLIPSE CHUKKA CASUAL RED WHITE BLACK NIB! 8-13 , Gentlemen/Ladies ADIDAS PROPHERE BLACK/WHITE B22681 Excellent value The latest technology Preferential price , Nike AIr Max Invigor Print Men's Sneakers Running Shoes 749688-600 size US 11Nike Flight Bonafide Men's sneakers 917742 005 Multiple sizes , ETNIES FADER LOW SKATEBOARD SNEAKERS MEN SHOES BLACK 4101000203-013 SIZE 7 NEWNike Tanjun Men's Running Casual Shoes 812654-010Adidas Originals Tubular Instinct S80085 Black Hightop Sneakers Men's Size NEW , Saucony Zealot ISO 2, Men`s Size 10.5-11-11.5 Medium, Blue/Orange, NEW
    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65 ->Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65 -
    Ariat 10021481 Terrain Serape Print Round Toe English Outdoor Hiking Boots , SPRING STEP LITHIUM-TP - Lithium Size: - Color: , Australia LUXE Collective Atilla Rabbit Fur & Sheepskin Winter Boots - ChestnutNew Django & Juliette Lashes Black Metallic Womens Shoes Casual Shoes FlatGentleman/Lady Fabulicious POISE-508MG Packaging diversity Elegant style valueSPERRY TOP SIDER A/O Silver Metallic Leather Boat Shoe Size 7 NIB $95Rockport TOTAL MOTION ANNETT CAP TOE WEDGE Womens Annett Cap Toe Pump Black Burn , Brand New Tsubo Women's Bellan Black Flat Sandals Sz 8US,39EUR,6.5UK , CHLOE Black leather Platform Sandals sz 37.5 studdedBandolino Himeka Espadrilles Wedge Sandals, Light Gold/Light Gold, 6.5 USaw402 EDDY DANIELE shoes orange leather women sandals , Naturalizer Women's Charlie Sneaker - Choose SZ/Color , Karhu Steady Fulcrum Ride Size US 10.5 M (B) Women's Running Shoes BlueNEW SCHOLL ORTHAHEEL X TRAINER WOMENS COMFORTABLE CROSS TRAINER SHOES , MENS SZ 10 JORDAN 1 FLIGHT 4 PREMIUM BASKETBALL SHOE BLACK GYM RED 838818 006Puma Clyde X Undftd Snakeskin Ribbon Red 353917 02 Men's SZ 5.5adidas Originals Continental 80 White Red Navy Mens Casual Shoes Sneakers B41674MEN'S SHOES SNEAKERS ADIDAS CLIMACOOL M [CM7405] , 1805 Puma PACER NEXT CAGE Men's Sneakers Sports Shoes 365284-01 , Adidas NMD R1 PK White/Black Glitch Oreo BY1911 Size 11 Mens DSASICS Tiger mita sneakers Asics Tiger from japan (5997Nike Air Jordan Eclipse Chukka Anthracite/Black-White Mens 881453-006 9 8.5 , Merrell Polar Moc Waterproof Sneakers Brown Men Sz 9 2410 , Mens Pointy Toe CHIC Loafers Rhinestone Embroidery Moccasins Shoes BoardingMen's/Women's Women’s Nike Jewell for you to choose The latest technology Current shape , GOLA Relay Metallic Women Silver / White CLA099 , nike Women's Air FORCE 1 HI LX TX ORANGE WOMENS SHOE SIZES BQ7925-800 , Women’s mini classic short with crystal button Purple Australian Sheepskin US 5Women Shoes Chinese Style Embroidery Ankle Chic Fall Boots Dinner Party Sbox14 , Gentleman/Lady GEOX Shoes 647842 Black 36.5 Clearance price Comfortable touch Famous store
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65 -

    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.

    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65 -

    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
    Gentleman/Lady Adidas Men's Athletic Shoes Sneakers Men's of BB9695 Shoes High security International choice a lot of varieties d4d2f65
    Athletic Shoes