Never miss an update

Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a

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
Style: Athletic Sneakers
Gender: Women's Brand: PUMA
Never miss an update

Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a -

    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a
    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a
    Nike Free 5.0 V4 NS Print Womens 695168-400 Aqua Teal Running Shoes Sz 5.5 , Skechers Mens 52000 Shape Ups Walking Shoes Size 9M Black Leather Toning Sneaker , Women's New Balance 1296V1 B Width Preowned Tennis Shoe Size 9.5 , Nike Womens Free RN 2018 Shoes AH5208 800 Sea Coral/Tropical Pink Size 6.5NIKE WMNS AIR ZOOM PEGASUS 34 880560-300 HYPER TURQUOISE WHITE DS SIZE: 7 , Asics Women's Size 6 GT 2000 4 Running Shoe T656N 9342 Gray BlueUnder Armour Charged Pivot Mid Metallic Womens Shoes 1303246 224 Bronze NIBWomens Nike Rosherun Flyknit Multi Color Black White Pink Blue SZ 5 (704927-001) , Womens Nike Air Max 1 Ultra Essentials Red Black Sail White SZ 5.5 (704993-600)NIKE CORTEZ PREMIUM ID WMNS.(AQ4694-992) BLACK-BROWN-WHITE WMNS.SZ.8.5 MNS.SZ.7MERRELL CAPRA BOLT AIR US 9 Woman's Hiking Trail Shoe , Vintage 90s Nike Womens Size 8 Mens 6.5 Speckled Leather Golf Shoes White PurpleNIKE WOMEN'S LUNARCHARGE PREMIUM 923286-500 ICED LILAC SUMMIT WHITE DS SIZE: 10 , NIKE Olsen Women’s Running Shoes Taupe Gray 896298-200. Size 6.5 , Women Adidas Adizero Adios Grey Running Shoes Womens ADIDAS BB6410 NEWWomen's Nike Air Zoom Ultra Preowned Tennis Shoe Size 6 , NEW! Nike 845361-401 Womens Zoom All Out Flyknit Blue 9.5M 101P aa , Womens AJ1 Rebel XX Cinder Orange AO1530-800 Size 8.5Keen Womens Uneek Round Cord Sandals 1016898 Neutral Gray/Gargoyle Size 8Women's Nike Zoom Fly - "Blue Fox" ice blue/white/black (897821 400) Size 826 Womens 15 Mens 13.5 New Nike Air Zoom Fearless FK Running Shoes 902167 106Nike Women's Air Jordan 1 RETRO HIGH PREM Shoes Black/Metallic Gold AH7389-007 cNIKE AIR MAX 90 SD WOMEN'S SHOE - Cobblestone - Size 7.5. no lid on box , New Balance Women 530 Summer Utility W530SUB green seafoam black white W530SUBAsics Women's GT-1000 5 Running Shoes, Indigo Blue/White/Safety Yellow,Size 10.5Man/Woman Azura Women's Sarik Bootie Special price product quality Different goods , Adidas Pureboost CNY Women Running Black B32696 Chinese New Year Editn $190 sz10ASH Impuls Skate Sneakers Slip On Crocodile-Embossed Leather Size 41 US 11Puma Women's Basket Heart 4th July NEW AUTHENTIC Toreador Blue 364808-01: sz. 9 ,
    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a ->Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a -
    Aquatalia Leonie black leather weatherproof leather Moto boots sz. 6.5adidas Questar TND Navy Yellow Volt Men Running Shoes Sneakers Trainers DB1116 , Nike Cortez Ultra QS Mens Running Trainers 882493 001 Sneakers Shoes , Womens TORY BURCH 222037 navy blue suede ballet flats sz. 6 M $220 , NIB Eric Michael Bonita Women Leather Ankle Boot , US Shoe Size Women Slip-On Classic Flat Leather Comfort Casual Dress Moc LoafersGREAT 5.5 W ORTHOFEET RED GREY CHATTANOOGA 859 MARY JANE ADJ.STRAP WOMENS SHOESRockport Shoes Flats Brown Loafers Croc Womens Size 8.5 M , Shoes MISS ME Size 8.5 brown stilettos studded booties NEW box Rock & roll style , Kelsi Dagger Brooklyn Women's Aada Black, black, Size 7.5Converse Chuck Taylor All Star Unisex Trainers Shoes Canvas Tall High Red , New Nike SB Koston 1 HyperVulc Men's Skateboarding Shoes Black/White 844447 001 , Shiba Inu Dog Running Shoes For Men-Free ShippingSteve Madden Shoes Gottit Fashion Men Blue New , Nike Air Barkley Posite Max Chuckposite Size 13 Suns Purple 76ers Eggplant , Nike Air Max 270 Flyknit AO1023-500 Men's Sizes US 7 ~ 15 / Brand New in Box!NEW MENS SIZE 8.5 STEVE MADDEN FREEDOMM BLACK CHUKKA SNEAKERS / SHOES , Cole Haan Estadio Slip on Sneaker - Size 11.5NEW Puma VEDANO V Men's Leather Shoes Size US 8.5SPRING STEP CARSON-B - CARSON Size: - Color: , Brand New DS Mens Adidas Yeezy 500 Kanye West Super Moon Yellow sz 10 , new mens SPERRY Top-Sider Gold Cup collection brown waterproof leather shoes 7Man's/Woman's chaussures derbies BOBBIES nubuck marron 41 Complete specification range In short supply a lot of varieties , DONALD J PLINER SPORT WOMEN'S SIZE 5.5, 10 M PIPER A BLACK/ BLUE SLIP ON , Adidas Womens Size 9.5 Originals Tubular Viral Ice Purple Athletic Sneakers ShoeNIKE Womens Nike Air Zoom Accurate 909734-001 BLACK Size 10.5 , Mark Fisher Valley4 Brown Suede Winter Boot 7 M NIB!Skechers Women's Star Shooter-Skyward Snow BootBlack5 M US , Dolce Vita New Sexy Lasso Brown Buckle Tall Knee High Riding Boots Sz 8 $129 , FRANCO SARTO Delancy Ankle Boot Suede Leather New Mushroom Velour Sz 7 NEW
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a -

    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.

    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a -

    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
    Brand New Puma Trinomic XT-1 Men's Athletic Puma Fashion Athletic Sneakers Brand [358622 01] cd09f1a
    Athletic Shoes