Never miss an update

ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b

Item specifics

: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
Style: Pumps, Classics
Color: Blue US Shoe Size (Women's): 5.5
Width: Medium (B, M) Brand: st john
Material: Leather UPC: Does not apply
Never miss an update

ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b -

    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b
    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b
    Man's/Woman's max mara shoes durability New style Different goods , STUART WEITZMAN Black Patent w/Woven Rattan Platform Heels - 6.5M -EXCELLENT A++Guess By Marciano Shoes Leather Sole SZ 7BCBGeneration Pike Womens Hazy Blue Wrap Around Rope Wedge Sandals size 8.5 , FABULICIOUS Flair-474 Series 4 1/2" Heel Party Prom Bridal PumpsNWOT AEROSOLES A2 CHERRY PLUSH BLACK WEDGE SHOES WOMENS 9 M NEW WITHOUT BOX , NINA (CRIANA SATIN BLACK PUMP) WOMENS SIZE 7.5 BRAND NEW!!Highest heel 'Marquis-11' Black patent Size 8 6" heel 2" platformVera Wang Sequin Channing Platform Heel Pump Shoes, Size 5 - $275.00 , $160 BOUTIQUE 9 RUNAWAY Beige Satin Designer Fashion Platform EVENING Sandals 10New Never Worn Vintage Casadei Leather Heels 7.5 , 7.5W J Renee POISE Pink Velvet Open Toe Strappy Twist Knot Formal Sandal Heel$190 ELLEN TRACY FASSA Gold Metallic Leather Designer ITALY Sandals 8 MSHOE BOX NEW YORK Brand New Italian Shoes Heels Stilettos SZ 37 US SZ 6 1/2California Magdesians Women's Black Leather Renee Loafer Pump Heel 10.5 W ShoesWomens BCBGeneration cheetah print fabric Mary Jane heels sz. 6 M $99Men's/Women's Matt Bernson Wedge Size 6 EUC Easy to clean surface a wide range of products Perfect processingNew Jessica Simpson Silea Size 9 Suede Sandal Heel T Strap Ruffle Open Toe $89EVAN PICONE Red Leather Bellino Port Kid Classic Pumps Womens, 8.5M Spain-B128ECCO Women Brown Leather Wedge Loafer Slip On Casual Dress Bicycle Toe Shoes 10M , EUC BCBG Wood Heel Multi-Color Leather Strap Heeled Sandals Womens 10Women's Brighton Tory Black Leather Heels w/ Black Beaded Flowers Size 8.5 NGuess Multi Color New Size 8 Heels , PLEASER Kiss-280 6" Heel Sexy Exotic Platform Pump , UNLISTED KENNETH COLE( SHARE IT BLACK FABRIC WEDGE) WOMEN'S SIZE 7.5 BRAND NEW!!NEW WOB EVAN PICON CLASSIC HEELS SIZE 6 M IVORY GOLD LEATHER MADE IN ITALYVANELI VAN ELI LIUBA WOMEN RED LEATHER POINTED TOE PUMP HEEL SHOES 6 NEW$180 VIA SPIGA BIMINI Black Beige Stripe Designer Fashion ITALY Sandals 9.5 M , Funtasma "Gangster 15" Black & White High Heel Mafia Mobster Costume Pumps 7/7.5
    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b ->ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b -
    Sportiva Walking on the Moon Hiking Boots (SKU: J1P3KN) , Pleaser Women's Adore-2024rsf Ankle Boot - Choose SZ/Color , Laredo Womens Spellbound Western Boot,Black/Tan,7 M USWomen's High Top Sneakers Shoe GALLIANO Variante CD Multicolor Exclusive LimitedMr/Ms giuseppe zanotti durable modern Strong heat and heat resistance , Ladies Gabor Mid Calf Boots Label 72062-WJCrew Collection $248 Academy Flannel Loafers 9 heather carbon shoes G8984 SWAGLeather Women Buckle Loafers Pointy Toes Block Low Heels Slip On Rivet New Shoes , Munro American Women's Gray Quilted Jerrie Slip-on Loafer Flats Size 9M , BADGLEY MISCHKA $200 BLUE SATIN HEELS PUMPS 7Womens Genuine Leather Sandals Platform Wedges Punk Creepers Shoes Oxfords New YSERGIO ROSSI Light Blue & Beige EMBOSSED Leather WEDGE SHOES Platform SZ 40 ST , $1055 Stella McCartney Knotted Wedge Sandals Slip Mules - Black Silver 7.5 (T45) , PRADA A/W 2013 Burgundy Red Spazzolato Leather Pointed Toe Platform Oxford Shoe , Vince Camuto Womens Jeneve Leather Open Toe Casual Strappy, Black, Size 6.0 YS0j , NWT Balenciaga 40C EU/9.5C US Leather Gladiator Turquoise Sandals Orig.575$ , NIB Men's Air Max Full Ride TR Running Shoes 819004 001 Black White GreyAsics GEL-LYTE 3 III (Black/White) MONOCHROME [H5B2N-9090] Running Mens ClassicNike Men's AIR MAX 90 ESSENTIAL BLACK/WOLF GREY Shoes 537384-053 c , adidas Originals Men's Superstar Triple - Choose SZ/Color , BZ568 BRIMARTS shoes blue suede men ankle bootsNike AIR MORE UPTEMPO 6 7 8 9 10 11 12 BLACK WHITE PIPPEN penny supreme olympicMENS SLIP ON BOAT DECK SHOES SUEDE LEATHER CASUAL MEN'S EVERYDAY COMFY LOAFERS , Madden Girl Women's Starstrk Fashion Sneaker - Choose SZ/Color , height quallity Fashion balenciaga woman shose MAILLE BLANC size7 Free Shipping , Adidas Women's CrazyTrain LT Training Shoes Size 5 to 10 us CG3496 , Saucony Kinvara 6-W Womens 6 Running ShoeUS- Choose SZ/Color. , Adidas NMD R2 PK Wonder Pink White BY9521 Women size 7 , Women's Used Nine West Knee High High Heeled Boots Size 10.5 M . PRICE DROP !!Punk Womens Buckle Ankle Boot Leather Retro Roma Moto Riding Cuban Heel Shoes SZ
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b -

    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.

    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b -

    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
    ST. ST. JOHN Leather Logo Shoes Pumps Midnight freedigitals-2346 Navy Blue PATENT TOES Gold Logo 5.5 B 291214b