Never miss an update

Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Brand: Crocs Inc.
Color: Black Style: Ballerinas
Sole: Synthetic Material: Synthetic
Inner Sole: Synthetic
Never miss an update

Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4 -

    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4
    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4
    Skechers Shape Ups X Wear Determination Safety Toe Work Shoes Womens 8 Anti SlipNEW Zara Women Espadrilles Snow Leopard Print Calf Pony Hair Shoes 41/ 9.5 to 10IOANNIS DELH YELLOW WOMENS PLATFORM CASUAL SNEAKERS SIZE US 9 , Clarks Womens Shoes Ashland Bubble Brown Multi Color Size 9N NewSANITA PROFESSIONAL 36 RED PATENT IN GREAT CONDITION WOMEN'S , Women's EASTLAND Gia dark walnut Leather , Madewell Womens Teddy Gold Studded Loafer Shoes 8.5M Black Suede Slip On 36808 , Naturalizer Womens Saban Navy Slip On Loafer Size 6.5 WIDE $79BORN BROWN LEATHER HEEL LOAFERS MARY JANES BUCKLE SHOES WOMENS SZ 10 M , Clarks Privo Sofrito Slip On Shoes Women's Size 9 (M) Brown Nubuck Loafers MINTSANITA PROFESSIONAL Gwenore - EMBOSSED SZ 36 BROWNS NEW WOMEN'SOlukai Pehuea - Women's Casual Shoes Ohia Red/ohia Red - 8Stuart Weitzman 5.5 Gray Wool Buckle Square Toe Slip On Career Flats Shoes PumpsReebok Classic Freestyle Hi Metallic Feather Blue/White Womens Shoes CN0959Gentlemen/Ladies NEW MANGO WOMENS KNOT HEEL SHOES superior luxurious A balance between toughness and hardnessAnnaKastle Womens Backless Slip On Slide Sneakers with Gold ChainCamper Right Nina 21595 Nude Leather Ballet Flats Size 36Womens Enzo Italian Brown Brushed Leather Soft Loafers NIB Womens 9 /Eur 40 , TOD'S women shoes sz 7.5 Europe 38 brown suede .S6634 , sperry's womems boat shoes sz 5 laguna maroon , Born Concepts Size 7 Burgundy Clogs New Womens ShoesREPETTO BALLET FLATS IN NUDE PINK - SZ 38 And US 7 Or 7.5New Women Sperry Top Siders Milly Purple Floral Canvas A/O Boat Shoe Size 8Lands End Suede Owl Ballet Flats Size US 9ECCO Womens Aimee Perforated Slip on Fashion Sneaker- Pick SZ/Color. , SANITA PROFESSIONAL SIZE 38 MARY JANE BLACK LEATHER WOMEN'S 000 , Merrell Luxe Wrap Clogs Bitter Chocolate Oiled Nubuck US 7.5NEW STUART WEITZMAN LOAFER~MADE IN SPAIN!~SZ. 7.5~RETAIL: $200~GORGEOUS!**New** Earth Date Sneaker - Nordstorm - Size 6B ,
    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4 ->Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4 -
    Bearpaw Boo - Women's 7 Inch Furry Boot - 1854w White - 8New Balance WS215RC B 215 Pink Silver Women Running Shoes Sneakers WS215RCBDrew Women's Flare Athletic Shoes White Leather & Perf/White Mesh , Gentlemen/Ladies Rose Embroidered slip on Vans elegant comfortability Immediate deliveryGalo Italy Black Patent Leather Cap Toe Slingback Pumps Size 41/ 9.5 , Clarks Linvale Jerica Heel Pumps Leather Womens Mid Heel Pumps Shoes Mid HeelPour La Victoire Celina Black Womens Shoes Size 10 M Heels MSRP $275Salvatore Ferragamo White Niccola Calf Leather Pump Heel Womens 8.5 AA 8 1/2$175.00 Pedro Garcia Black Leather Heels Sandals sz: 35.5 (5.5) , PRADA Women’s Real Leather Boots Sz : US 11 ( ) NEWJack Rogers Palm Beach Sandals Size 9 Pink Brown Leather , Cole Haan W07754 Womens Grandpro Hi- Choose SZ/Color.Jack Rogers Capri Raffia Womens Wedge Sandal- Choose SZ/Color.Bamboo Women's Single Band Chunky Heel Sandal Ankle StrapMen's/Women's Diadora Sirio - Black - Mens Modern technology fashionable Fair priceAsics Gel Lyte III 3 Running Run Shoes Plaid Red Black Men sz 7.5 H6Y0L-2490 New , Adidas Originals Men's Indoor Super Casual Shoes Sneakers Black - CQ2224Mens Nike Zoom Tallac Lite OG 844018-002 Pure Platinum Brand New Size 8 , Nike Air Max TL4 Prm laser Sz 12 , NEW MEN'S NIKE AIR MAX 90 ESSENTIAL 537384-309 s 11.5 , Men’s Nike Air Jordan XXXII 32 “CEO” Black Blue Purple (AA1253 016) Size 12 , LAREDO MENS 12 D BLACK LEATHER ROUND TOE WESTERN COWBOY BOOTS ROPERS , Sperry Men's Authentic Original 2 Eye Slip On Boat Shoes Brown 0195412 Size 9Reebok Trail One Rush Toggle Up Black Purple Womens Trainers Shoes M44998 P6 , Mr/Ms Pleaser Women's Delight 601 Clear/Black Many styles Excellent performance Elegant and robust menu , New Balance CW620 Summit-W Womens Summit Running Shoe- Choose SZ/Color. , CONVERSE DECKSTAR SLIP ON LOW MISSONI US 8.5 EGRET MULTI 150402CBottes IKKS Tout Cuir Daim Beige T 41 TBEWomens Tassels Suede Over the Knee High Boots Mid Heeled Block Pull On Party NewNot Rated Women's Soset Ankle Bootie, Tan, 6.5 M US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4 -

    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.

    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4 -

    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
    Crocs Kadee Work Flat W Female 19034 Ballerinas Female Synthetic Black Flat Black 070e8f4