Never miss an update

NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9

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
Brand: Badgley Mischka
Material: Leather Style: Ballet Flats
Heel Height: Flat (0 to 1/2 in.) US Shoe Size (Women's): 6
Color: Black Width: Medium (B, M)
Pattern: Solid
Never miss an update

NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9 -

    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9
    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9
    Salomon Ellipse 2 CS WP Women's Hiking Shoes Size 7 , Tod's Gommini Brown Penny Loafer Driver Moccasin Flats Shoes Size 39 9 , Naot Wedge Slip Ons-Women's size 5 BlackSteve Madden Conncord Pewter Stud Crystal Rhinestone Embellished Flats Loafers 8Super Comfy!**NEW SAM EDELMAN BOW BALLERINA BALLET FLATS, SIZE 9 Silver/ GreyBirkenstock 39 Arizona suede unisex Ladies sz 8 Mens size 10Attitudes Paul Mayer 7519 Cap Toe Bow Ballet Flats, Light Pink, 6 M US DisplayPaul Green Jayne Women's FLATS Rosewood Combo$225 size 8 Paul Mayer Bravo White / Black Leather Cap Toe Ballet Flats ShoesJ.Crew Gemma Cap Toe Flats 8 ballet shoes f5518 ivory burg navy houndstooth , Women's Tory Burch Reva Ballet Flat Pewter Mirror Snake Print 4.5 MMartino Womens Shoes Walking Wedge 132800 US 10 W Black Suede Slip-on 292Jimmy Choo Womens Shoes Sz 37 7 Gold Metallic Leather Ballet Flats Casual , Prada Womens Size 36 Eu 6 US Black Slip-On Sporty Loafers Shoes Made in ItalyVionic Women's Coast Valeri Slip-On Espadrille Flat Coral Stripe Style 356Tory Burch Size 7 Burlap Black Patent Bow Flats w/ Pointy ToeNaot Trendy Mary Jane Pump Chestnut Brown Patent Leather Round Toe 37 6 USGentlemen/Ladies demonia creepers Best-selling worldwide Upper material have fun , STUART WEITZMAN NAVY NYLON AND LEATHER PLATFORM WEDGE LOAFERS IN SIZE 10M , $ 155.00 Bates 00752 Leather DuraShocks Oxford, Black, Size 9 NBrand New Black Marc by Marc Jacobs 'Seditionary' Pointy Toe Mary Jane Flats 39 , SANITA Floral Pattern Red Patent Leather Slip on Dansko Clog Shoe Women 32 KP , Steven by Steven Madden SCALED MOMBI GREEN MULTI FLATS sz 8.5 M & FREE SHIPPING!Vince Warren Slip On Shoe - Women's Size 7.5M, Fawn SatinDavid Tate Women's Whisper Strappy SandalCOLE HAAN LADIES 8.5 MEDIUM ALEXA PENNY MOC II BLACK LEATHER LOAFERS , Men/Women Robert Clergerie Paris Size 8 Shoes Complete specification Orders are welcome Great choiceDonald Pliner Dora Chrystal Metallic Suede Ballet Flats Size 9 , NEW DANSKO WOMEN'S ODELE SLIP-ON LOAFERS BRONZE METALLIC LEATHER 38 8 MED $145 ,
    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9 ->NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9 -
    NEW $600 DOLCE & GABBANA Boots Yellow Rubber Knee Rain Shoes s. EU39 / US8.5Kamik Women's SiennaF Waterproof Winter Boot Black 7 M USMizuno Wave Rider 22 Black Multi Color Women Running Shoes Sneakers J1GD1837-09 , Pleaser TABOO708 clear/black pole dancing shoes US8 NEVER WORNCole Haan Women Studiogrand Embossed Floral Sneakers Shoes Leather Gray BlackOriginal SAS Duo Black W Wide 0087-020 Women , Qozmo Rose Gold Hi Punk Emo Goth Rocker Adult Womens Platform Heel Shoe Sneaker , Cole Haan Women's Lexington 85 Dress Pump, Black/White/Black Nubuck, 10 B USAnthropologie E'clat Italy 6 - Beige Platform ankle strap SandalsSkechers BOBS Women's Wagparty Slide Sandal - Choose SZ/ColorNIB Christian Louboutin Ionescadiva 150 Lagune Blue Platform Pump Heel 39 $1095Man/Woman Beads Sandals Slippers Flip Flops Fashion pattern discount Excellent workmanshipMENS NIKE ZOOM SOLDIER VIII "LEBRON" SALT / HYPR PNCH / SWD / MGNT GR SIZE 9.5NEW SUPRA VAIDER 2.0 GREY WHITE 08042-015 HIP HOP RAP SKATEBOARDING SHOES 9 , Jordan Jumpman Team II 2 Red & White Men's Size 11.5 New Without Box 819175 601 , Nike Kyrie Irving 4 IV Cinnamon Toast Crunch Cereal Bred Brown Gold Mens & KidsReebok Kamikaze ll Black/White Basketball Shoes Size 12LL L.L. Bean Duck Outdoor Hiking Trail Boots Low Moccasin Brown USED Size 13 USAJOHN MOORE Men's Shoes 867828 Black 8 1/2Xtratuf Men's Legacy Steel Toe 15 in. Non-Insulated Copper Tan Size 5 Boot , Mamma Mia Halloween Costume 60s Tony Manero Rave Cosplay Disco Elvis PresleyNike Jordan Formula 23 Low White Wolf Grey Men Casual Shoes Sneakers 919724-103Men Hugo Boss Shoes Storm_Runn_act Sneakers Blue Size 13Ladies Adidas Supernova Glide Boost Size 10.5 Worn TwiceNEW ASICS WOMENS GEL CUMULUS 18 RUNNING ATHLETIC SHOES SNEAKERS - NAVY BLUE - 5Portuguese Water Dog Print Slip Ons For Women-Express ShippingHush Puppies Classic Walker Sneaker, Women's Size 8.5, White/MultiRevere Comfort Shoes Women's Charlotte Flat Taupe Mesh FlatsJessica Simpson Women's Delaine Boot - Choose SZ/ColorLot Black Silver Gold SHIMMER RHINESTONE ACCENT PLATFORM WEDGES FAUX LEATHER
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9 -

    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.

    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9 -

    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
    NIB Auth Size Badgley Mischka 'SECRET' Black Silk 'SECRET'/Sequin Leather Black Dressy Flats Size 6M 89ef6e9