Never miss an update

Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881

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: Funtasma
Never miss an update

Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881 -

    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881
    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881
    Man/Woman RADIANT-709CHH Black Ideal gift for all occasions King of quantity Explosive good goods , Men's/Women's DELIGHT-658 PU Black Customer first Quality and quantity guaranteed Good qualityGentlemen/Ladies SNEEKER-105 Canvas Black service First quality Explosive good goods , Man's/Woman's LOVELY-430RS Clear Rich design high quality Very good classificationGentleman/Lady ADORE-708UVLN Clear Black Multi Neon Economical and practical Pleasant appearance buy onlineMr/Ms SKY-309VL Black Various goods Year-end sale King of the crowd , Gentleman/Lady FLAMINGO-808HFN Clear Black Hologram Bronze Customer first Environmentally friendly Great choiceMan's/Woman's WIGGLE-17 Cream PU Neon Pearl service Various types and styles cheaper , Pleaser Pink Label Women s Eve-04 Platform Sandals, Beige Cream Pat , 12 45 EU , Gentleman/Lady SKY-309HG Hologram Fuchsia Moderate price Optimal price Exquisite (processing) processing , Men's/Women's CLICK-08 Canvas Black durability stable quality Excellent stretchingMr/Ms KIMBERLY-01SP PU Taupe Great variety Let our products go to the world Explosive good goodsGentlemen/Ladies FLAMINGO-809-2G Glitter Black fashion High-quality materials high quality productMen's/Women's SKY-308G-T Clear Glitter Black Elegant appearance Upper material businessGentleman/Lady ASPIRE-609MG Black Mini Glitter Many styles Environmentally friendly Selling new productsMan/Woman VICTORIAN-120BL White Red Crazy price modern cheaper , Men's/Women's ADORE-708UVLN Clear White Neon excellent quality Trendy Caramel, gentleMr/Ms RADIANT-708NSB Clear Neon Blue main category cheapest businessMan/Woman SKY-309HG Hologram Turquoise Easy to clean surface Strong value Maintenance capability , Man's/Woman's GOGO-303 White Clear Special price Price reduction Rich on-time delivery , Gentlemen/Ladies STEAM Brown feature Strong value Great choiceMen's/Women's CLICK-07 Canvas Red Black White Black service Modern design Preferential pricePleaser Pink Label Dre420WB, Womens Closed-Toe Pumps,Pink H. Pink Pat,7 UK4Men's/Women's RADIANT-708UV Clear White Neon We have won praise from our customers. stable quality International big name , Men's/Women's STARDUST-708T Clear Pink Diverse new design Upper material Exquisite (processing) processing , Men's/Women's BRAVO-89 PU Black Excellent value low cost cheap price , Men/Women SKY-308TT Clear Black White Neon Easy to clean surface In short supply International big name , Gentlemen/Ladies TEEZE-49W PU Black Clearance price Attractive fashion Perfect processing , Gentlemen/Ladies MARYJANE-50X Black Practical and economical Ranked first in its class business ,
    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881 ->Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881 -
    Dr Martens Air Wair Triumph Brown Leather Plaid Lined Fold Over Boots Womens 6$425 LA CANADIENNE Tiana Weatherproof Zip-Front Suede Ankle BOOTS 6.5 Black NEW , La Canadienne Women's Charlotte Black Waterproof Nubuck size 9 - was $465Chloe "Kyle" high top sneakers size 38Bogs Sauvie Clog Solid Womens Boots Wellies - Sage All Sizes , Man/Woman FitFlop Lu Lu Leather Antique White wholesale Stylish and charming Full range of specifications , Rebecca Minkoff Noelle Stud Velvet Platform Slip-On Sneaker Flats, Size 8.5 , Demonia Click-02-3 Black Canvas Skull Bow Studded Platform Mary Jane Shoes , Dansko NARROW Professional Black Cabrio Leather - size US 11 - was $125Seven Dials Women's Diva Slide Sand Suedette SlidesMan's/Woman's Guess Carrie Pump Pink Stiletto New varieties are launched special function Speed ​​refundSkechers Womens Disco Bunny-Boogie Down Clog- Pick SZ/Color. , Sandales Sexy Brides et Plateforme Dorées Haut Talon Aiguille 14,5cm!Du 34 au 39Lucky Brand Womens LK-Daytah Open Toe Casual Ankle Strap Sandals Blue Size 7.5 , NIKE SB ZOOM ALL COURT CK QS BLACK / WHITE CORY KENNEDYNIKE ZOOM LIVE II 2 Men's BASKETBALL SHOES Size 11 Gum Sole NIB AH7566-100 , Gentleman/Lady New Balance 247 Men's Black MS247EK Comfortable feeling a good reputation in the world Known for its beautiful qualityNike Lebron XIII Men's Basketball Shoe, Size 10.5 807219-461Servus 12" Neoprene Soft Toe Men's Boots, Copper & Tan, 22115 Size 7 Never UsedNew Bacco Bucci Alonzo 7 EE black (402) , 1901 Shoes Loafers LUGANO Brown Driving Moc Slip On Men's US 13 $155Winter Men's Leather HighTop Warm Waterproofed Sneakers Thicken Business Shoes$395 ALLEN EDMONDS PARK AVENUE MEN’S BLACK LEATHER CAP TOE OXFORDS SIZE 6½ E , Brogues Mens wingtip genuine leather Dress formal Fashion Casual Shoes OxfordKRAZY SHOE ARTISTS Classy Black Lightweight Men's Loafer, Size 11 , Ambassadors by verginia Shoes 275006 Blue 35 , Womens Nike Free 5.0 TR FIT 5 PRT Running Shoes Size 7.5 Black White 704695 014Clarks Riddle Avant Ankle Moto Boots Womens 7.5 M Black Buckle Bootie Side Zip , Tommy Hilfiger Womens Ebonie Closed Toe Mid-Calf Cold Weather, Black, Size 9.0 4AR35 Ada Knee High Boots, Black, 9 US ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881 -

    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.

    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881 -

    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
    Men mogochinese-18912/Women ARENA-2020 trade Black New market New Wholesale trade business 5d98881