Never miss an update

Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b

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
Brand: Rieker
Lining: Textile
Never miss an update

Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b -

    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b
    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b
    Ladies Clarks Ankle Boots Style - Maypearl Alice , Gentleman/Lady Ladies Rieker Ankle Boots Z7054 Every item described is available High quality and economy Cheap order , Ladies Gabor Ankle Boots Lourdes Style 93731-W , Ladies Clarks Knee High Boots - Nessa KateLadies Clarks Heeled Slip On Ankle Boots Adya Bella , Man's/Woman's Ladies Gabor Boots Label 76091-W Modern technology Trendy Vintage tide shoesGentlemen/Ladies Ladies Remonte Zip Boots R3367 New varieties are launched Various types and styles Complete specificationsGentlemen/Ladies Ladies Harley Davidson Boots Style -Harland Special price New products in 2018 Complete specificationsMan's/Woman's Ladies Gabor Ankle Boots Label 75635-W Modern and elegant fashion First grade in its class Fine wild , Man's/Woman's Ladies Clarks Long Boots Orinoco Eave feature Online export store Speed ​​refund , Mr/Ms Ladies Padders Strap Ankle Boots Ida Selling online shop Non-slip , Ladies Clarks Knee High Boots - Likeable Me , Ladies Clarks Faux Fur Buckle Casual Boots Orinoco BloomGentlemen/Ladies Ladies Gabor Ankle Boots 75614-W Best-selling worldwide Latest styles retail priceLadies Clarks Leather Ankle Chelsea Boots The Style - Mascarpone Bay , Gentleman/Lady Ladies Gabor Boots Style 72823-W Innovative design Preferred material Fine wild , Ladies Harley Davidson Riding Appropriate Ankle Boots Harness Zip ~ KMen's/Women's Ladies Gabor Ankle Boot 72826-W Fashion pattern Win the praise of customers have fun , Ladies Remonte Fleece Lined Ankle Boots Style R2290-W , Man/Woman Ladies Gabor Boots 76091-W Moderate price a variety of Diversified new design , Ladies Van Dal Smart Block Heel Ankle Boot Carrow , Ladies Harley Davidson Biker Boots Style Cyndie -WLadies Clarks Long Boots The Style - Likeable Me , Man/Woman Ladies Remonte Patterned Detail Boots D8577 The color is very eye-catching Medium cost Rich on-time delivery , Ladies Remonte R6480 Long Boots Label ~ KLadies Remonte Ankle Boots The Style D4977-W , Mr/Ms Ladies Remonte Boots D4379-W Quality queen Elegant style List of explosionsLadies Clarks Chunky Ankle Boots Carleta ParisLadies Harley Davidson Mid Calf Length Biker Boot Style Sackett ~ N ,
    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b ->Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b -
    Walking Cradles Size 5 M EXTRA WIDE CALF CURLY Black Boots New Womens ShoesWinter Womens Pumps Shoes Cow Suede Tassels Fringe Knee High Boots Retro Hot Sz , Dockers by Gerli Womens 38PD212-610500 Trainers, White Weiss 500, 5 UKWomen's Stretch Front Leather Patent Crocodile Print Comfortable Ladies Shoes , Nina Armando Keira – White Mid Low Heels , Men's/Women's LADIES SHOES/FOOTWEAR -Arcopedico L14 grey snake Elegant appearance a wide range of products Don't worry when shoppingKanna Black Platform Loafers Creepers Glitter Fur Platform Oxfords Fringe 39 9PLEASER Sexy 5" High Heel Concealed Platform Closed Back Cream Shoes EVE02/CR , STEVEN BY STEVE MADDEN VOTIVE PEEP-TOE PLATFORM PUMP METALLIC LEATHER SIZE 8 MEDSkechers Women's Go Run Mojo Reactivate Sneaker - Choose SZ/Color , BIRKENSTOCK ZÜRICH MINK SUEDE LEATHER/SHEEPSKIN WOMEN'S FLIP-FLOPS ZURICH SLPPERNike Air Max 1 FB Mercurial Pack World Cup Size 11PF Flyers MC2002NV Mens D US- Choose SZ/Color. , New Balance Men's 720v4 Running-Shoes Cyclone/Vintage Indigo 7 D US2009 Nike Air Max ST LE Sample SZ 9 Neutral Grey Varsity Royal Blue 365706-043NIKE TIEMPO LEGEND VI SG PRO AC ANTI CLOG BLACK-HYP ORANGE SZ 9.5 [869483-018]CG3659 Adidas Men Nemeziz Tango 17+ 360 Agility UltraBOOST Solar Orange BlackKlogs Boca Closed Back Unisex Clogs Navy Blue - 9 WideLucchese Mens Leadville BootD (M)- Pick SZ/Color. , NIB NoLid Sperry Top-Sider Wahoo Ltt Leather Sneaker Boat Shoe Gray Mens Sz 10.5 , Nike Flex Supreme Tr 2 Mens Wolf Grey/White-Volt Running Sneakers size 8KENNETH COLE MEN'S VIC-TOUR-Y LEATHER SLIP ON CASUAL LOAFER IN BLUE OR WHITE , NIB ECCO BIOM GRIP MENS SHOES CREEK SLIP-ON~12-12.5~CLAY~CAMEL~AWESOME SHOE'SChic Men Metal Pointy Toe Nightclub Show Slip On Hairdresser Shoes Chelsea , men's shoes TRIVER FLIGHT 11 () elegant blue leather BX571-44 , Mt. Emey Women's 3310 Walking SneakerWmns Nike LunarEpic Low Flyknit 2 II Black White Women Running Shoes 863780-041 , Asics Gel-Quantum 180 2 Womens T6G7N-3948 Airy Blue Running Shoes Size 5.5La Redoute Collections Womens Leather Chelsea Boots With Ruffle DetailIVANKA TRUMP - AVALI DARK GRAY SUEDE ANKLE BOOT SZ 7.5, RETAIL $150 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b -

    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.

    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b -

    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
    Ladies Rieker Zip Up Rieker Riding Style 28642 Long Long Boots Z9581 2af096b