Never miss an update

Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb

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
Brand: Lumberjack
MPN: Does not apply
Never miss an update

Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb -

    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb
    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb
    Cat Dimen HI SB P716837 Mens Dark Beige Leather Boots UK7-12 (R13A) , Mes Demoiselles goat skin Baboushka boots NWT size 37Centek FS129 Safety Dealer / Mens Boots / Dealers Safety (FS581)Grafters Mens Padded Safety Toe Cap Boots (DF572) , Amblers Steel FS161 Safety Boot / Mens Boots / Boots Safety (FS567) , 2018 Men Motorcycle Boots Waterproof Off Road Moto Racing Biker Leather Shoes***MENS DICKIES LANDMASTER GREEN NON SAFETY WELLIES BOOTS SIZE FW91105Asics Lethal Shot CS 4 Mens Lightweight Football Boots (9001)Boots Military leather Segarra Moto Size 36 37 38 39 40 41 42 43 44 45 46 47 , Northern Soul Mens Boots | British Mods 1960s Music Mens ShoesKING GEE MEN'S SANDSTONE GUSSET BOOT - SAND UK MENS 8 , AJ238 LUMBERJACK shoes gray leather men ankle boots , Black Leather Desert Army Combat Patrol Boots Tactical Cadet Military HuntingDr Martens Cabrillo Black Mens 2 eyelet Leather Boots , Mens Harley Davidson Leather Ankle Boots - Style Keating , Superhero Mens Boots | Wham Hand-crafted Comfortable Mens Shoes , New Mens Dress Shoe HARROW SOLE 2 Black Leather , Fashion Motorcycle Combat England Style Military Mens Leather Knee High Boots , Amblers Safety FS193 Safety Boot / Mens Boots (FS1719) , Sika Work Boot 50017 Flow Black Sz. 37 , Alberto Torresi A3R003 Mens Tan Leather Fashion Pull On Boot x 11 (R2B)Volcom Shelterlen GTX Men's Winter Boots, NavyFred Perry Hawley Mens Black Suede Chukka Boots , Sika Work Boot 50017 Flow Black Sz. 36Harley-Davidson D95182 Mens Clint Black Leather Biker Boot Wide Fit x12 R99 , Authentic Asics Lethal Speed RS Mens Football Shoes (9001)Fred Perry Byron Mid Mens Carbon Blue Suede Chukka BootsSika Work Boot 50017 Flow Black Sz. 45Sika Work Boot 50017 Flow Black Sz. 47 ,
    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb ->Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb -
    J.CREW LEATHER KNEE BOOTS SIZE 8,5M BLACK F4980Fashion Ladies Platform patent Leather Over the high Boots High Heels Zipper HotCONVERSE CHAUSSURE PLATFORM HI CVS - BLKWHT - 41 (888755504321) , Nina Armando Elvy – Nude Loafers Flats , New L'AMOUR DES PIEDS Women's Dieppe Textured Flat Shoes Sz 8.5M , Womens MUNRO AMERICAN black fabric Mary Jane flats sz. 9 N NEW! , SALE--FINN COMFORT 7 - 7 1/2 US (38 EU), womens STANFORD, S-W-10Aravon Women's Leath - WSM06 BK W 090Womens Easy Street Golden Black Flats 7.5 M , Handmade Pearl White Pink Rose Wedding Ball Club Shoe High Heels Party L , 8100 Melrose Black Suede Wedge Heel Slide , RON WHITE Signature 205277 red patent leather peep toe pumps sz. 35 NEW!Men's/Women's SoftWalk Women's Murietta Mule Good world reputation Attractive fashion Selling new products , GRANDCO Black Yellow Blue Pink Silver Beaded Slip On Flip Flop Sandal Sz 8 B4146SKECHERS Work Relaxed Fit Shoes Men’s, Size 13, Brown, Eur 45 ....S9SKECHERS Go Walk Air Cooled GOGA MAT Men’s WALKING shoes Size 9 Black S1DVS Rico CT Black Canvas Cadence Print Size 14 BMX DC Skate Shoes Deadstock , Nike Men’s Sneakers Free RN Commuter Shoes Night Maroon Ember Glow 831510600Skechers Men's On-The-Go Glide-Premio Boat Shoe - Choose SZ/Color , Nike Zoom Kobe IV 4 Xmas Christmas ID sz 11 White Yellow Purple Chaos OG LowVINTAGE ADAMS 1984 BLUE LEATHER DISTRESSED WESTERN COWBOY BOOTS SIZE 9-9.5 D , TONY LAMA CUSTOM USA BROWN CAIMAN LEATHER ENGINEER TRAIL BOSS BOOTS 10.5-11DHush Puppies Men's Shepsky Plain Toe Oxford Dark Brown Full Grain Leather , Stacy Adams Men's Ballard Plain Toe Oxford Shoes Ink Blue 25187-403 , Sweeney London Behren Double Monk Strap Black Leather Dress Shoes US Mens 12 M , New Nike Air Ivo Prm Womens Running Sport Shoe SneakersPuma Fierce Core Kylie Jenner Black Women's Size 10$450 Genuine & Iconic Tod's Suede Booties, black 37.5 M. All leather insideSam Edelman Women's Flynt Ballet Flat - Choose SZ/color , Women's Platform Wedge Ankle Boots Black Genuine Leather Round ToePunk Creepers ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb -

    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.

    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb -

    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
    Lumberjack BDT bagisrecor-10616 Shoes Lumberjack Men Ankle boots Grey 87628 BDT ORIGINAL 589f3fb