Never miss an update

Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7

Item specifics

New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Authenticity: 100% Authentic Guaranteed
Colour: Black SizeScale: Us Size
Material: Synthetic Shoe Type: Sneakers
MPN: 160339c Style: Fashion Sneakers
Width: Medium Brand: Converse
Never miss an update

Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7 -

    Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7
    Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7
    Bona Fide K-Swiss Bigshot Light 2.5 Mens Fit Tennis Shoe (D) (175)Adidas Barricade Club [BY1638] Men Tennis Shoes Grey/White-MaizeAdidas Men Shoes Questar Trail Training Fitness Trainers Road Running New BB7436MENS ASICS GEL KAYANO EVO MEN'S RUNNING/SNEAKERS/FITNESS/TRAINING/TRAINERS SHOES[bargain] Mizuno Wave Connect 2 Mens Running Shoes (D) (06) | RRP $160.00Men/Women Nike Takedown - Navy/White fashion Upper material Perfect processingNike Zoom Evidence Black White Volt Men Basketball Shoes Sneakers 852464-006Merrell White Pine Vent GTX Gore-Tex Brown Black Men Outdoors Trail Shoes J12473 , Adidas X_PLR Classic Casual Lifestyle Sneakers 2018 Grey/White/Carbon CQ2408Royal Elastics Duke II 1802 Black Gold Men Shoes Sneakers Trainers 05374-999 , Adidas NEO VS Advantage [BB9665] Men Casual Shoes Black/BlueNike Zoom Train Complete 2 II Black White Men Cross Training Shoes 922475-005 , MENS ASICS GT-II WORKWEAR PACK MEN'S RUNNING/SNEAKERS/TRAINING/TRAINERS SHOESReebok CL Leather Archive [CM9670] Men Casual Shoes White/GreyMizuno Wave Bolt 7 [V1GA186047] Women Volleyball Shoes Grey/Volt-Black , Men's/Women's New Balance Men's X-90 Trainers, Black Reliable quality Highly praised and appreciated by the consumer audience Good quality , Vans Vault OG Sk8-Hi LX White Leather Men Women Skate Boarding Sneakers 72070608Asics Gel-ds Trainer 21 Mens Running Shoes (T624N-9007) US 9.5 Euro 43.5 cm 27.5Nike Air Force 1 Retro QS High Nubuck 9.5 White University Blue Beige Sf Af1Adidas NEO Lite Racer [BB9775] Men Casual Shoes Navy/Grey-WhiteMerrell Capra Rapid Red Black Mens Outdoors Water Hiking Shoes J02445Asics Tiger Gel-Vickka TRS Triple White Men Casual Shoes Sneakers 1193A132-100Vans Classic Slip-On KYOSOU Indigo Blue Dye Men Skate Boarding Shoes 60002699 , Puma Suede Classic Navy White Mens Womens Classic Casual Shoes Sneakers 35656851Royal Elastics New York 1805 Low Black Beige Gum Men Slip On Shoes 03982-099 , New Balance Men's 574 Suede Trainers, Grey , Nike Renew Rival 2E [AV8456-002] Men Running Shoes Oil Grey/Black , New Balance 247 Revlite Knit in Black / Gum Sole MRL247DB Size 10.5 ShoesNike Air Presto Essential Classic Running Shoes Black/Black-White 848187-009 ,
    Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7 ->Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7 -
    Twisted X Boots Women's WDM0017 Driving Moc , Christian Louboutin BOTALILI 120 Black Platform Knee High Heel Boots Shoes $1395Man's/Woman's Ankle Boots. Womens Shoes Packaging diversity discount price A balance between toughness and hardnessNew retro style yellow patent low wedge shoe buckle toe sz 7.5 Brady 60'sNew in Box Womens Frye Ember Cross Ballet Cement Sunwash Nuubuck Size 6.5 72096Pikolinos Women's Jerez Loafer 578-3685 Apricot Leather Loafers , CHARLOTTE OLYMPIA women shoes pink linen Capri Cats espadrillas flat Kitty faceMan/Woman Saint Laurent Court sneaker 36,5 Good design King of quantity Elegant and robust menu , ANN TAYLOR SIGNATURE PUMPS! Womens Size 7.5 US, RED FLAME Color StyleCasual Women Peep Toe Buckle Strap Sweet Floral Shoes Slingback heels SandalsDolce & Gabbana Gold Chain Leather Heel Sandals Size 40 Made in Italy , Jaggar - Women's Step Up Block - BlackAnnie Shoes Womens Lois Dress Sandal Black Satin Rhinestone & Clear Vinyl Sz 10 , Aerosoles Midterm Slip On Mules, Denim Fabric, 8.5 US , FLEXUS WILLA-NN - WILLA Size: - Color:Gentleman/Lady NEW MARCELA YIL WOMENS SANDALS Year-end special promotions New products in 2018 cheaper , Franco Sarto Women's Tilden SlideVANS Style 201 (Perf) Madder Brown/True White UltraCush Suede Men's Size 11Puma IGNITE Limitless 18949504 Peacoat Mesh Synthetic Running Shoes (D, M) Men , Vibram FiveFingers Men's V-Run Shoes M3101 Black/Yellow Size 49/ US 13-14UNDER ARMOUR CLUTCHFIT DRIVE 2 MEN'S ATHLETIC SHOES SIZE 11.5 , Men's Canvas Dress Blue VANS - Size 10.5Keen Ashland Slip On Shoe - Men's Size 13M Brown DAMAGEDNew Cole Haan Black Leather Sheepskin Lined Slippers Loafers Men's 13 MStacy Adams Men's Dayton Ostrich Oxford - Choose SZ/Color , Funtasma 3 3/4" Heel Shiny Red Thigh High Boots 6 7 8 9 10 11 12Totes Womens Sandi Snow Boot, Wide Width, Black, 9Womens Leather Roman Thong Platform Sandals Long Mid Calf Boot Fashion Shoes NewNew Stylish Stretchy Womens Pointed Toe Thick High Heel Mid Calf Boots Shoes , NIB Women's Koolaburra Classic Short Winter Boots Choose Size Drizzle
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Converse Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7 -

    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 Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7 -

    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 Black One Star Men Year Shoes Of The Dog Solar Pack Black Men Shoes Sneakers 160339C 8af28c7
    Athletic Shoes