Never miss an update

NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1

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
US Shoe Size (Men's): = Schuhgröße (Choose your european shoe size)
MPN: S75645 Color: = Farbe
Product number: S75645 Style: Fashion Sneakers
Gender: Men´s Euro Size: = Schuhgröße (Choose your european shoe size)
Authenticity: 100% authentic Brand: adidas
Never miss an update

NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1 -

    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1
    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1
    Jordan Zoom Tenacity Men White White Gum Light Brown Running Shoes AH8111-115 , OLUKAI MENS KAUWELA CHARCOAL PALE GREY SIZE 9 , Mens COLE HAAN 200230 brown leather oxfords shoes sz. 11.5 NEW!Mens Nike Sky Force 88 Mid Orange white and grey size 10Men's El Naturalista Men's Ng20 Yugen Oxford Suede Leather Shoes size 41 , NIKE SB BLAZER LOW DECON BLACK WHITE SKATEBOARD FREE POSTAGE AUSTRALIAN SELLERPointy Toe Mens Patent Leather Formal Dress Business Groomsman Nightclub Shoes H , ara Jan Gore-Tex Leather Oxfords, Men's Size 12.5, Caffee NEWLow Top Mens Real Leather Black Shoes Embroidery Slip On Flat Gommino BreathableOluKai Men's Moloa Ray/Toffee Sneaker 9.5 D - Medium , Men's To Boot New York Brown Leather Fisherman Sandals size 10Seibel Men's Slippers LOW SHOES TRAINERS SPORTS SHOES BROWN LEATHER NEW17 New Womens fashion ankle short cheslea Boots suede low heel Euro Casual shoesWomens patent Leather Ankle short Boots low heel zip high top shoes British Hot , Man Suede Oxford Shoes - New Alberto Guardiani 9.5 $ 99.00Florsheim Work Men's FS208 Wily Steel Toe ESD Slip-On , Men's Bed Stu Cobbler Series Brown Leather Oxford Shoes size 9.5Robert Wayne Men's Daxton High Top SneakerNike MEN'S Air Force 1 NIKELAB Wolf Grey/White SIZE 13 BRAND NEW , ADIDAS ORIGINALS TYSHAWN PRO MODEL SHOES WHITE GREEN CG4274 AUST SELLER SHOECROCIDILE ALIGATOR OSTRICH PRINT CASUAL SHOE 100%leather COLOR IVORY **ALL SIZESNew Mens Real Leather Leisure Shoes Loafers Oxfords Moccasins Evening Driving SZ , Man Suede Oxford Shoes - New Skechers Mark Nason 9.5 $ 99.00 , New 2018 Mens Floral Printing Loafers Flats Low Top Slip On Shoes Casual TOPJapanese Mens Horsehair Shoes Slip Ons Multicolor Flats Hairstylist Round Toe szAsics Onitsuka Tiger MEXICO 66 Yellow Black DL408 0490 Shoes Sneakers taichi z1MDM0033 Twisted X Men’s Driving Moccasins – Bomber/Tan NEW , NEW SKECHERS HARPER FORDE RELAXED FIT MENS WIDE FIT LEATHER CASUAL SHOESMen's/Women's Nike Men's Air Huarache Fashion Sneakers Practical and economical Sufficient supply value
    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1 ->NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1 -
    New In Box Womens Dolce Vita Colbey Black Nubuck Chelsea BootsNew NIKE MENS AIR MAX Sequent 3 III WHITE / JADE 921694-100 US 7 - 10 TAKSE AUFrye Womens Carmen 3 Strap Boot- Choose SZ/Color. , Emerica Shoes Reynolds G6 White Skateboard Sneakers , NEW KEEN NEWPORT H2 MEN'S SANDAL WASHABLE RUBBER WATER SPORTS TRAVEL NAVY US 9 , Melissa - Women's Ground AD - Black Grey , SAS TRIPAD COMFORT BLACK PATENT SLIP ON ANIMAL PRINT LOAFERS SHOES WOMENS 9.5 N , Womens High Platform Over High Heel Slingback Clubwear Sandals Shoes Size 4.5-13 , Multi- Colors Rhinestones Women HIgh Heels Pointy Toes Pumps Wedding Party Shoes , PLEASER Sexy 7" Heel Platform Red Marabou Feather Ankle Strap Women's ShoesZee Alexis Womens Felicity Sandals Bone Ivory 7 MEasy Spirit e360 Women's Brickroad Sandal (832-834) Black , Skechers Women's Go Walk Lite-15372 Sneaker - Choose SZ/Color , Women New Balance Coast v3 Running (Medium B) WCOASLL3 Silver 100% AuthenticNina Womens martina ys Open Toe SlingBack D-orsay Pumps , Stuart Weitzman Women's Oneway Leather Color-Block Sandals Silver Supple 7M $398 , MENS NIKE AIR JORDAN FLIGHT REMIX SPACE BLUE INFRARED TEAL SZ 10.5 , Sperry Top-Sider Men's A/O 2-Eye Boat Shoe , Nike Men's Zoom Winflo Run Shoes 684488-403-8E Blu/Wht/Obsdn Sz 8 , Adidas Swift Run Mens CG4111 Core Utility Black Knit Running Shoes Size 10.5 , Nike Air Vapormax R Mesh CS Running Shoes Midnight Fog Gray Blue 10.5 AJ4469-002 , Man's/Woman's Nike Air Foamposite Sport Royal 2010 Fashion pattern Fast delivery Pick up at the boutiqueMan/Woman nike sb dunk high Easy to use Carefully selected materials Elegant and solemn1991 DS NIKE AIR JORDAN VI 6 WHITE INFRARED BLACK ORIGINAL US 7. vintageRockport Casual Suede Boat Shoes Blue Mens 10 Orig $115 Sneakers , Flexus by Spring Step Womens Ulisse Quarter Strap Sandal Navy Mesh Sport Sandals , Men's/Women's Demonia Women's Sinister 62 service real Explosive good goods , Dior Gold & Black Mesh & Nylon Floral Embellished "Fusion" Sneakers NEW SZ 41 11CLARKS Women's Breccan Myth Boots - Choose SZ/ColorNew! Free People Alamosa Black Distressed Leather Cuffed Ankle Boots US 6 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1 -

    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.

    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1 -

    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
    NEW adidas Vertias-X Weave adidas S75645 bagisrecor-29210 Mens Shoes Trainers Sneakers 29190 SALE c5623f1
    Casual Shoes