Never miss an update

Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af

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
UPC: 0722630396086
Color: black Brand: Lucien Piccard
Size Type: Regular Model: LP-40053-RG-01
Material Type: leather calfskin MPN: LP-40053-RG-01
EAN: 0722630396086
Never miss an update

Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af -

    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af
    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af
    Men's Shoes Philippe Model Anthracite Paris West Sneaker Fall Winter 2019 , AUTHENTIC LUXURY PRADA SLIPPER SHOES 2E2720 BLACK NEW US 11.5Invicta Mens JT Automatic Stainless Steel Casual Watch, Color:Black (Model: )New $850 Sutor Mantellassi Green Shoes - Loafers - 12/11 - (SM5400244147) , AUTHENTIC LUXURY PRADA LOGO LOAFER SHOES 2DD115 GREY NEW US 10 , LUXURY PRADA SAFFIANO LOGO LOAFER SHOES 2DD125 BLACK NEW US 6.5 , men's shoes CHURCH'S 12 () classic white suede AH486-FBRUNO MAGLI Pisa Men Premium Leather Dress Shoe Cognac Brown , Roberto Serpentini 47707 Brown Leather Zip-Up Ankle Boots 41 / US 8 , Belvedere Men's Vasco Genuine Hornback Crocodile Soft Calf White Shoes 336122P-359186 New Bally Cuir Calf Bronze Brushed High Top - US 8 - Marked 41 , Emporio Armani EA7 Shoes Sneaker Sz. 7 Man White 2480057A299-10 PUT OFFERDaniele Alessandrini Shoes Sneaker Sz. 41 Man Black F7178KL4633606-1 PUT OFFER , Men's shoes casual leather model MARCO Us size 2 to 12.5 , Roberto Serpentini 47701 Brown Leather Zip-Up Ankle Boots 44 / US 11Roberto Serpentini 47205 Black Leather Zip-Up Ankle Boots 44 / US 11$600 Sutor Mantellassi Black Shoes Size 10 (US) / 9 (EU)Men's shoes casual leather model HANDY Us size 2 to 12.5 , Saint Laurent Wooly Soft Low Top Athletic Star Sneakers NIBRoberto Serpentini 47701 Brown Leather Zip-Up Ankle Boots 45 / US 12 , Roberto Serpentini 47205 Black Leather Zip-Up Ankle Boots 45 / US 12 , $800 Sutor Mantellassi Green Shoes Size 7 (US) / 6 (EU) , Gentlemen/Ladies Mauri M770/1 Black Crocodile Tail Sneakers New market real Complete specifications , Hogan Shoes Sneaker Sz. 7,5 Leather Italy Man Blue HXM2540Y820-HK1111L PUT OFFERMen's shoes casual leather model HANZEN Us size 2 to 12.5 , Emporio Armani EA7 Shoes Sneaker Sz. 9,5 Man White 2480057A299-10 PUT OFFERmen's shoes GIANFRANCO BALLIN 7 () black leather AP237-D , Men's shoes leather model ANTHONIO Us size 2 to 12.5Gentlemen/Ladies Hogan HXM2090P2106Q6R810 Brogue Men's Bordeaux US Modern technology New style Clearance sale
    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af ->Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af -
    DOC DR. MARTENS LIBERTY OF LONDON STRAWBERRY THIEF BOOTS RARE 6UK US: WOMENS 8NEW $498 TORY BURCH SOFIA RIDING BOOT LEATHER KNEE BLACK LOGO 7FRYE Women's Gemma Tall Shearlingsvlos Winter Boot, Black, 6 M US , K Swiss Welford Mens Reversible Tongue White Lo Casual Mens Trainers ShoesFinn Women's Garmisch Leather Boots Chimera 3911-900468 , NIKE MENS AIR MAX 97 ULTRA SEPIA STONE DESERT SAND SHOES 2018 **BEST SELLER , Man's/Woman's Nine West Women's Oreyan-W Leather bargain Let our products go to the world wonderfulNEW DR MARTENS PATRICIA BLACK LEATHER MARY JANES FLATS SHOES LADIES ORIGINAL DOC , Pierre Hardy Womens Loafers Size 40 Black Patent Leather Slip On Round Toe , HOGAN WOMEN'S LEATHER SLIP ON SNEAKERS NEW INTERACTIVE BLACK F9DMen/Women Valentino Espadrilles 39 superior online shop Complete specificationsMan/Woman Clarks Women's Mayra Dove Pump Elegant appearance Clearance Brand feastPleaser Pink Label Womens Pinup01/r Platform Pump 13US- Pick SZ/Color. , Bruno Magli Women's navy classic navy suede leather shoes US 9.5 B Made in Italy , Women’s Pancaldi For Diane B. Metallic Lime Green Kitten Heel Shoes Size 38NIB Christian Louboutin Pigalle Follies 100 Pink Rosa Suede Pump Heel Shoe 37ASICS GEL VENTURE 6 T7G1N 4990 INDIGO BLUE BLACK MEN SHOES SIZE 8, 8.5 & 10.5 , Men's Women's Lover's Boots High Top Super Warm Casual Martin Shoes , Saucony Cruel World Bait Yeezy Off White Cactus Jack Size 13 , Nike Jordan Ultra Fly Shoes NEW AUTHENTIC Mid Navy/Silver/Blue 834268-401 SZ:10 , Los Altos BLACK Caiman Crocodile Square Toe TPU Rubber Sole Western Boot DRed Wing TRACTION TRED 6" Mens Oro-iginal Leather 10875 MADE IN USA Moc Boots , 1711 Magnanni Gerardo Medallion Gray Leather Oxfords Shoes Size 8.5 MSkechers for Work Women's Relaxed Fit Ghenter SR Shoe Dark Grey Size 8.5$100 Adidas Tubular Shadow Womens Athletic Running Shoes size 10 - NEW NWOT , NIke Free Viritous Bright Crimson Blue Elm Mesh WOMEN'S SZ 6 Brand New in BoxNEW ZEE Alexis Dawn Ankle Boots Black Size 10.5 () , VINCE CAMUTO NEW Women's Black Stretch Over Knee Boots TEDOWomens VERA WANG stylish brown leather ankle boots shoes sz. 5.5 M EXCELLENT! , Catherine Malandrino Sorcha Over-the-Knee Stretch Boot - Black Suede US Size 6 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af -

    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.

    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af -

    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
    Lucasarts Quartz Lucien 29991 Piccard Mens Trevi Analog Display Display Quartz Black Watch db045af
    Casual Shoes