Never miss an update

Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea

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: Calvin Klein
Color: Black Style: Driving Moccasins
Euro Size: 39 US Shoe Size (Men's): 7
Pattern: Pebbled leather Width: Medium (D, M)
Country/Region of Manufacture: China Material: Leather
UPC: 889655689989
Never miss an update

Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea -

    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea
    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea
    Cole Haan Men's Pinch Weekender Lx Stitchlite Penny Loafer , CALTO G60971 - 2.8 Inches Elevator Height Increase Fashion Sneakers BlackCLARKS SEKTOR 45 63192 MEN'S BLACK LEATHER SLIP-ON SHOES Sz 7 , Rockport Men's Liberty Square Penny LoaferBlack12 M USMens Trendy Pointy Toe Leather Youth Formal Party Nightclub Shoes Loafer 2 ColorLacoste Gazon Sport Slip On Sneakers White Mesh Leather New Sz 10.5US 9.5EUMan/Woman V-CREEPER-565 High quality and low overhead Impeccable best sellerDockers Men's Hillsboro Slip-On Loafer, - Choose SZ/Color , Cole Haan GrandPro Stitchlite Running Sneaker Vapor Gray Blue Knit SZ ( C27920 ) , New Men's Real Leather Driving Casual shoes Crocodile Print Loafer Slip on H5012Fratelli Rossetti men's gray suede tassel loafer size 40 Eu 7.5 USAir Jordan 1 Mid Black Team Orange Signal Blue Sz 9-12 NEWMens ECCO gray leather fashion sneakers sz. 44 NEW!Dockers Men's Sinclair Leather Casual Kiltie Loafer Shoe Antique Brown 14 DM US , Men's Real Leather Crocodile Embossed Casual shoes Formal Loafer Slip on SA29 , Mens CLARKS ADULTS - TILDEN CAP FORMAL/DRESS/WORK/CASUAL/LEATHER SHOESMENS JULIUS MARLOW MONASH MEN'S FORMAL/DRESS/WORK/CASUAL/LEATHER SHOESWolverine Men's Grogan Met Guard Safety Boots - Black W10210Cole Haan Size 8 M PINCH GOTHAM Woodbury Leather Penny Loafers New Mens Shoes , Skechers 77155 for Work Mens Wishaw Food Service Shoe- Choose SZ/Color.PUMA Touring Cat MAMGP White Silver Red Men's Sneakers 305079-01Polo Ralph Lauren RL 93 Canvas Boat Shoes Regatta 8.5 CPRL93 1992 summer92 Navy , Fashion Men's Diamante Round Toe Slip On Loafers Youth Gommino Leather Shoes , FRED PERRY MAN WOMAN UNISEX SNEAKER SHOES CASAUL FREE TIME CANVAS CODE B2153 , Xtratuf Men's Sharkbyte Chocolate Size 10.5 Casual Dock ShoesJack Rogers Men's Emmett Waterproof Loafer Driving Style Midnight Size 8.0 , Skechers 65293 USA Mens Walson Dolen Oxford- Choose SZ/Color.Skechers Watches SR5079 Mens Quartz Metal and Silicone Casual Watch, , Man/Woman Mens DC (BLACK/RED) Rival Shoes flagship store special function wonderful ,
    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea ->Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea -
    Women's Frye 'Diana' Cut Tall Studded Black Distressed Leather Boots SZ 7BPunk Women Rivet Flat Buckle Strap Gothic Leather Knee High Knight Boots Retro , Mens Nike Air Jordan 1 Retro High OG - 638471 008 - Black Infred Green TrainersMerrell All Out Blaze Sieve Vineyard Wine Women Outdoors Sandals Hiking ML37664 , NEW Fashion Womens Punk Zipper Block High Heels Round Toe Platform Party ShoesECCO Women's Durango Gray Mary Janes Wedges Size 40 /10 USMan/Woman Bates Women's Lites Shoe,Brown,7 EW US selling price Make full use of materials Fashion dynamicDKNY Sofia Pump Classic Heels 927, Burgundy Snake, 7.5 US / 38 EU , NWOB WOMENS RACHEL ZOE BLACK CREAM PATENT LEATHER PLATFORM HEELS SIZE 7 , *Gorgeous Bordello 5.75" Heel Pink Glitter Platform Show Bow Dancer Pumps 9Womens Multicolor Shiny Leather High Heel Sandal Pumps Butterfly Party Shoes New , Rhinestone Gladiator Women Sandals | High Heels Shoes | String Bead Summer Shoes , Skechers Women's Sage Flex Appeal 2.0 - Insights Running ShoesTahari Womens ta jodi Closed Toe Knee High Fashion Boots , RARE Goodyear Vulcan Var Canvas Sneakers Men's Size 7 1/2 , VANS SK8-HI NAVY VN000D5INVY MEN US SZ 7 , Mens Nike Air Max 2011 shoes Sneakers USED 429889 044 size 12Nike Air Force 1 High '07 Harlem Uptown QS Shoes -Size 7 -573967 500 Nike Air Foamposite One Premium Shoes Size 11 Metallic Silver Volt 575420-004 , Skechers Women's Go Walk Casual Lite-15372 Wide Black Gray Sneaker 15372 WBKGYNEW UNLISTED BY KENNETH COLE MENS COMMENT-ARY BOAT SHOES GREY 10.5 MED $85 NIB MInvicta Mens Vintage Automatic Stainless Steel Casual Watch, Color:Silver-TonedFila Men's F13 Biking Red/Fila Navy/White Walking Shoes , MERRELL Sneakers Bare Access Ultra Turquoise Blue Women's Shoes US 6.5 $89 , PUMA Women's Speed Cat SD US SneakerNEW TEVA WOMENS ARROWOOD WATERPROOF HIKING SHOEDIADORA WOMEN'S SHOES SUEDE TRAINERS SNEAKERS NEW TITAN II W GREY A14 , Nike Air Zoom Fearless Flyknit Womens 850426-101 Melon Running Shoes Size 9 , Sofft Womens Brown Leather Boots 6.5 M , David Tate Women's Doran Ankle Boot
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea -

    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.

    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea -

    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
    Calvin jayhmarketing-563 Klein Men's Miguel Perforated Leather Men's Driver 7 Loafers Black Size 7 M 39259ea
    Casual Shoes