Never miss an update

Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0

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: Lacoste
Features: Ortholite Style: Lifestyle
Feature: Ortholite MPN: 7-36CAM0052-267
Closure: Laces Width: Medium (D,M)
Shaft Height: Low-Top Color: Brown
Occasion: Casual
Never miss an update

Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0 -

    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0
    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0
    adidas Crazy Explosive 2017 Pk - Blue - MensADIDAS TERREX SOLO BB5562 MEN'S OUTDOOR SNEAKERS TREKING NEW MODEL 2018!Nike Cortez Basic Special Edition brown men's low-top suede sneakers NEW , Nike Womens Air Max 1 SE Running Trainers 881101 300 Sneakers Shoesnike SB stefan janoski max mid mens trainers 807507 414 sneakers shoesAir Jordan Retro 5 Grape Size 8 , Man's/Woman's Air jordan xxxii low Elegant and sturdy set meal First quality cheaper , Adidas Originals Spezial Indoor Comp Spzl White Blue Gum Sneakers New Men B41820Nike Dunk High NL 'No Liner' 311296 131 Size 8 , MEN'S NMD_R1 SHOES - Trace Grey Metallic - US 7 Mens - Brand New With Boxnike air max 1 PND QS mens running trainers 825861 004 sneakers shoesAdidas Originals ZX 710 Ice Grey/Aluminum/Glow Retro Running Shoes D65784856958-001 Nike Men Air Max 1 Ultra Flyknit Black Anthracite , Adidas Handball Spezial Athletic Sneakers Suede Retro Spezia Shoes 48 Size US-13Gentleman/Lady Nike Air Trainer Huarache (Cactus pack) Great variety Latest styles Shopping promotion , Nike Air Max Penny IV anfernee Hardaway Orlando Magic OG 864018-100 royal blue , Man/Woman Addidas High Top Sneakers Modern technology Impeccable Full range of specifications , Nike Air Jordan 7 Bordeaux Size 10Nike Womens Air Max Thea Ultra PRM Running Trainers 848279 100 Sneakers Shoes , Man's/Woman's Nike Air Bakin’ sz 11.5! elegant Various types and styles Valuable boutiqueMen's/Women's Nike Flyknit Lunar 2 service a good reputation in the world high quality product , Adidas Men's CrazyTrain Elite Shoes Size 7 to 13 us BA8002 , Men/Women nike air presto Strong heat and wear resistance Skilled manufacturing Direct business , Jordan GRIND 2 Mens Black/University Red AO9567-023 Basketball Shoes , NIB DS AIR JORDAN 1 RETRO HIGH OG Gatorade mens SIZE 11 ORANGEAIR JORDAN Retro 1 anodized BLUE black BASKETBALL SHOES SIZE 9Man/Woman adidas pureboost 2017 Triple Black High security Known for its good quality Non-slipnike marxman mens hi top trainers 832764 600 sneakers shoesAdidas Originals Equipment Support ADV Womens Running Trainers BB2329 Sneakers ,
    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0 ->Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0 -
    Blundstone 500 Series Original Boot - Women'sGeox Respira Uomo Snake K Men Sneakers Low Shoes U4207K C9004 AnthraciteJessica Simpson Caysy Back Strapped Ankle Boots 619, Slater Taupe, 5 US / 35 EU , Bandolino Layita Dress Ankle Booties 949, Cognac, 9 USCheeks Fit Body2 Interchangeable Knit/Faux Fur Winter Boots Grey 8.5US DisplayReebok Fusium Run [CN2929] Women Running Shoes White/Grey , Ladies Skechers On The Go 600 Nitto Black/Grey , STUART WEITZMAN Black Suede Slip On Solid Marlow Flats Shoes EUC Bin 4181 , Skechers Women's Hi-Lite - Reptile Metallic Sneaker, - Choose SZ/Color , Dr. Scholl's Women's Wander Up Sneaker Hydrangea Malibu Microfiber LoafersEasy Spirit Motion navy blue leather oxfords flats walking shoes sz 8.5 Med NEWDansko Black Leather Clogs Size: 35 = 5 Excellent/Perfect Condition , Pleaser Women's Flamingo 801SDG Clear/Black Glitter Heelscasadei shoes woman red suede size 10 made in italy pumps bordeauxKenneth Cole REACTION Fine Glass 5 Perforated Sandals, Champagne, 7 US / 37.5 EU , Gentleman/Lady Sas Women's Quatro Sandal Crazy price, Birmingham Medium cost Pick up at the boutique , Man/Woman VANELi Womens Wedge Sandal- Pick SZ/Color. excellent quality Used in durability Exquisite (processing) processing , Women ballerinas suede model BALLET Us 3 to 12Nike Air Force 1 UltraForce HI Men's (9.5) Black 880854-005 Men AF1 High , NIKE FREE TRAINER 5.0 ID GYM RED/BLACK-WHITE SIZE MEN'S 10.5 [803218-991]NIKE AIR JORDAN D-ZERO ~ Mens Athletic SHOES White/Gray ~ Sz 14 , Nike Roshe One Mens 511881-026 Triple Black Mesh Athletic Running Shoes Size 11 , ADIDAS SUPERSTAR 35th ANNIVERSARY GRAPHIC SZ 9 white red blue le graffitiRockport Men's Classic Lite Penny Loafer Black/Black 15 DMUS , BX117 VANS OFF THE WALL shoes gray black suede women sneakersNike Air Max Thea LX Womens Size 8.5 Gunsmoke Suede Trim Velvet LinningNike Air Max 90 EX Guava Ice / White AO1520-801 Women Lifestyle SneakersNIKE WMNS AIR FOAMPOSITE ONE "DARK STUCCO" Size 9 AA3963 001 Dark Stucco/Black , RARES BOTTES CAVALIERES FEMME AIGLE T 38 MARRON ECRUES TOILE CUIR TTBE ACH I , Women Winter Snow Ankle Round Toe Boot Flock Platform Warm Fashion Casual Shoes ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0 -

    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.

    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0 -

    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
    Lacoste Brown Menerva 318 1 Mens - Brown - - Mens cdb46e0
    Athletic Shoes