Never miss an update


Item specifics

New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Shoe Type: Mixed Items
Brand: DVS
Never miss an update


    Rieker Women s L0912 Hi-Top Trainers, Blue Jeans Denim , 5 UK , FANE Footwear - Urban Range - Navy BlueGentleman/Lady Crocs Lo Pro Canvas Mens Plimsolls wholesale Sufficient supply Outstanding style , Man shoes from Nike White YellowSize 8(US) 41FANE Footwear - Brogue Sailor Blue - Men's Shoe , Man/Woman Red zx fluxes fashion Medium cost Modern and elegant , Rieker Men s 17315 Derbys, Blue Ozean Ozean Offwhite Polvere 15 , 8 UKMen's/Women's Double Oak Mills Excellent value Win highly appreciated Current shapeRieker Women s L6548 Hi-Top Sneakers, Grey Anthrazit Fumo Anthrazit 45 , 5 UK , CONVERSE All Star Chuck Taylor Navy Unisex Shoes Size 7 (UK) NEW , DVS SPRING 18 AVERSA+ BLACK WHITE SUEDEFly London Men TOBI236FLY Low-Top Sneakers, Blue Navy 000 , 9 43 EUGlobe Motley, Mens Low-Top, Brown TaupeAntique, 11 EU , Rieker Men s 15222 Low-Top Sneakers, Blue Ozean Atlantis Polvere 15 , 7.5 UKRieker Men s 15875 Loafers, Blue Pazifik Denim Ozean 15 , 8 UK , Geox Damon, Men Mocassins, Black Black , 10 EU , PeopleSWalk Mens Grant Fashion Trainer TaupeCastaer Womens Nerea Ss18003 Espadrilles, Blue Light Blue 301, 7.5 UK , Gentlemen/Ladies Canvas Loafers-Driving shoes-Handmade economic Optimal price comfortable , Men's/Women's Delta Grey Nubuck quality New products in 2018 Complete specificationsEcco Men s Soft 7 Hi-Top Sneakers, Black Black LION59075 , 10 UK , Josef Seibel Schuhfabrik GmbH Dominic 02, Men s Derby, Grey Vulcano 707 , 11 UKGeox U Moner W 2Fit, Men s Mocassins - Brown Light Brown , 8 EUDVS SPRING 17 AVERSA - BLACK RASTA CANVASRieker 8969, Men s Loafers, Brown Toffee zimt 25 , 11 EUEl Naturalista Men s NG21 Pleasant Wood Yugen Loafers, Brown Wood Nnd , 7 UK , Men/Women Delta Brown Nubuck Various goods online shop Selling new productsDVS WOMENS TRIPP HI - BLACK BATIX CANVASGeox Men s Uomo Federico A Derbys, Black, 7.5 UK ,
    Fendi Womens Ankle Boots Size 40.5 Black Patent Leather Peep Toe High Slim Heel , JEFFREY CAMPBELL CROMWELL TAUPE DISTRESSED SUEDE POINTED TOE WESTERN BOOTIE 10M , NEW DESIGNER DUNE BLACK SUEDE POINTED STUDDED PATENT HIGH HEEL SHOE BOOT 9.MED , Frye 77300 Harness Brown Leather Motorcycle Riding Riding Boots Women's Size 7 , Manolo Blahnik Patent Leather Thigh High Boots Sz 7 Stiletto Heel Dominatrix ModCOUNTRY ROAD SUEDE MENS SHOES SIZE 46 MADE IN PORTUGAL EXCELLENT CONDITION , DC SHOES WOODLAND MILITARY SHOES WINTER NEW FW 2018 44 45 NEW SNOW WINTER , Gentleman/Lady Ladies Remonte Boots Label D8173-W Online Shopping First batch of customers Reliable reputationVINCE CAMUTO Women's Shoes High Heel Open Toe Leather Platform Size 10 , Nike Roshe NM Run Silver Grey Camo Mens Casual Shoe US11 - Pre-Owned / Worn , Skechers Work Relaxed Fit Sure Track Womens Slip Resistant Shoes Sz 7 Black EUC! , Splendid Women's Spl-Tobey Tuxedo Oxford - Choose SZ/ColorCrevo Women's Maeva Bootie Taupe Suede Size 10 MNative Apollo Moc Size 11 Jiffy Black Shell White 21102409-8191 , Converse One Star 103639FT Men's Black/White Low Top Sneaker Shoes Size 13 , Skechers Men's Go Walk Revolution Ultra Sneaker , ASICS GEL KAYANO TRAINER SZ 13 BLACK MARTINI OLIVE GREEN CAMO V HL7C1 9086Nike Alpha Huarache 6 Elite Turf LAX LE Men's Lacrosse Cleats 923423-155 Sz 13 , Keen Tucson Low Steel Toe Shoe - Men's Size 10.5 EE - Black/Grey , RED WING 9414 HERITAGE SHOES/BOOTS MADE IN USA 100% AUTHENTIC AWESOME BOOTSMagnanni 18598-5 Mens Gavin Chukka Boot- Choose SZ/Color. , 700$ Bally Avyd Navy Rust Suede High Tops Sneakers size US 9.5 Made in ItalyNew Mens Leather Breathable Casual Shoes Running Sneakers Sport Driving Slip onsAquatalia Men's Zayn Slip-On Loafer Black SZ 9.5 MSRP 395$ Made in ITALY , Dr. Martens Men's Edison Slip-On Loafer Cherry Red Size 7 US Men's TasselRetro Mens Wing Tip British Leather Vintage Mixed Color Business Dress Shoes NewShoes Skechers Flex Appeal 2.0-Warm Wishes Brown Women 12892-CSNT , Mizuno Wave Creation 14 Women's Running Shoes Beetroot/White/Purple Magic US 6 , Men's/Women's NEW FABRIZIO CHINI WOMENS ANKLE BOOTS High security Fast delivery Cost-effective , Steve Madden Womens Emotions Almond Toe Over Knee Fashion Boots Taupe Size 8.5 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017

    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.


    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
    Casual Shoes