Never miss an update

New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Brand: Nike
Color: Black White Style: Cleats
Model: Vapor Pro Nubby US Shoe Size (Men's): 18
Retail Price: $105.00 Width: Medium (D, M)
Model #: 527878-011 UPC: Does Not Apply
Never miss an update

New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520 -

    New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520
    New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520
    NIKE LeBron X1 11 South Beach Turquoise Mint Men’s Shoes 616175-330 Size: 11 , Nike Air Max EXT Laser Blue Men's 12.5 554967-100 EUCNike Mens Size 10 Zoom Live Basketball Shoes Sneaker Grey 852421-010 New VelcroVans Court Icon Salton Canvas Apricot Men's Classic Skate Shoes Size 11 , Nike Zoom Kobe VII 7 SUPREME CHRISTMAS CHEETAH Size 5Y2017 KSWISS GEN-K ICON KNIT BLACK WHITE BROWN 05578-003-M 8.5 , Adidas Matchcourt x Helas White Green Orange Sz 10 BY4535NEW BALANCE 580 ELITE EDITION REVLITE BROWN TAN BLACK MRT580KB SZ 7.5NIKE DUALTONE RACER 918227-001 BLACK WHITE PALE GREY DS SIZE: 9 , Nike Men's Shoes Size 12 Zoom Hyperquickness 2015 Basketball 749882 002 Shoes , New Mens 18 NIKE Hyperdunk TB Red White High Top Basketball Shoes$140 524882-601 , VANS New Authentic Mono Print Vault Size USA 9 , Nike Vapor Speed Turf LAX Football Trainer Shoes Black White SZ 9 [833408-017] , Reebok Mens Hexaffect Fire VTR MTM Running Shoe Size 9.5Nike Trainer 1.3 Boise State Shoes - Used Size 14 - Rare Players Only PromoMen's/Women's AIR JORDAN BOBCAT 10 Economical and practical Good market Speed ​​refundNike MercurialX Proximo II 831976 085 Grape Indoor Soccer Shoes 10.5 (28.5 CM) , Skechers GOGA MAX Size 12 Black Leather Sneakers New Mens Shoes , Men's Head Revolt Pro Preowned Tennis Shoe Size 8.5REEBOK ZPUMP RISE AQ9506 SHARK MEN SIZE 8.5 SAND STONE BASKETBALL NEW , Nike KD 6 VI Liger Size 12 Electric Green/Orange Zoom Men’s Basketball 599424!! , NIKE Air Max 95 Z Zipper Gold Size 11 OG US rare , Nike Lebron Soldier XI SFG 11 Light Bone Stucco Sz 12 897646-005Nike Zoom Mercurial XI FK FC Men's Size 9.5 Black Hasta Seaweed 852616-001 , DC COURT GRAFFIK LOW SKATE SNEAKERS MEN SHOES GREY/WHITE/GUM 300529 SIZE 9 NEW , Vans SK8 Hi 38 Reissue Moto Leather Black/Blanc de Blanc Men's Shoes Size 8.5 , NIKE MAYFLY WOVEN 833132-200 MEDIUM OLIVE LIGHT BONE BLACK DS SIZE: 12MEN'S SIZE 8.5 NIKE AIR MAX FURY RUNNING SHOES / GYM SNEAKERS NWB AA5739 100Nike Benassi Slide Lux - Black / White Size 11 New ,
    New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520 ->New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520 -
    FAST SHIP! EUC! SZ 10 FREEBIRD BY STEVEN SAMMI BLACK ANKLE BOOTS , Caterpillar Women's Olive Boot Wine 8 M US , Camouflage Mens Boots | Red Digital Camo Military Print Mens Shoes , Diesel Superyor Ironikk Shoes Trainers Size 38H By Hudson Black Distressed Leather Ankti Ankle Chelsea Shoes Boots 4 to 8 NewNEW NAOT 37 GRAY SUEDE AND PATENT LEATHER MARY JANES WOMEN SIZE 6 M , Prada New Broque Espadrille Silver Womens Shoes Size 6 M Flats MSRP $895.99 , Womens Leather Floral Cross Strap Sexy High Heels Stilettos Sandals Party Shoes , Belle~Vita Multi Colored Leather Pump Size 10Stuart Weitzman Marymid Pump Heels Black Kid Leather Size 7.5 MAnne Klein Akodile Sz. 10 M Women Black Gold 25006922-9RM Heel Brand New In BoxTalons hauts model 99912 Zoki - Matter - ShoesROSEGOLD Leo Wedge Espadrilles BLACK sand Peep toe Sandal NEW Ankle strap Canvas , Free People Gladiator Sandals. NWT. Size 7 Retail- $98Nike Air Max Modern Flyknit Running Shoes Deep Burgundy Red Sz 10 876066 600 , Adidas EQT Support Ultra, Men's Size 12 D, Beige BB1239 NEW2017 Nike Air Lebron 14 XIV Low SZ 9.5 Navy Gold Woven James Cavs 878636-400 , NIKE SB Eric Koston 2 Max Skateboarding Shoes sz 10 Crimson Red Black Gray , NIKE LEBRON XIV BASKETBALL SHOE MEN SIZE 9.5 , JORDAN RETRO 5 LOW UNIVERSITY BLUE 2006 RELEASE WOMENS 9 / MENS 7.5 314337-141AIR JORDAN 7 RETRO "BORDEAUX 2015" 304775-034 Size 11Tod's Grey Suede Runners Size 7.5 BNIBMen's TO BOOT NEW YORK 'Bruckner' Brown Leather Wingtip Boots Size US 8.5 - D , Nike Air Zoom Vomero 11 Women's Running Shoe 818100 601 Size 12Women Adidas DB1482 Element Race Running shoes white SneakersNEW Womens DUNHAM 910 BL Light Blue Vibram Outdoor Trail Sneakers Shoes , Nike Wmns Air Max Plus Slip SP Midnight Navy Silver 940382-400 Women's Size 10Asics Gel-Quantum 180 2 Womens T6G7N-9601 Grey Silver Running Shoes Size 5.5Women's DONALD J PLINER Beto Tall Suede Riding Boots Black Size 7 MVince Camuto New Womens Brass Black Suede Leather Ankle Boots 5.5 M Shoes NWOB
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520 -

    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 Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520 -

    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 Mens 18 New NIKE mogochinese-26928 Vapor Pro White 3/4 Nubby Black White Cleats Shoes $105 527878-011 6cf6520
    Athletic Shoes