Never miss an update

J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Brand: J Crew
Pattern: Solid US Shoe Size (Women's): 9.5
Occasion: Casual Heel Height: Med (1 3/4 in. to 2 3/4 in.)
Heel Type: Slim Style: Pumps, Classics
Width: Medium (B, M) Country/Region of Manufacture: Italy
Color: Red Material: Suede
UPC: Does not apply
Never miss an update

J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf -

    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf
    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf
    JCrew $198 Suede Pumps with Stamped Croc Heel Sz 6.5 Black Shoes G8170 AVLBurberry 39 8.5 9 Career Pumps Heels Shoes Leather Brown Italy $325 MINT EUC , Tory Burch Grove Leather 100mm Block-Heel Bootie size 9 new in boxStuart Weitzman New Sexy Orange Red Strappy Open Toe Platform Pumps Heels Sz 8.5 , MANOLO BLAHNIK Black Suede Leather Kitten Heel Pumps Shoes Womans 37 7 , Penny Loves Kenny Women's Mynx Fur Lined Pump Natural Microsuede/Faux Fur HeelsALDO Women's Cassedy Pump Natural Nubuck HeelsJCrew $268 Elsie Suede D'Orsay Pumps with Fringe Sz 6 Vintage Cabernet F4871 AVL , NIB Badgley Mischka Ginny Size 8 Latte Satin Embellished Kitten Heel Pumps $235 , Proenza Schouler Black Leather Hidden Platform Booties Shoes Size 38 8Betsey Johnson size 6, 6.5 high heel shoes platform Pink purple Red New $228Badgley Mischka Seduce 5.5 Peep Open Toe Crystal Embellished Satin Heels Shoes , Pleaser Women's Sexy15/Bpu Heeled Sandal - Choose SZ/Color , MARC by MARC JACOBS Patent Leather Pump 37.5 Navy Cream Block Heels Shoes , Vince Camuto Women's Kain Dress Pump Black 10 M US , Sandales RUSSELL & BROMLEY / Donald Pliner 38.5 FR (7.5 US - 5.5 UK) , Irregular Choice Pumps Shoes Platform Wedge Spangled Bows Sz 8 1/2Prada Women's Gold & Brown Shoes, Kitten Heels, Pointy Toe Slingbacks 38.5 , ESCADA SPORT HIGH HEEL MULTI-COLOR PLATFORM WEDGES SHOES SIZE 39 NEW , Steve Madden Darla Womens Grey Velvet Ankle Strap Platform Pumps Sz 8.5 9506 , Bettye Muller Women's Granee Dress Pump, Black, 9.5 M US , Pleaser Women's Teeze-10G Platform Pump - Choose SZ/ColorJCrew $248 Elsie Suede Pumps Contrast Trim Sz 7 India Blue F4868 AVLFly London Brown Open Peep Toe Wedge Tram Sandals Womens 6.5 7 EU37 Shoes BuckleStuart Weitzman Women's White Studded Heels 6.5 MPleaser Women's TAB708MG/C/B Platform dress Sandal - Choose SZ/Color , Brand New!! BCBG MAX AZRIA Esra POWDER nude WOMEN'S Sandals HEELS Shoes sz 8.5m , NIB Cynthia Vincent Women's Bailey Ankle Wrap Sandal, Color Cobalt, Size6.5 M USJ. Renee Women's Elisabet Pump Chocolate Microsuede Heels ,
    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf ->J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf -
    FRYE Women's Sacha Moto Shootie Ankle Bootie - Choose SZ/Color , $299 DONALD J PLINER METALLIC BLUE LEATHER ANKLE WESTERN BOOTS SIZE 9 M - NEWTory Burch Kiernan Brown Womens Shoes Size 6 M Boots MSRP $495Guess Sanda3 Espadrille Wedge Sandals 889, Silver Multi, 6 US , Adrienne Vittadini Claud Flat Comfrot Sandals 718, Brass, 9.5 USFW13 PUMA WOMENS FLIP FLOPS NR. 37 VIOLET EPIC FLIP 353461-16 SEASIDE ​​POOLMen's/Women's Prada Heels online sale Upper material business , Burberry Deardown Black Oxford women's size 9.5 m Euro 39.5 retail 1095.00 , Brown Animal Print Over Knee Heel Boots, EU size 38, Animal Print High Heels, , FABULICIOUS Heels Platform Sandals Ankle Strap Black Patent COCKTAIL-509 Silver , Cole Haan Womens Amelia Suede Pointed Toe Classic Pumps Nude Leather Size 8.0 , Balenciaga Black Espadrille Wedge Sandals Platforms 37 7 , Steven By Steve Madden Womens Viienna Dress Sandal Shoes , NIKE DUNK LOW UK8 EU42.5 PALE GREY WHITE 904234 002 SKATE BASKETBALLASICS GEL LYTE III 3 SZ 11 HONEY GINGER SUEDE OFF WHITE HL7U2.3131nike DUNK CMFT WB mens hi top trainers 805995 001 sneakers shoes , NIKE LEBRON XI 11 PREMIUM SIZE 10.5 WHAT THE LEBRON Red LAVA 850884 400 , Skechers Men's Work Relaxed Fit Soft Stride Thurles SR Sneaker , Mens Sperry Top-Sider 0764027 Mako 2 Moc 2-Eye Loafers Size 13 M f129 , BLACK SIDE LACING MEDALLION TOE FORMAL TASSEL SLIP-ON SHOES BY BRUNE VNGS-206-01Mr/Ms Academie Gear Women's Kayla Promotion High-quality materials Personalization trendSuperga Women's 2750 Multi Color Eyelets Sneaker - Choose SZ/ColorPuma Basket Heart Suede Jr Halogen Blue Lilac 3 4 5 6 SportsLocker 365009-06Reebok Women's Club C 85 W&w Sneaker - Choose SZ/ColorMen/Women Jollys Women's Classic Shoe Yellow excellent quality stable quality businessGentleman/Lady Adidas UltraBOOST X Womens Sneakers BB3434 Complete specification range Won highly appreciated and widely trusted at home and abroad professional design , Merrell Women's Moab 2 Mid Waterproof Hiking Boot GraniteWomens Pull On Sexy Green Over Knee Thigh Boots High Heels Platform Party ShoesWomens Stiletto Heel Strench Over Knee Thigh Boots Leather Shoes Party NightclubADIDAS CW CHOLEAH PADDED CP AQ2025 BROWN ORIGINALS OUTDOOR WOMEN'S SIZE 9.5 NWB
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf -

    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.

    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf -

    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
    J $255 CREW Elsie Elsie Suede D'ORSAY Pumps SZ.9.5 New $255 RED #c5770 RED SUEDE 347c5cf