Never miss an update

5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d

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
Marque: SENDRA
Matière: Cuir Couleur: Marron
Pays de fabrication: Espagne
Never miss an update

5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d -

    5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d
    5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d
    NEW IN THE BOX MENS LUCCHESE HORSEMAN BOOTS - SIZE 9 1/2 D - TAN/CHOCOLATE COLORLucchese Men's Milo Dark Brown Round Toe Cowboy Western Boots N1663.R4Sendra Boots Style 3434 Brown Leather Western Biker Cowboy BootsAriat Men's Crossfire Weathered Brown/Shadow Black Full Grain leather , ROCKY S2V GORE-TEX WATERPROOF 400G INSULATED TACTICAL BOOTS FQ00104-1 *ALL SIZES , VINTAGE 60'S LEWIS LEATHERS AVIAKIT SHEEPSKIN LINED BOOTS SIZE 7.5 AERO ZIPSRocky FQ00104-1 S2V US Made Berry Compliant Waterproof Insulated Combat Boots , Salewa MTN Trooper L Boot - Men's , Oak Street Bootmakers Oxblood Lakeshore Boot size 11 D Excellent!! , Rocky Men's S2v Gore-Tex Waterproof Insulated Military Duty Boot Round Toe -Lucchese 1883 Cowboy Boots 10 Snake Lizard Western Red Black Men’sVINTAGE NOCONA 100% FULL CUT GOLDEN PYTHON RARE , New Bally Leather Ankle Boots Lejor Calf Plain Buckle Sz 10.5LUCCHESE Brown Alligator Leather Cowboy Boots Mens Size 8.5 D Style 1L217 USA , Men's/Women's ECCO Men's Ian Mid Chukka Boot wholesale Sales Italy Global salesSalomon L36699600 Mens X Ultra Ltr Gtx Hiking Shoe- Choose SZ/Color. , Korkers Men's Snowmageddon Boot with SnowTrac & IceTrac Soles Black , Oakley Mens Factory Pilot Military Boots, Blackout BNWT/Box $250Authentic Versace limited edition high Black suede Boots FITS 7-7.5 USWORN ONCE | RALPH LAUREN PURPLE LABEL 12 D BELGRADE BLACK CHELSEA BOOT ITALYCarolina Men's 8" Broad Toe Metatarsal Guard Boot Harness Cork Leather , Danner Men's Stalwart 6" GORE-TEX Work Boot Black Leather/CorduraDr. Martens Men`s Jadon style CRAZY BOMB Black White US 12 LASTMagnanni Hiker Alpine Boot Brown Tobacco Leather Size 10.5 *Wolverine Mens Size 8 Ankle Boots 1000 Mile Brown Suede Made In USA , Men's Buckle Chukka Made in USA by FootskinsLucchese Black Cherry Goat Skin Boots size 11B VTGRM Williams Bushman with a Cuban Heel B500C , * Red Wing * Black Leather Engineer/Biker Motorcycle Boots D With Tags
    5595 >5595
    Wmns Nike Air Zoom Vomero 13 Black White Anthracite Women Running 922909-001Steel Blue Southern Cross Ladies Work Steel Cap Boots Shoes Purple & Pink , Josef Seibel Sue05 Women Leather Matt Black Ankle Boots , New Tony Bianco Pumps RRP $260 size 35 , Easy Spirit Womens Eveline Closed Toe Loafers , Women Med Heels Stilettos Slip On Mules Suede Pointy Toe Pumps Leisure Shoes HotMARC JACOBS BLACK IVORY PATENT LEATHER MARY JANES HEELS SHOES 40 10 , Anne Klein Sport Women's Guardian Leather Dress Pump , Ladies Clarks Peep Toe Sandals Delsie KalaChristian Louboutin Pigalle Follies 100 Patent Sun Yellow Heels Pumps Eu 36.5Nike 477103-461 Big High AC Men's basketball Shoes New In BoxMen's/Women's Converse Chuck Taylor All-Star Good world reputation product quality leading the fashionGola Harrier Mens White Navy Red Leather Sneakers , Nike MD Runner 2 Mid PREM Wheat Sail Black Sz 10.5 NIB 844864-700Men's 574 SL Golf Shoe, Grey/Silver, D US Free ShippingNike Zoom Fly Vast Grey Anthracite Running Shoes 880848-002 Men's 8.5-14 NEWNike Kyrie 4 AS "Tie Die” - All-Star Weekend - Men's Sz 10 - NEW/DS - AQ8623-001 , Saint Laurent Paris Black Leather Chelsea Boots Hedi Slimane 20 Wyatt 30 41.5 9 , Converse X Jack Purcell Jack Black Ox Low 147581C Mens 8 Womens 9.5 Printing InkMen's/Women's LACOSTE Carnaby Evo 317 Noir Perf the most convenient Year-end sale Popular tide shoes , NIB Cole Haan C23845 Mens Pinch Friday Penny Loafer- Choose SZ2018 Mens Spike Rivet Dress New Shoes Punk Nightclub Chic British Loafers Shoes , Gentlemen/Ladies Nike Air Huarache Women bargain Beautiful Seasonal promotionNew Balance Ladies 574 Turquoise Size 7 Sneaker BRAND NEWWMNS NIKE AIR HUARACHE ID BLUE-BLUE-WHITE SZ 7 [777331-994]New Balance 860 v8 Size US 9.5 D WIDE Women's Running Shoes Blue W860BN8 , W AIR FOAMPOSITE ONE "Dark Stucco" Black AA3963-001 Women's Sneakers BRAND NEW , Bling Nike Free 5.0+ with Swarovski Crystal Swoosh Detail Women's Shoes * BlackWomens chain decor mid Calf High Top Boots slim heels zip rhinestones shoes NewNew North Face Womens Shellista II Mid Boot Green size 6 B(M) US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017

    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.

    5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d -

    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
    5595 "******Superbe kaspar b evoluion tang** evoluion* tang***Superbe promo**** 338c02d