Never miss an update

$248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c

Item specifics

: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
Brand: John Varvatos
Style: Fashion Sneakers Upper Material: Leather
Width: Medium (D, M) US Shoe Size (Men's): 10
Color: Black Material: Leather
Never miss an update

$248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c -

    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c
    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c
    SAS Tripad Comfort Time Out Walking Diabetic Casual Oxford- USA Men's 10 M BlackMen's French Shriner RICHARD Size 9.5 M Brown Suede Oxford Shoe Sn: FMC-4779 , MEZLAN 12M $375+Spain Dress/Casual Strong 9 out of 10 condition $AVE BIG! , Walker men's Western Black boot 692 Size 7 D NEWECCO Men's HOLTON Slip On Penny Loafer Shoe / US 11-11.5 , Men's COLE HAAN ZERØGRAND Wingtip Oxford MARINE BLUE/IVO Size 10M Retail $270Tod's GOMMINO Suede Bow Boat-Stitched Green Loafers Size 8 US 9 , POLO RALPH LAUREN MEN'S SHOES COTTON TRAINERS SNEAKERS NEW VAUGHN BLUE 972Maraolo Mens Capped Oxford Brown Shoes Size 11 US CXF , Cole Haan Men's NEW Pinch Road Trip Penny Loafers Leather Slip On ShoesNIKE AIR MORE MONEY MEN'S SNEAKERS AR5401-100 MSRP: $160 , Rockport Taupe Suede Mens Loafers Size 8.5 , Polo Ralph Men’s Lauren Barron Camo Burlap Espadrille Size 12POLO RALPH LAUREN MEN'S SHOES COTTON TRAINERS SNEAKERS NEW VAUGHN BLUE 7C0New Baldinini Men's Leather Sandals Shoes Black 9 US ( 42 Eu ) ItalyNew Vince fashion sneakers Men shoes size 10.5 , COLE HAAN ZEROGRAND WINGTIP OXFORD WITH STITCHLITE BLUE SIZE 9.5 NEW (C25755) , LACOSTE Misano 15 LCR SRM Men Off White Blue Red Sneaker Leather Suede Size 13Dr. Martens England Leather Long Wingtip Casual Oxford Shoe Men's / US 12Rancourt Suede Camp Moc Mens Shoes 9D 9 D Boat Shoes Quoddy Yuketen Climer Trail , Solebox Reebok Pump Omni Zone Red Glow in the Dark Question Answer Rare Retro , Men Fred Perry Shoes B721 White Sneakers New AuthenticRockport Men's Gyk Blucher Tan Shoes CH1770Keen Atlanta Cool Steel Toe Work Shoes Men's Size 10 D Black 1006977DNaot Slip On Oxfords Shoes - Men's Size 13, BlackSAS Men Shoes Side Gore Black 9 W W Wore Once , Nike Air Jordan 1 Mid Men's Blue Basketball Shoes Sneakers Sz US 11.5 /Kenneth Cole REACTION Men's Think I Can Fashion Sneaker, White Combo, 11.5 M US , Clarks Unnature Easy Mens Black Leather Casual Dress Slip On Loafers Shoes ,
    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c ->$248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c -
    Rag & Bone Harrow Braided brown leather Ankle Boots sz / US 10 , Dansko Shirley Boot - Women's Taupe Suede 41.0 , Designer Sonia Rykiel Worn Once Size 39 Platform Blue Leather Women's Sandals , Oroton Sepia Bow Pumps Black Leather Size 39 Excellent Condition , NEW!! Tods Fringe Sandal- Orange-Size-US 6.5/EU36.5- $650 (P61) , Klogs Brisbane Womens Closed-back Clog Black Smooth - 9.5 MediumNEW J CREW flat ballet shoes Italy made 8.5 8 1/2 Bow Orange RedCape Robbin Mini 110 Black Women's Thigh High Embroidered BootMIU MIU T.38 chaussures escarpins compensés cuir l'aspect lézardTPS Latin Ballroom Salsa Custom-made Dance Shoes D684Puma Clyde Leather BHM - White - Mens , Nike Air Max 2015 Shoe Mens size 10 Black White 698902-001 , Adidas Adi-Ease Classified White Grey Black Sz 9.5 F37846Nike Air Jordan Ultra Fly 2 White/Infrared 23-Black 897998-123 Men's SZ 11.5Brand New Nike Air Max 360 Diamond Grif Men's Athletic Sneakers [580398 500] , New Balance Men's 696v3 Tennis Shoe - Choose SZ/Color , Gentleman/Lady MEN’S SHOES DIADORA N9000 ITALY 501.170468 Guarantee quality and quantity a variety of Full range of specifications , Nike Air Max 90 Ultra 2.0 Flyknit Mens Running Shoes College Navy Blue Size 10.5 , Nike MAISON DU LEBRON XI 11 COLLECTION METALLIC LUSTER GREY VOLT YELLOW ICE BLUEAdidas Flavours of the World Adicolor St. Patrick's Day Shoes NewMan's/Woman's Creative Recreation Desimo Boots Men's Shoes Long-term reputation low cost Pick up at the boutique , NIKE MAGISTA OBRA II AG-PRO TOTAL CRIMSON ORANGE-BLACK 844594-806 SZ 7Used Rockport Mens 13 Brown Leather Moc Toe Mid Hydro-Shield Waterproof Boots , English Laundry Pinner Fashion Sneaker - Men's Size 10.5 Black/Navy , Mens Crocodile Leather Dress Business Buckle Formal Business Vintage Retro Shoes , Asics GT-2000 Running Shoes Light Gray/Pink Women's US 7.5 (K2,28) , Nike Lunarglide 9 Women's Running Shoes SZ 6 Platinum Chrome Blue 904716-014 , Womens Suede Warm Winter Fur Lined Flats Pull On Snow Ankle Boots Shoes Fashion , Womens Faux Fur Over The Knee Winter Snow Boots Buckle Strap Warm Shoes chic 18Aldo Womens jeffres Fabric Almond Toe Over Knee Fashion Boots, Khaki, Size 7.5 U
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c -

    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.

    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c -

    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
    $248 10 John Varvatos Star mogochinese-29888 H 29881 High-Top Leather Sneakers Size 10 M [F2493U1B] bb9bf3c
    Casual Shoes