Never miss an update

Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd

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: Pleaser
Never miss an update

Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd -

    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd
    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd
    Man/Woman FLAMINGO-1018HG Stretch PU Silver Chrome Innovative design Let our products go to the world Fashion versatile shoes , Dockers by Gerli 36ur211-710610, Womens Low-Top Sneakers, Blue Hellblau 610, , Mr/Ms DELIGHT-600SK-01 Canvas White Neon Moderate price Medium cost Sales online store , Men's/Women's ADORE-1017RSF Silver Reasonable price Primary quality Non-slip , Portwest FW18HOR43 Goodyear Welted Boot, OB, Regular, Size 43, HoneyGentleman/Lady DELIGHT-600-23 PU Gold Chrome Reputation first Elegant style SimpleMen's/Women's DELIGHT-2059TT Black Hot Pink The color is very eye-catching Trendy Complete specifications , Dockers by Gerli Womens 41AB208-206430 Hi-Top Trainers, Grey Taupe 430, 4 UK , Man's/Woman's ADORE-1024RSF Gold PU Outstanding features Modern design wonderful , Gentlemen/Ladies DELIGHT-600-31 Black Microsuede Practical and economical a wide range of products Tide shoes listMan's/Woman's RAINBOW-1017TF-8 Clear Multi Neon Modern and elegant fashion First quality British temperamentGentleman/Lady ADORE-1017RSF Gold The color is very eye-catching Order welcome Caramel, gentle , Men's/Women's DELIGHT-1019 PU Hot Pink Neon Big clearance sale Beautiful appearance Various latest designs , Gentleman/Lady ADORE-1018SRS Black Patent Selling New style TRUE , Dockers by Gerli Womens 38PD212-610500 Trainers, White Weiss 500, 5 UK , Gentleman/Lady ADORE-1017RSF Fucsia High security low cost Exquisite (processing) processing , Man/Woman ADORE-1017RSFT Clear Black Beautiful design excellent Popular tide shoesMen's/Women's RAINBOW-1017TF-7 Clear Multi Neon Rich design Upper material Exquisite workmanshipMen/Women ADORE-1017MFF White Big clearance sale International choice Easy life , Men's/Women's RENAISSANCE-104 Microfibre Black Online Shopping Let our products go to the world Sales online storeGentlemen/Ladies ADORE-1018HG PU Silver Chrome excellent quality Sales Italy Official website , Man's/Woman's ILLUSION-1018 PU White Exquisite (middle) workmanship Ranked first in its class Exquisite (processing) processing , Gentlemen/Ladies DELIGHT-2019-3 PU Hot Pink Neon Complete specification Order welcome Personalization trendGentlemen/Ladies FLAMINGO-1017MFF Clear Black wholesale Known for its good quality cheaper , Gentlemen/Ladies ILLUSION-1021 PU Hot Pink Neon Complete specification range Clearance businessGentleman/Lady KISS-1018C Clear Excellent value Cheaper than the price Suitable for colorMr/Ms DELIGHT-600-48 PU Black New product Skilled manufacturing Export , Man's/Woman's DELIGHT-2016 PU White service Comfortable touch The first batch of customers' comprehensive specificationsMan/Woman DELIGHT-1018HG Silver Long-term reputation Good market professional design
    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd ->Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd -
    New Balance Men's 247 Mesh Trainers, BlackAdidas Men Shoes Neo Cloudfoam Advantage White Casual Unisex Modern New B43648 , New Skechers Ez Flex 3.0 Inspiration Womens Memory Foam Shoes , WOMENS HUSH PUPPIES EVERYDAY WALKER LEATHER WALKING BLACK FLATS ATHLETIC SHOESMoon Boot We Monaco Low Womens Boots - White All SizesMen's/Women's Ivanka Trump Womens Karita- Pick SZ/Color. Easy to use Used in durability At an affordable priceNew Chic Womens Sneaker High Top Ankle Boots Heels Stilettos Clubwear Shoes Hot , VTG BRUNO MAGLI women's - Size 8M - Red Suede 2.5" chunky Heel Almond toe , Marc Fisher Womens Ziro2 Open Toe Casual Strappy Sandals Black PA Size 10.0 OwChic New Bohemia Rhinestone Flat Heels Women's Flip Flops Slippers Sandals , Man/Woman Dr. Jay Converse Elegant shape delicate Authentic guaranteeNike Mens Air Jordan Zer0.1 Sz 10.5 Westbrook Blk Blue Triple Double AA2510-015Nike Mens Air Force 1 '07 Basketball ShoeAir Jordan Retro 4 Men's Shoes Size 8 - Military Blue 2012 , Nike Flyknit Max Running Shoes Clear Jade Volt Black White SZ 11 ( 620469-013 )Adidas Mountaineering Primeknit Superstar Slip-on Navy Us MENS 7. Us WOMENS 8.Sexy Women Pointy Toe Block Heels Zipper Ankle Boots Lady Winter Leather ShoesMan's/Woman's Durango Men's DDB0119 Western Boot selling price First quality Selling new products , Original Penguin Men's Shoes Torpengo Fashion Sneakers Cement White Size 9 NewNIB $2100 KITON Dark Green Suede Storm-Welt Chukka Ankle Boots US 11 ShoesNew $1375 Fiori Di Lusso Caramel Boots - Monk Straps - (FCM11371) , Leisure Men's Sequins Metal Decor Slip On Loafers Oxfords Driving Flats Shoes 10Skechers Women's Premium - Seeing Double White/Blue Casual Shoe 8.5 Women UsNike Zoom All Out Low Women's Running Training Shoes, Size 11.5, 878671 010Womens New Balance 860 size 11 running walking , Under Armour Women's Threadborne Fortis 3 Athletic Running Shoes Black/Pink , Nike Air Max 95 AM95 Triple Black 307960 010 [Size 12 Womens (=Men's Sz 10.5)] , Women's Sanita I've Been Thunderstruck Rain Boots, Black, 39 EU/8-8.5 US, M , Women’s Italy Migliorini 37 1/2 / Size 7 Genuine Leather Brown Boots , Womens high block heel pointy toe shoes ankle boots shoes buckle strap black new
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd -

    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.

    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd -

    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
    Man's/Woman's Clearance ADORE-1017RSFT Excellent Clear hotelcastell-15406 Baby Pink Excellent value Preferred material Clearance sale 2ed25fd