Never miss an update

Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3

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: Nike
Width: Medium (D, M) Style: Basketball Shoes
Material: Nubuck / Patent Leather US Shoe Size (Men's): 8.5
Color: Multi-Color UPC: 888408011640
Never miss an update

Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3 -

    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3
    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3
    Nike Lebron Soldier XI SFG Men Size Basketball Shoes Silver Red 897646 007Nike Air Zoom Mariah Flyknit Racer Sequoia/Neutral Olive Men's 918264 301 Size 9Under Armour Shoes Mens Charged Legend Training Cross-Trainer Shoe Black/Gray 12 , Adidas SL Loop Chrometech Q16764 Retro Green Sneakers Running Shoes Men's 9.5New Merrell J12505 Agility Peak Flex 2 E-Mesh Blue Men's Hiking Shoes 9 US , New Balance 580 Rev Lite White Blue Sneakers Men's Size 7Nike Men's 11.5 Free Flyknit Mercurial Superfly Game Royal 805554-400 Shoes NEW , New Merrell J12535 Bare Access Flex Knit Black Men's Hiking Shoes 12 US , Gentleman/Lady SUPERSTAR BLANC NOIR Wear resistant High-quality materials high quality product , Nike Cortez Basic Leather OG "Forrest Gump", Men's Size 10.5, White, 882254-164Nike Air Max Infuriate 2 Mid PRM EP White Silver Camo Basketball Shoe AO6550-100NEW* HOKA ONE ONE M INFINITE MEN'S RUNNING SHOES GREY CITRUS GCTR IN BOX 1009648 , Mens NIKE AIR MAX 90 ULTRA 2.0 FLYKNIT Bright Crimson Trainers 875943 600 , adidas Men's BTB Low NBA Lakers Basketball Shoe,Black/Regal Purple,10 M , SALE ADIDAS NMD R2 _R2 PK FUTURE HAVEST GREY ORANGE WHITE BY3014 NEW BOOST , Man's/Woman's Mt. Emey Men's 9701-3V Elegant shape Modern design fine , Asics Gel Exalt 2 Mens Running Shoes (D) (9799) + FREE AUS DELIVERY , Fragment X Nike Tennis Classic AC SP Black White Men Casual Shoes 693505-001 , Nike Mercurial Veloce II CR FG Soccer Cleats.. (Cristiano Ronaldo).. SIZE 10.5 , Nike STEFAN JANOSKI MAX L Blue Graphite Metallic 685299-406 (495) Men's Shoes , Man's/Woman's Nike Berwuda Mid Running Men's Shoes High quality and cheap discount classic style , Mens Jordan Trainer 2 Flyknit 921210-101 Black/Black Brand New Size 11Men's Under Armour Curry 2 Basketball Shoes General Red Gold SZ 11.5 1259007-601SALE NIKE FLYKNIT TRAINER CIRRUS BLUE BLACK WHITE SZ 13 AH8396 400 YE RACER , NIke HyperDunk 2015 749645-405 MignightNavyBlueWhite Sz 11.5Mens Nike Zoom All Out Low Dark Atomic Teal Trainers 878670 303HOKA ONE ONE VANQUISH 3 MEDIEVAL BLUE WHITE RUNNING SPORTS SHOES SIZE 9.5 MENS , NIKE SUPREME DUNK FLYKNIT 917746 600 UNIVERSITY RED/WHITE-WOLF GREY MENS SIZE 9 , Globe Tilt Mens Wheat Leather & Synthetic Trainers ,
    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3 ->Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3 -
    Frye Women's Black X Stitch Tall Boot 6419 Size 11BDelman D-buena-b Womens D-Buena-B Riding Boot- Choose SZ/Color.Auth Christian Louboutin OTABOO 70 Calf Short Boots Studs Black 13150681000 UP , Boulet Puma Madera West Turqueza Inlay Cowgirl Boot - Snip Toe - 4622Frye Women's Danica Lug Combat Booties - Round Toe Dark Green 8 M , Mens Nike Air Max 95 TT Premium RARE - AJ4077002 - Black White Red Brown TrainChinese Laundry Women's Jump to It Mule, Rose Gold Leather, 9 M US , $545 VALENTINO GARAVANI SZ 37.5 US 7.5 ROCKSTUD LEATHER BALLERINA FLATS , Stuart Weitzman Size 7N Tortoise Shell Patent Leather d'Orsay Bow Peep Toe PumpCELINE Sandals in Blue Denim Leather Insole Small  Heel  size  38 or 7.5 US , BCBGeneration Womens Red High Heels Sandals Size 7 M 37 1051L'Artiste By Spring Step Women's Axia Display Model Sandal Teal Multi US 7Mephisto Women's Coralie Black Bucksoft Size 6 M , Nike Vapor Speed Turf Trainer Football Shoes White Lightning 847100-010 Sz 13Nike Prime Hype DF Basketball Mens Shoes 683705 , LaCoste Shoes Andover Canvas Lo White Sneakers Size 9Converse Jack Purcell Hi Top Signature Dolphin/White 155585C Sz 6 / Wmns 7.5$159 -NWOB- ASICS GEL LYTE EVO NT FluidRide NEW YORK City MARATHON SHOES Mens 9ADIDAS SUPERSTAR 80’s city pack: London Size 12Adidas Originals EQT Support 93/17 Boost Men’s size 10.5 NEW Primeknit CQ2396Puma Rihanna Fenty Trainer Hi Sneakers Ivory Shoes Size 12 , Nike Air Max Big Swoosh Charles Barkley Gary Payton White/Black Shoes Size 10.5HERMES Ankle Boots Size 42 EUR or 9 D US Men Casual Formal Stylish LuxuryJessica Simpson Womens Yesha Ankle Bootie- Pick SZ/Color. , $199 JOE'S JEANS CAMEL AVERY LEATHER BOOTS SZ 10M , Womens Pointed Velvet High Heels Prom Shoes embroidery Floral Zipper Ankle BootsThe North Face Brown Winter Boots Booties, 8Panhandle Slim Gray Lizard / Black Leather Cowboy Boots 8.5 D / Womens 10 M NewWomen Chic Punk Pleated Clubwear Super High Heels Over Knee Thigh Boots Peep Toe , Baffin Women's Meltwater Rain Boot Black 8 M US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3 -

    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.

    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3 -

    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
    Nike Jordan Nike BCT Mid 3, Size UNC, White UNC,/ Baby Blue, Size 8.5 ba2fab3
    Athletic Shoes