Never miss an update

Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092

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
Shipping Information: View shipping rates and policies
Brand: WestCoast Style: Booties
Never miss an update

Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092 -

    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092
    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092
    Womens Embroidery Ankle Boots Floral Buckles Retro Ridding Shoes Side Zip FlatWomen's New Rivet Punk High Boots Pu Leather Rhinestone Studs Suede Shoes Hai12 , Womens Fashion Clear Ankle Boots Chunky Heels Back Zip Shoes Ridding Party Shoes , DEMONIA Cramps-01 Series 6 1/4" Heel Goth Punk Alternative BootieLeather Pointy Toe Combat Punk Boots Womens Metal Chain Decor L;ace Up S343 , Henri Bendel Snake Print Rain Boots / Wellies size 7 , Nine West Oreyan Knee High Riding Boots 720, Black Leather, 6.5 USAriat Cowboy Boots Womens Size 6.5 B Brown Off White Cowgirl Western Work Shoes , Womens 15cm High Heels Side Zipper Platform Plus Size Stilettos Chic Boots B622New Womens Wool Lined Winter Thicken Ankle Snow Boot Casual rhinestone Flat Shoe , Occident Women Pointy Toe Slim Heel Casual Stretchy Ankle Boot Pull on Stiletto , The North Face Women's Nuptse Purna II Boots - Women's size 6.5 - BrownWomens Wedge Platform Round Toe Knee High Riding Boots Pull On Hidden Heels F78 , BOHO GRAY Pointy Toe Stretch Ponte Stiletto Heel Over Knee Thigh High Boots NEWVogue Womens Shiny Leather Ankle Boots High Heels Pumps Shoes Wing Tip Booties , Rhinestone Women's Square Toe Chunky High Heels Suede Side Zip Ankle Boots Ths01Easy Street Endear Dress Ankle Booties, Black/Snake, 9 US , Womens Winter Slip On Furry Lining Cotton Shoes Warm Snow Boots US Size 4-10 , Stephanie Brazil Bootie 8 Black Nubuck Leather Stack Block Heel Boot Pump Buckle , Womens Sexy Suede High Heels Block Over The Knee Thigh High Boots Shoes RetroWomens Gothic High Heels Buckle Round TOe HIgh Top Ankle Boots Shoes BlackFitFlop Women's Surfa Sequin Flip Flop - Choose SZ/color , Women's Stretchy Platform Super High Heels Stilettos Over Knee Thigh Boots Shoes , Suede Peep Toe Stacked Chunky Heeled Ankle Boots , AdTec Women's 8616 14" Western Pull On BootRomika Women US SZ 6 -36 M Gray Pebbled Leather Ankle Boot New , LUCKY BRAND DUNES BRINDLE LEATHER COMBAT BOOTS OVER THE ANKLE MOTORCYCLE BUCKLE , Mark Fisher Valley4 Brown Suede Winter Boot 7 M NIB!American Rag Womens Eboni Closed Toe Mid-Calf Fashion Boots, Black, Size 8.0 Lzx ,
    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092 ->Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092 -
    PRADA woman black leather ankle boots 100% AuthenticNike Hyperdunk 2016 Low EP Black Yellow Men Basketball Shoes Sneakers 844364-070 , YSL Yves Saint Laurent TRIBTOO haircalf/suede ankle boots 41/10.5Gentleman/Lady TOPO ULTRAFLY WOMENS Adequate supply and timely delivery Has a long reputation Caramel, gentle , Nike Epic React Flyknit GS Pink Blast Black Youth Women Running Shoes 943311-500 , Men/Women LADIES SHOES/FOOTWEAR -Mago Maestro boot red Complete specification Clearance Excellent stretching , New Effegie Aeria W Womens Shoes Comfort Sandals Sandals FlatGiuseppe Zanotti Rose Gold heels Size 39MORI MADE ITALY FLATS SCHUHE SHOES BALLERINA KROCO SUEDE LEATHER BLACK NERO 40 , New Django & Juliette Lusty Womens Shoes Sneakers Casual , **SALE** - FINN COMFORT 10 US womens (7 1/2 UK), leather, S-W-18 , NIB $595 Giorgio Armani Women's Black Suede High Heels Shoes 37.5 Euro X1E313 IT , New in Box Adidas G95728 Women's Original Honey MID EF TREFOIL ShoesSTICO Womens BLUE Non-Slip Safety Beach Slipper Sandal EVA Ceramic KOREA_AcFila Memory Capture 2 Strap Extra Wide Athletic Men's Shoes Size 12New Nike Zoom Shift TB size 11 Men's Basketball Shoes Black 897811 001- , K Swiss Classic 88 Sport Mens Premium Retro Vintage Trainers WhiteFred Perry Men's Kendrick Tipped Pigment Dyed Trainers Shoes B7403-C45 - CobaltSALE NIKE ZOOM KD 8 SUIT COURT PURPLE GREEN STRIKE 749375 535 SZ 12 NEW VIIImilitary men's leather solid black knight knee high boots flat casual shoes 2018 , Casual Mens Slip On Oxfords Loafer Moccasin Leather Boat shoes Board Driving New , NEW Mens 10.5 M Donald Pliner Edd Wingtip Oxford Casual Shoes green MSRP $225 , Vogue Mens Pointy Toe Sequins Blingbling Loafers Slip On Clubwear Leisure Shoes , Nike Ebernon Low PREM Premium Blue Navy White Men Casual Shoe Sneaker AQ1774-440 , Cole Haan Pinch Gotham Woodbury Leather Moc Braided Penny Loafer Men's US 10.5M , Nike W AIR FORCE 1 HI PRM SUEDE OBSIDIAN DYNAMIC PINK SUNSET 845065 400 , NEW DOLCE VITA WOMENS NATTY STUDDED SNEAKERSSporto Water-Resistant Suede Tassel Boot in Fossil/Taupe, 8.5 MedFidji Size 7.5 to 8 Eur 38 L863 Black Leather Ankle Boots New Womens Shoes , Women's Leather Fold Over Knee High Boots Wedge Heel Fold Over Boots Shoes R999
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092 -

    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.

    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092 -

    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
    Women's Mid Calf Cowboy Women's Boots Distressed Slouchy O-Ring Studded Studded Slouchy Pull on... 5711092