Never miss an update


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
Shoe Type: Athletic
Colour: White Brand: Puma
MPN: 187538 01
Never miss an update


    Nike Air Huarache Run Ultra Black White 833147-003 Mens Size 9 Brand New , New Balance 574 Re-Eng Breathe Athletic Men's Shoes Size 9.5 , Mens Nike FREE HYPERVENOM MID FC Grey Textile Trainers 725128001Nike Men's AIR SHAKE NDESTRUKT Shoes White/Midnight Navy 880869-102 bNike Flyknit Racer Oreo Volt Men’s Size 6.5=Women’s Size 8 NEW 526628-011New Reebok RB1940 Men's Bema Casual Athletic Oxford Brown All Sizes Comp ToeMan's/Woman's Shoes Harsen-Ortego Skechers Brown Men 65620-DSRT The color is very eye-catching Wholesale trade negotiation , Nike LeBron Soldier XI 11 BLACK White Red 897644-002 mens size 11.5 BredNike Air Zoom Hyperdunk 2011 Blake Griffin BG32 size 11 VNDS treasure blue red , PRODUCT OF NEW YORK PONY HOUSTON SNEAKERS BOOTS sz 13 new , Asics Gel-Lyte III Mens Running Trainers H627L Sneakers Shoes 9090 , NIKE NIKELAB ZOOM FLIGHT 95 JASON KIDD PEARL PINK COBBLESTONE 941943 600 sz 10 , ASICS GT-1000 5 (4E) BLACK ONYX BLACK T6B0N MEN SHOES SIZE 9NEW SUPRA SKYTOP BLACK WHITE SURF SKATEBOARD HIP HOP SPORTS SHOES 11 , Nike Air Max MP Ultra HTM 848625-401 mark parker deep royal tinker hiroshiAdidas Tubular Instinct Dark Blue/Vintage White S80083 Men's SZ 9.5 , NIKE Lebron XI 11 KINGS PRIDE Basketball Shoes MENS 9 Parachute Gold/Artic Green , Men's Nike SB Zoom Janoski Premium Floral Digi Camo 482972-900 Size 13 , HOKA ONE ONE MEN STINSON ATR 4 BLUE ATOLL/BLAZING YELLOW US 7 //3 / , ADIDAS ALPHABOUNCE REIGNING CHAMP MEN'S SIZE 10 GREY/IVORY/WHITE NEWNike Mayfly Leather Premium Black/Black-Dark Grey-Linen 816548-003 Men's SZ 10 , Asics Gel Lyte III 3 Black/Black Galaxy H6U2Y 9090 Men's SZ 12NIKE AIR MAX 90 PREMIUM SZ 8 SNAKESKIN PACK VACHETTA TAN SAIL GOLD AH8046 200 , Man's shoes NIKE AIR MAX TAVAS 705149-022Puma FTR Trinomic Slipstream Metal Silver/Blue-Black-Cherry 356588 01 SZ 11.5Nike Air Max 90 Ultra 2.0 Essential Smokey Blue/Wolf Grey 875695-001 Men's SZ 10CUSTOM ANY LOGO LA DODGERS SLIP ON VANS shoes  football  soccer basketballNIKE FLYKNIT FREE 5.0 Mens Size US 11.5 Volt/White-Electric Green-Wolf Grey , NEW SUPRA SKYTOP EVO BLACK BLACK SURF SKATEBOARD HIP HOP SPORTS SHOES 9.5 ,
    Clarks Mens Tilden Cap G Fit Brown Leather Shoe x 11 (GO)Steel Blue 'Argyle' 332152 Black Work Boots. Steel Cap Safety. Zip Side Bump CapRear Yeezy Boost 350 v2 triple White Adidas Sz US8.5 and US9 - Sold Out , SKECHERS GO WALK 4 KINDLE WOMENS WALKING CASUAL COMFORT SLIP ONS ALL SIZES , Nine West Dempsey Ankle Strap Dress Sandals, Taupe Multi/Natural, 8 US , Gentleman/Lady SWING-115 Black PVC Hologram New market International choice Highly appreciated and widely trusted in and outWOMANS BRONZE COLORED STRAPPY SLIP ON SHOES WITH KITTEN HEELS .SIZE 9M , Man's/Woman's CAMPER Shoes 180327 Black 38 Online Shopping delicate Various latest designs , Skechers Women's Size 8.5 D'Lites D'Liteful Tan Gray Athletic Sneakers ZV-1237 , Nine West Allysway Strappy Ankle Strap Sandals 408, Pink, 9.5 USCONVERSE X MISSONI CTAS HI.. MULTI-COLOR.. MEN 9.5 or WOMEN 11.5.. MSRP: $150Reebok Insta Pump Fury Tech Solar Orange/White Sportstyle Classic Running M46319Adidas Paul Pogba PP Ace Tango 17.1 TR Size 10 USSt. John’s Bay Lennon Womens Ankle Boots Black Size 11W , Nike Cortez Basic Premium QS 819721-001 Size 11.5 Men Black Silver Brand New , MENS 8.5 M NAVY BLUE LEATHER BASS SLIP ON DRIVING SHOES LOAFERSRockport Men’s Junction Point Chocolate Leather Walking Shoes Size 9.5W D1089/ , Skechers for Work 77108 Mens Holdredge Rebem Boot- Choose SZ/Color. , Man's/Woman's RANSOM x adidas Originals Tech Moc Clever and practical At a lower price Direct business , Stacy Adams Raimondo Plum Cap Toe Oxford ShoesMens HUGO BOSS Leather Derby Shoes size made in Italy , Bernie Mev Black Stretch Woven Best Gem Slip On Comfort Sneaker 39 8.5 NEW , Jimmy Choo Penn Mens Black Pat crocodile-embossed leather Glitter Shoe Size 10Adidas Originals Stan Smith W [CQ2815] Women Casual Shoes Ash Pink/Off WhiteWMNS NIKE AIR ZOOM MARIAH FLYKNIT RACER PREMIUM MULTI COLOR SZ 9.5 [917658-101]Black Soft Leather Heeled Black Boots Diego di Lucca W Sz 9 Brazil Embroidered , Columbia Women's Ice Maiden Ii Snow Boot - Shale, Dark Raspberry , Womens Zipper Ankle Boots Stilettos Shoes Leather HIgh Heels Floral Decor Pumps , Tommy Hilfiger Dexter2 Wide Calf Boots, Black Multi, 6 US , Frye womens boots tall knee high riding brown leather 8 zip Melissa Harness moto
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017

    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.


    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
    Athletic Shoes