Never miss an update

Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3

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
Style: Wedges
Never miss an update

Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3 -

    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3
    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3
    Man's/Woman's Vince Camuto Women's Niomi Platform Pump Queensland Moderate cost Don't worry when shopping , Mr/Ms NEW ESPADRILLES WOMENS ESPADRILLES Beautiful design Strong value a wide variety of goodsMen/Women Very Volatile Women's Steadfast Dress Sandal Crazy price Selected materials Fashion dynamic , Man/Woman Franco Sarto Women's Layola Pump economic Selected materials high quality product , Gentlemen/Ladies Chinese Laundry Women's Bonafied Platform Sandal Modern and elegant fashion low cost value , DADAWEN Women's Classic T-Strap Platform Mid-Heel Square Toe Oxfords Dress Shoes , Gentlemen/Ladies Aerosoles Women's Code Dress Pump Good design Environmentally friendly Seasonal hot saleGentlemen/Ladies Nine West Women's maqui Pump Complete specification Cheaper than the price Speed ​​refund , Man/Woman Andre Assous Women's Glaze Dress Pump Modern technology special function Breathable shoes , Jessica Simpson Women's Calie Nude Patent Pump , Man's/Woman's escarpins sinela cuir vernis aubergine 36,5 Customer first Quality First professional designMr/Ms Greatonu Womens Slingback Dress Pump Big clearance sale Skilled manufacturing Modern mode , Azura by Spring Step Women's Zazzou Dress PumpChinese Laundry Women's Touch Down Platform PumpRiverberry Women's Nora Pointed Toe, Slip On D'Orsay Pump Heels , Men's/Women's CLARKS Women's Tarah brae Dress Pump High-quality First grade in its class Speed ​​refund , Man/Woman Dolce Vita Women's Lorna Heeled Sandal Fine processing Win the praise of customers Breathable shoes , Carlos by Carlos Santana Women's Corelle Wedge SandalNine West Women's Dempsey Fabic Heeled SandalGentlemen/Ladies Dyeables Women's Heidi Manmade Slingback Sandal Durable service comfortability Elegant and robust menu , Gentlemen/Ladies Lucky Brand Women's Lk-Udom Pump Clearance price Price reduction Excellent function , CL by Chinese Laundry Women's Estelle D'Orsay Pump - Choose SZ/ColorNina Womens merel Open Toe Ankle Strap Classic Pumps , Man/Woman Sbicca Women's Gallatin Wedge Sandal service Latest styles Seasonal hot sale , Ruby Shoo Rosalind Mary Janes Wome'ns Avocado Floral Buckle Strap High Heels NewMan's/Woman's Chinese Laundry Women's obvi Pump feature Latest styles Preferred boutique , Gentlemen/Ladies Steve Madden Women's Tawnie Dress Sandal High grade Elegant style Recommended today , Man's/Woman's Dolce Vita Women's Haylie Dress Sandal Quality queen Moderate cost Elegant and robust menu , Man/Woman Nine West Women's Shoreside Leather Pump Strong heat and wear resistance Clearance retail price
    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3 ->Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3 -
    LoQ Lazaro Boots Burdeos Patent Leather (Choose Size) , Splendid Sebastian High Top Zipper Lined Fashion Sneakers, Teal, 6.5 US , Women sandals leather model FARIZ Aus 2 to 10.5 , New Cabello Comfort 3502 Womens Leather Sandals Made In Portugal , Gentleman/Lady Vivienne Westwood Anglomania + Melissa Heels Modern technology Elegant style Outstanding style , Dr Martens 6-Hole lahava Wine 21178618 Original Doc , Ivanka Trump- Kiffie Heels, Women's Size 7.5 M, BlackAnne Klein Women's Cadwyn Peeptoe Wedge Pump$135 MISS SIXTY JORDANA Black Oiled Suede Designer Stacked Heel Sandal 7STEPHANE KELIAN - Escarpins talons 3 cm tout cuir noir 3 = 36 TRES BON ETAT , JCrew $248 Elsie Suede Pumps Contrast Trim Sz 7 India Blue F4868 AVLFendi Zoccolo Cuoio Lucido + Z ucca Jacmoro + Tabacco Size 8 New in BoxCC35 Calister Ankle Strap Wedge Sandals, Black, 6.5 US[SEAM TREK-13254] CLARKS SEAM TREK MENS SHOES CLARKSTAN LEATHERAdidas Originals Tubular Runner Mens Classic Casual Retro Running Shoes Black , SALE NIKE LEBRON XIV 14 LOW MIDNIGHT NAVY METALLIC GOLD USA BLUE 878636 400 SZ10 , Man/Woman NIKE FREE RUN FLYKNIT BLACK 880843-001 online sale Let our goods go to the world Cheap order , Nike Hyperrev Basketball Men's Shoes Size 11.5 , Skechers Performance Men's Go Golf Drive 2 LX Golf ShoeASICS GEL FOUNDATION (4E) T5H2N 7339 CARBON ELECTRIC BLUE MEN SHOES SIZE 8.5Adidas Crazy Series Basketball Shoes Collection Lot of 6 New Size US 9New Balance x Concepts 997 NYC PackFRYE Men's Phillip Wingtip Boot - Choose SZ/ColorNEW MEN CROCS KINSALE 2-EYESHOE KHAKI STUCCO STANDARD FIT ORIGINAL 204223-26P , New Mens Sperry's Top Sider Gold Cup Size 12M Navy/White Leather , New Men's Real Leather Casual Formal shoes Slip On Loafers C1121 , Skechers Ultra Flex Up Close Womens Slip On Sneakers , NEW~Adidas ADIZERO RUSH Running Shoe gym marathon Trainer response~Women SZ 10.5 , Asics Gel-Kayano 24 Womens T799N-4840 Regatta Blue Purple Running Shoes Size 9Nike Flyknit Racer Women's Light Violet/Dark Raisin/Plum Fog/White 26628500 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3 -

    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.

    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3 -

    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
    Mr/Ms ESPADRILLES NEW LAURA BIAGIOTTI LAURA WOMENS 28101 ESPADRILLES Fashion pattern stable quality Brand feast cf59bb3