Never miss an update

NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44

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
Fastening: Zip
Width: Medium (B, M) Style: Booties
UK Shoe Size (Women's): 4 Boot Shaft Height: Ankle
Features: Zip US Shoe Size (Women's): 6
EUR Shoe Size (Women's): 36 Heel Height: Low (3/4 in. to 1 1/2 in.)
Color: Pink Material: Velvet
Brand: Gentle Souls UPC: Does not apply
Never miss an update

NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44 -

    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44
    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44
    Womens LOUISE ET CIE dark brown leather short boots shoes sz. 7 M $149Womens DV / DOLCE VITA Black Suede Ankle Boots / Wedges Sz. 9.5 , CLARKS Women's Fenner Nerice Flip Flop - Choose SZ/colorColumbia Women's Minx Pull On Omni-Heat Winter Boot BL1591-010 NewMan/Woman Lucky Brand Latinia Bootie Excellent craft Modern and stylish fashion Authentic guaranteeWomens ALDO black / gold knee high boots shoes sz. 6 NEW! , 1C2 Andre Assous Larissa Black Side Zip Round Toe Booties Casual Women Shoe Sz 6 , *Womens Diba Maroon Fabric Ankle Boots Sz. 7 M NEW !LUCKY BRAND HELOISSE DARK MOSS SUEDE KNEE HIGH HARNESS RIDING BOOT HIBISCUSWomens 14th Union Stylish Black Suede Ankle Boots Sz. 7.5 M , Womens Topshop Black Leather Ankle Straps Boots Sz. 37 , Gentlemen/Ladies Jessica Simpson Women's Merta Fashion Boot Charming design excellent cheaper , GEOX Brown Distressed Leather Side Zip Knee High Harness Boots Sz 40 B3880ZIGI SOHO Women's Black Leather Short Boots 203365 Sz 9.5 M , Indigo Rd. Women's Jabaret Boot, Light Brown Fabric, 8.5 M US 50%OFF , 6B10 Coolway Casual Suede Heels Fringes Booties Camel Fashion Women Shoes Size 5 , Justin Brown Leather Boots Women's Size US 7.5 D Slip-On Cowboy Western Style , Crocs Women's Carlie Cutout Clog - Choose SZ/colorWomens OLIVIA MILLER black shimmer silver ankle boots sz. 6 NEW! $85EXCELLENT CONDITION - WOMEN'S COLUMBIA BUGABOOT BOOTS BL1167-160 SIZE 6.5Naughty Monkey Size 8.5 Black Suede Chelsea Boot Casual Tall $129 NewWomens DV DOLCE VITA Brown Knee High Boots Sz. 5.5 NEW!Black Pointy Thigh High Over Knee Close Toe Block Heel Boots , Women's ANNE KLEIN 227338 black suede pull on wedge booties sz. 7 MVince Camuto Duke Knee High Leather Boots Brown Black Block Heel Shoes 5.5 CrestEXPLORE 24 EASY SPIRIT "LOCKDOWN" black leather winter boots sz. 6-6.5 NEW! $99Skechers Performance Women's Go Step Lite Slip-on - Choose SZ/color , AMALFI Chestnut Suede Leather Molded Wedge Ankle Boots Booties Sz 8.5 ITALYPenny Loves Kenny Women's Frank Combat Boot
    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44 ->NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44 -
    adidas SolarHu (Solar Pack ) - US 9 - Light PinkReebok Furylite Room Runner Shoes Beige White BD1974 SZ 5-12.5 100% Authentic , Man/Woman NEW Hush Puppies Cale Black superior First quality King of the crowd , Artigiano LEATHER LOAFERS Red Size 40 SH01Gentlemen/Ladies Gamins black leather short boots service Order welcome professional design , OLIVER CLARK BLUE SUEDE LEATHER POINTED TOE HANDMADE OXFORD SHOES 9 FITS 8 NEWDolce & Gabbana Black Patent Leather Shoes with Pink Laser Cut Flower. 39.5 , ROSE BUD Shoes 797297 Grey 35 , Gentleman/Lady Pollini Italian shoes size 37 Practical and economical Won highly appreciated and widely trusted at home and abroad Strong heat and heat resistance , Womens Open Toe Strap Back Zipper Bandage Stilettos High Heels ShoesJ. Renee Imbre Gold Butterfly Rhinestone Embellished Thong Kitten Heel - $99.95 , Pleaser INFINITY-997 Platform Double Criss-Cross Ankle Strap Sandal 9" HeelEUC Stuart Weitzman platinum patent leather with stretch ties and sturdy heel 7Brown Leather EL NATURALISTA IKEBANA Leaf Leaves Strap Slides SANDALS 39 SPAINDolce Vita Women's Witley Heeled Sandal /Brown / Size 9 USBirkenstock Women’s Granada Oiled Leather Soft Footbed 37 Size 6-6.5 , NEW BALANCE Fresh Foam Arishi shoes for men, NEW, E.WIDE 4E, US size 8REEBOK WORKOUT PLUS EG 8-13 BLACK WHITE GUM CN1050. CL CLASSIC , Altra A1333-1 Instinct 2.0 Running Walking Zero Drop Shoes Blue White Mens 11.5ASICS Snapdown 2 Shoe Unisex Wrestling black-J703Y.9090PUMA Men's BMW MS Speed Cat Evo Sneaker - Choose SZ/Color , Nike Air Force 1 SUPREME MCO I/O 07 BALTIMORE PINE GREEN STONE OLIVE GREY 10.5 , Nike Air Max 90 Woven Vachetta Tan Leather 833129 200 9.5 Off 97 1 Atmos Sw LabPOLO RALPH LAUREN MENS NEW NAVY BLUE TECH NUBUCK FASHION SNEAKERS SIZE:11.5Dr Scholls Fresh One Grey Womens Orthopedic Shoes Size 8.5M , Womens NIKE WILD TRAIL Pink Pow Textile Trainers 643074 602 US 7Air Jordan 11 Low WMNS“Rook To Queen” Fuchsia Blast Maya More AR5149-005 Sz 5~12 , Womens STEVE MADDEN OLAAF Black COLOR ANKLE LEATHER BOOTS WOMEN SHOES SIZE 7 , Fashion Women Round Toe Buckle Strap Block Heels Ankle Boots Punk Shoes SizeSkechers Women's Synergy 2.0-Mirror Image Wide Fas - Choose SZ/color ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44 -

    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.

    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44 -

    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
    NEW NIB GENTLE SOULS Blush $119 Sneakers Velvet CAROLE Zip Ankle Ankle Boots Booties Sneakers 6 $119 59eab44