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 COLOR , Lucchese Men's Milo Dark Brown Round Toe Cowboy Western Boots N1663.R4 , Sendra Boots Style 3434 Brown Leather Western Biker Cowboy Boots , Ariat 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 BootsSalewa MTN Trooper L Boot - Men'sOak 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’s , VINTAGE 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 USAMen'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 BlackOakley Mens Factory Pilot Military Boots, Blackout BNWT/Box $250Authentic Versace limited edition high Black suede Boots FITS 7-7.5 US , WORN 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 LAST , Magnanni Hiker Alpine Boot Brown Tobacco Leather Size 10.5 *Wolverine Mens Size 8 Ankle Boots 1000 Mile Brown Suede Made In USAMen'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
    MERRELL WOMENS ENCORE Q2 BREEZE BLACK SIZE 8.5 , Ferricelli Ramond Mens Leather Gel Flex Comfort Boots Made In BrazilWomens AGL Black Leather Open Toe Ballet Flats Shoes Sz. 36.5 , Jessica Simpson Camba Mesh Pointed Toe Pumps 015, Sheer Nude Blush, 8 US / 38 EU , Funtasma Women's Salem 06 Black PU Pumps , Stuart Weitzman 6116 Womens Bowends Black Suede Pumps Heels 9.5 Medium (B,M) , L.K. Bennett Dark Blue Patent Leather Heels, Size 7.5 (US) 37.5 (EU) , BARNEY’s NEW YORK Brown Suede T-Strap Sandal. Size 8. 3 ½ “ Heel.NEW J.CREW VELEVET ANKLE-STRAP HEELS, F8482, SIZE 11, HONEY, $248 , Dior Women's 'Miss Dior' Peep Toe Platform Pump Size 36 Yellow Patent Leather , Prada Nude Strappy Platform Sandals - Size 36.5MEN'S VANS SK8-HI REISSUE DX (ARMOR LEATHER) TURTLEDOV SKATEBOARD SHOES 10.5Nike Air Jordan Retro 1 Phat Low Shoes White Red Sz 13 US Sneakers 338145-113 1B , ASICS GEL LYTE V 5 BLUE PRINT NAVY BLACK WHITE H6Q4L 5151 SZ 9Men's Nike Air Max 180 "Bright Ceramic" Athletic Fashion 615287 101 Size 10MEN'S NIKE LunarEpic LOW FLYKNIT 2 EXPLORER RUNNING SHOES 904742-100 SIZE 9.5Nike Air Force 1 Mid Canvas Mens AH6770-002 Desert Sand Sulfur Shoes Size 15Nike Air Max 1 LHM Latino History Month Wasafu Red Los Primeros AH7740-100 8.5 , Baffin Mens Hunter-M Green Rainboots Size 9 (274976) , Mens Genuine Leather Moccasins Driving Oxfords Loafers Shoes Boat Soft SHoesClarks Men's Burcott Monk Cognac Leather Casual Shoes StyleNew Kenneth Cole Reaction Men's Oxfords - "BEST FEATURE " - Black Sz 10.5Nike Zoom Rival Waffle Women's Binary Blue/Hot Punch/Polarized Blue 04719406ASICS WOMEN'S GT-1000 5 RUNNING OR WALKING SHOES MEDIUM B WIDTH SIZES 6 TO 11Adidas Originals Nmd CS2 Pk Primeknit W Women Boost Linen Beige New Limit CQ2039 , Vlado Women's Siren Sneaker Burgundy Neoprene High Tops , Joules Chelsea Pull On Rain Boots - Rockingham Leopard Print Size 11Tahari Gordon Women US 10 Gray BootieJ. SHOES TASHA SLIP-ON CLLACIC WOMEN SHOES BLUE STRIPE 4086 SIZE 10 NEWWomen Chelsea Ankle Boots Black White Real Leather Round Toe Love Heel Pumps New ,
    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