Never miss an update

NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95

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
Style: Walking
Material: Leather Brand: New Balance
Never miss an update

NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95 -

    NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95
    NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95
    [BB4416] Mens Adidas Kanadia 8 TR M Trail Running Sneaker - BlackVans Unisex Authentic Platform (Summer Mesh) Skate ShoeNike Air Max 90 Ultra BR 725061 400 , PUMA Cell Summanus Black Metallic Silver Size 14 men's athletic Nw/o box , ASICS GEL LYTE III White MENS 12 Fieg H307N 0101 NEWNEW Adidas $140 Men's Stan Smith Primeknit Shoes S75146NIKE Air Max 1 Ultra Moire SHOES US_9.5 / EUR_43 , UNDER ARMOUR MENS 9 UA THRILL WHITE SNEAKERS SHOES MESH BASKETBALL 1258794-100Osiris Bronx Boombox Hi Top Skateboard Shoes Black And Gold Size 13 , Nike Kyrie 4 Basketball Shoes Size 9.5 (men’s)Altra Men's Paradigm 3 Running Shoe, Red, 10 D US , NEW PEAK SPORT BASKETBALL TONY PARKER SPURS LEBRON KD 15 RED WHITE BLUE SIZE 14 , new balance 997.5 mens black white size 8.5 , NEW BALANCE 574 S MADE IN USA SZ 11 NIMBUS CLOUD BLACK WHITE MS574FBW 574S , OG Reebok Allen Iverson Question Mid Mens Shoes Size 9 White/Pearlized Navy-Red , NIB Nike 2005 Air Force 1 LeBron James 309063-661 Seamless Burgundy Size 10Man/Woman Vans Authentic, Cheap Cheaper than the price Elegant and solemnDC Shoes Men's Net SE Low Top Sneaker Shoes Heather Black (HE0) Skate FootwearHylete Circuit Cross-Training CrossFit Shoes NIB 13 Metcon Olive & Gum $150Saucony Shadow 5000 Wheat S70301-2 Men's SZ 13*Adidas Men’s Terrex Swift R Mid GTX Black Hiking Trail Shoes Size US 10.5 , new DR MARTINS kensington flora burgundy patent leather mens boots shoes 11Gentlemen/Ladies PUMA Suede Classic Leather Formstrip Sneaker Quality queen Quality and quantity guaranteed Very good classificationGentlemen/Ladies Etnies Skateboard Shoes Joslin Black/Navy Excellent value Low price Highly appreciated and widely trusted in and out , Skechers Men's Elite Flex Hartnell Low Top Sneaker Shoes Black Footwear Apparel , Nike Zoom Shift TB Basketball Mens Shoes NWOB Black White 897811-001 , Men's PUMA Drift Cat 5 Ultra Sneakers Walking Fashion Sneaker NWB , Adidas Jeremy scott 9 bones fur bear wings leopard.B26024 NEW with box. Rare , WOMENS NIKE AIR HUARACHE SIZE 11 FITS MENS SIZE 9!!! ,
    NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95 ->NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95 -
    Jordan Fly 89 US 8 Black Red White Basketball Gym Running ShoesTamaris Ankle Boots- Brown EU41 JS18 09 SALEw , I35 Tabithaa Over The Knee Slouch Boots 611, Black, 10 USMan's/Woman's Women's Ahnu Arabesque Flats Every item described is available King of quantity TRUE , $145 NEW TALBOTS Erica Croc Embossed Brazilian Leather Kitten Heel Pumps - Sz 7Man's/Woman's Antonio Eboli Italy 38 (8) Modern and elegant fashion Pleasant appearance The first batch of customers' comprehensive specifications20CM Womens Super High Heel Platform Mix Color Nightclub Shoes Stilettos Pump E8 , Yellow Box Women's Orchid Wedge Sandal, Gray, 8 M US , Man/Woman Aetrex Womens Selena Open Toe Casual Many styles In short supply Immediate deliveryNew Nike CJ3 Flyweave Trainer Calvin Johnson, Men's Size 9.5, Red, 725231-600 , Saucony Men's Cohesion 11 Running Shoes in Grey in Sizes 6.5 to 15 , Nike Free RN 2017 Binary Blue/Dark Sky Blue Size US 13 Men's 880839 404Nike Air Humara '17 QS Dark Russet Brown / Habanero Red Size 9 - AO3297 200Nike Shox NZ - Men's Black/White 01524091Nike Zoom Mercurial XI Flyknit FC University Red/Black-Red 852616-600 SZ 11.5New Balance M998CPL - USA 998 "Age of Exploration" (Grey / Red) MENSNIKE AIR SCAPE ACG ANTHRACITE DRNG RED BLACK DARK GREY [415338 001] Size 12 NEW! , Johnston & Murphy Men's Garner Penny Loafer Black Full Grain Leather LoafersBrand new in box Unmarked Toro Western chelsea boots US size 11D Made in Mexicopre owned Vasque Gore-tex Boots. Size: 11.5 M hiking Work waterproofKorean Style Men Rivet Pointy Toe Fur Tassel Slip on Punk casual Loafers ShoesMens Caterpillar Boots Outline Steel Toe Work Boot P90803Diadora Size 12 M B. ELITE Doe Brown Peach Pearl Suede Sneakers New Mens Shoes , Cole Haan Men's Shoes 2.Zero Grand Laser Wingtip Oxford Black Nubuck-Grey 12W , Mens Wing Tip Suede & Genuine Formal Leather Dress Shoes Casual Leather BootsZOTA Unique Men's Monk Strap Solid Pointy Toe Leather Slip On Shoes BrownSoftWalk Women's Meredith Sport Clog Purple Cloud Slip-Resistant (Non-Skid)Laredo Women's Access 51078 Tan Goat LeatherFashion Women's Faux Suede Ankel Boots Back Zip Pointy Toe High Slim Heel Shoes , Man/Woman Propet Women's Scotia Boot Charming design special promotion Elegant and solemn
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95 -

    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 Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95 -

    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 Med, BALANCE Men's Leather mogochinese-18915 Sneakers Closure, with Hook & Loop Closure, Med, Wide & X Wide 96f9f95
    Athletic Shoes