Never miss an update

Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d

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: Chinese Laundry
Material: Velvet Style: Pumps, Classics
Occasion: Casual Width: Medium (B, M)
Fastening: Buckle Color: Grey
Pattern: Solid Heel Type: Slim
Never miss an update

Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d -

    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d
    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d
    Sexy silver 5" knee high glitter costume boots , Isola Size 8.5 M Coral Silver Printed Leather Pumps New Womens ShoesRalph Lauren Corala Platino Wedge Sandal Women Size 9.5 M , Jessica Simpson Size 8 Black Leather Sandals Heels New Womens Shoes , Fly London OAROL Wedge Dark BROWN slingback Leather pumpAdrienne Vittadini Palm Beach Wedge Pumps, Champagne, 7.5 US , Zara Women Contrasting Slingback Heeled Shoes Size 6.5 NWT , Illusion 670 Black Leatherette Silver Platform Studded Ankle Cuff Shoe Size 5 , BORDELLO Stiletto High Heels Concealed Platform Plaid Shoes TEEZE-26 CreamPelle Moda Women's Oasis-Sd Dress Pump - Size 7.5 M, MushroomLadies Silk Solid Pointed Toe High Heels Bridal Stilettos Stylish Shoe Party NewPINUP COUTURE Secret-14 4 1/2" Heel Retro Rockabilly Vintage Pumps , Shellys London Woman Thrift Bronze Glitter Ankle Strap Stack Heel Wedge PlatformJ Crew Dulci Suede Kitten Heels Shoes $198 black 7 a9758 office work , Steve Madden Womens Jordan Leather Closed Toe MulesPINUP COUTURE PLEASER Mary Jane Pump Buckle Strap Details Tattoo Print SECRET-14Women's Chic Stripes Pointy Toe High Stiletto Heels Sexy OL Pumps Slip On Shoes , Womens Pointy toe Leather Oxfords Slip on Loafers Mules Slippers Shoes Plus Size , NAUGHTY MONKEY Leopard Sequins Glitter Stilettos Platform Pumps High Heels Shoes , Callisto Viona Pointed Toe Slip On Heels, Olive , Mr/Ms Sam Edelman Women's Halan Pump Louis, elaborate Latest styles Amoy , Man/Woman Charles David Women's Carmina Pump Modern technology Moderate cost comfortable , Alfani Sz 8.5 M Blossom Pink Seashell Leather Slingbacks Wedges New Womens Shoes , Pleaser DELIGHT-660FH Women's Exotic Black Hot Pink Patent Heel Platform Sandals , Bella Vita Danica Cutout Dress Pumps, Champagne Leather, 9.5 N US10CM Bridal Stiletto High Heels Wheat Ear Crystal Satin Bridesmaid Shoes Ske15 , PIERRE HARDY BLACK CANVAS/LEATHER SLINGBACK SHOES/BOOTIES SZ 39.5Fashion Womens Wedge Clear Heels Pointy Toe Leather Slip on Shoes Sexy Pumps New , MOSCHINO SIZE (37) 7b LEOPARD OPEN TOE STRAPPY STILETTO HIGH HEEL $69
    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d ->Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d -
    Frye Pull On Women's Boot Size 10 B , Schutz Tamarah Yucca Nude Taupe Stretch Kid Suede Over Knee Mid Heel Boots , Ariat Women's Callahan Work Boot - Choose SZ/Color , Men's Shoes Philippe Model Blue Green Tropez Mondial Sneaker Fall Winter 2019Tory Burch Heidi Ballet Flat Size 6.5 Pewter Metallic Snake , Made in Italia Shoes Women Ballet flats Pink 89389 BDT TRENDY , Women’s Serape Print Ariat Spitfire Casual Shoe 10025953Dansko Professional Box Cobalt Casual Dress Pro Clogs 006710202 Womens Sz 41, 42Leisure Women Bowknot Creepers Flats Slip On Breathable Med Heels Loafers Shoes , Brand New!! Jimmy Choo Red Patent Leather Pepper Peep Toe Size 37 Retails $570NWB Donald J Pliner Women's Sania Woven Heel, Light Bronze Metallic Nappa, 6.5 , Skechers 40791 Cali Womens Reggae Redemption Gladiator SandalMWomen's Slip On Synth Leather Low Block Heel Mules Sandals Shoes Rivet SlippersUnder Armour UA Charged Gemini 3 Black/Red Running Shoes 1285652-004 SZ 7 | 40Nike Men's Duel Racer Running Shoe, Light Charcoal/White-Pale Grey, 10.5 , DS Adidas Forum Lo All Star West Sz 10 - g47103 asw 2011 low cardinal met goldAIR JORDAN 1 I RETRO PHAT NEW SIZE 15 ATLANTA HAWKS BLACK VARSITY RED 375173 062kobe 3 Prelude NMD 350 Ultra boost Y3 low sz 13 Doernbecher DB FTB 640551-005Nike MD RUNNER 2 LW Men's Red Blue Retro Running Comfort Casual Sneakers Shoes , Bragano by Cole Haan Loafer Shoes Leather Tassels Weaved Woven Brown EUC Sz 7.5US Shoe Size Men Penny Loafers Moccasins Slip On Leather Lining Comfort DrivingBally Black Leather Loafer Mens Slip-on Casual Style Shoes 9 ½ M US Pattern TopVintage IMPERIAL Shoes Sz 9.5 D Mens Oxfords Leather Wingtip new old stock , New Balance Women’s Track & Field Shoes Sz 12 New Never Worn , New Nike Women's AIR MAX SIREN Running Training Shoes Gray/Purple 749510 001 , ADIDAS GAZELLE GENUINE LOW SNEAKERS WOMEN SHOES BEIGE / WHITE BB5178 SIZE 9 NEW , Nike SF Air Force 1 MID FIF - Burgundy - WomensReebok Women CN1237 Pump Supreme Running Shoes grey SneakersWomen's Fashion Low Heel Zipper Slouchy Mid-Calf Boots Shoes All Size 5 - 11 NEWAntonio Melani Womens Boots 8.5 M Black Leather Floral Textured Zip Heels 1402 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d -

    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.

    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d -

    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
    Chinese Rosie Laundry Womens Rosie Rich Velvet Velvet Open 29223 Chinese Toe Ankle Strap Classic ... c5e148d