Never miss an update

Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6

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: FRYE
Never miss an update

Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6 -

    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6
    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6
    Gentlemen/Ladies ECCO Women's Shape 35 Boot Ankle Reasonable price Online export store Different stylesLane Western Boots Womens Wilde Ride Leather Harness Tan LB0224FMen/Women Lucky Brand Women's LK-Khlonn Slouch Boot Elegant appearance discount businessMan's/Woman's Corral Boots Womens C3193 Cheap Ranked first in its class Popular tide shoes , MuckBoots Woody Sport Cool Hunting Boot - Choose SZ/ColorLane Boots Women's Rock On Western Boot , El Naturalista Women's N158 Yggdrasil Ankle Bootie - Choose SZ/ColorMen's/Women's Steve Madden Women's Alyy Engineer Boot Innovative design Modern design Don't worry when shoppingCORRAL Women's Bone Floral Embroidered Cowgirl Boot Snip Toe - G1086Men/Women FRYE Women's Jenny Plate Short-SFG Boot service Online export store British temperamentGameday Boots Womens Western Louisiana State Tigers LSU-L326-1FRYE Women's Melissa Tab Tall Riding Boot , Gentleman/Lady Aquatalia Womens Wande Aesthetic appearance Let our products go to the world German Outlets , Sesto Meucci Women's Boomer Boot,Cuoio Leather Brown 1.5" Heel Knee High,6 M US , Men's/Women's Roper Women's Sierra Round Western Boot Easy to clean surface New design cheaper , Man's/Woman's Taryn Rose Women's Kalo Boot Packaging diversity high quality Pick up at the boutique , Gentlemen/Ladies Aquatalia Womens Florine service King of quantity uniqueNine West Women's Knowone Leather Knee High BootMan/Woman Dan Post Women's Trish Western Boot Strong heat and wear resistance Fast delivery a lot of varietiesMan's/Woman's ECCO Women's Noyce Tall Snow Boot Easy to use Upper material Comfortable and naturalCORRAL Women's Studded Strap Ankle Boot Round Toe - C2993Aquatalia by Marvin K. Women's Calista Suede Ankle BootMan/Woman FRYE Women's Carson Harness Clearance price Excellent performance Shopping promotion , Helly Hansen Women's Skuld 4 Cold Weather Boot, Black/Ebony, 8.5 M US , Easy Spirit Nadette Women Round Toe Leather Brown Knee High BootGentlemen/Ladies FRYE Women's Melissa Harness InSide-Zip Boot Good design Settlement Price comfortable , Lane Boots Women's Lovesick Stud Western Boot , Yippee Kay Yay by Old Gringo Women's America Eagle Western Boot , Gentleman/Lady Ariat Women's Crossfire Caliente Western Boot Louis, elaborate Used in durability Export
    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6 ->Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6 -
    Nike Air Max 97 OG QS Mens Running Trainers 884421 001 Sneakers Shoes , Vionic Kea Orthotic Slip-on Women's Sneaker - Berry , Gentleman/Lady ANTEPRIMA Shoes 327180 Black 23.5cm Elegant and sturdy set meal Optimal price comfortableCrocs Women's Lina Luxe Ballet Flat - Choose SZ/ColorNIB Dr. Comfort Sunshine Women's Light Brown Leather diabetes shoes Size 8.5 Mwomen open toes knee high sandals boots hidden mid heel breathable shoes hot newMen/Women TEEZE-47W Packaging diversity real Fair price , New Tahari Womens Low/Mid heel Brown Patent Leather Style: Leslie, Size 10 , Splendid Rosita III Genuine Calf Hair Loafer Pump Women's Size 7.5 Leopard Print , GIUSEPPE ZANOTTI SHOES sandal wedges suede slides 41NIB Stuart Weitzman Koko Open Toe Heel Bootie Suede Camel Size 9.5 $575Albano Women's Italian Suede Knee High Boots 464 BlackWoman's PRADA combat boots Black leather biker 40/10Fashion Womens Ankle Strappy Buckle High Woven Wedge Heels Leather Sandals ShoesAndacco Maze Womens Comfortable Leather Slide Sandals Made In BrazilAdrienne Vittadini Women's Goldie Slip-On SneakerSperry Top-Sider Women's Crest Vibe Crepe Chambray Sneaker, Black , Air Jordan XX3 23 Motor Sports Sz 10 318376-011Men's Adidas NMD R1 Sesame - Size 9½ , Under Armour 1248416-012 Micro G Charge Volt Black Basketball Shoes Mens Size 14Mr/Ms Clarks Mens Ash Gore-Tex174 Boot,BLACK,13M Elegant shape Win highly appreciated Full range of specificationsNEW COLE HAAN BOOTHBAY SLIP ON LOAFER SHOES BARLEY NUBUCK SIZE 10.5 M , mens black coffee leather crocodile pattern business carved dress shoes plus szNew Stacy Adams Men's Bingham Cap Toe Oxford Dress Shoe Cognac Leather 25007-221 , ASICS GEL-NOOSA TRI 9 T458N Running Shoes Multi Color Womens 7.5 M Swim Bike RunICEBUG WOMEN'S ANIMA3 RB9X RUNNING SHOE, PEONY/POISON, US SIZE 6, MEDIUM, NEWNike Women's Size 8.5 Air Max Thea Ultra FK Flyknit Running Shoes 881175 006 NEWMr/Ms Dansko Women's Hayes Sneaker Navy Suede/Mesh Beautiful design Year-end sale International big name , Rare Nike Air Max 95 QS Doré Gold 39 814914 700 Lx animal safari 1 parra 97 98 8 , Firts Love By Penny Loves Kenny Royal Blue Pumps Size 7 new
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6 -

    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.

    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6 -

    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
    Gentlemen/Ladies NEW 25397 durable FRYE WOMENS VERONICA SHORT Attractive and FRYE durable Latest styles Exquisite workmanship 68a25b6