Never miss an update

NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c

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: Fashion Sneakers
UK Shoe Size (Women's): UK 3 Product Line: AIR JORDAN
EUR Shoe Size (Women's): EUR 36 US Shoe Size (Women's): US 5.5
Color: White Width: Medium (B, M)
Brand: Nike UPC: 887230832089
Never miss an update

NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c -

    NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c
    NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c
    ZADIG & VOLTAIRE STELLATO Gold Leather Designer Pumps Heels 6.0 MBalance Women's WW1400v1 Walking Shoe, Grey, 10 D USWMNS NIKE AIR MAX 90 PREMIUM PALM GREEN-SAIL SZ 9 CROC PRINT!! [443817-301]Patagonia Women's Better Sweater Jacket - Galah Green (GNIKE Air max PRESTO Black Golld RUNNING Shoes Men's 7Y UK6 40 25cm Women's 8.5 W , Brooks Glycerin 15 Desiree Linden Neutral Cushion Black Women Running 120247 1B , Nike Wmns Air Jordan 1 Retro Low NS Royal Tint/Phantom Casual Shoes AO1935-400 , FILA 17FW DISRUPTOR II SUEDE MODEL GREY & PINK UNISEX SHOES US SZ 4-11New Balance W860BK9 D Wide Black Silver Women Running Shoes Sneakers W860BK9D , Vans X Van Gogh Sk8-Hi Sneaker - Size Women's 6.5 / Men's 5Adidas Originals Women's W Falcon FTE Glow Shock Pink Grey White Walking CM8537New Balance WFCIMGP Women's Fuelcell Impulse Cyclone/Dragonfly Running ShoesAdidas Women's Terrex Agravic Speed Trail Running Sneakers Shoes , Merrell Women's Barrado Black Leather Sneaker 9.5 MSpira Classic Walker Walking Extra Wide Women's Shoes , Asics women's gel kayano 24 running shoes black phantom white size 7 usNike Air Max Thea Lx Womens Running Trainers 881203 Sneakers Shoes 600 , Women's Salomon X Ultra Mid 2 GTX Outdoor Hiking Detroit/Autobahn/ Pink Size 9.5 , Nikelab Womens Free RN Motion Flyknit 2017 Running Trainers 883292 Shoes 201 , Nike Wmns SF Air Force 1 Mid Women New Shoes Womens Light Pumice AA3966-006 , NEW KEEN Women's Terradora Mid Waterproof hiking boot Stormy Weather Size 8 , Nike Wmns Air Jordan 1 Retro Low NS No Swoosh Gym Red White Women AJ1 AH7232-623Women's New Balance 1400 Made In USA Toast Auburn Brown Tan Suede SZ ( W1400CT ) , Fabulicious Womens Chic 08DM Rhinestone Sandal Clear PVC/Silver Multi RhinestoneNew Balance W860RP9 Women's 860v9 Earth Red/Burgundy Training Running Shoes , Nike Air Max Thea Premium Casual Women's Shoes Size , WMNS NIKE AIR MAX 1 N7 WHITE-BLUE-COURT PURPLE SZ 6 RARE!! [AO2321-100]Asics Gel-Nimbus 14 Women's Running Shoes Purple/Lime/Charcoal US 6 , Puma Basket Platform Metallic Black Rose Gold Leather Women Shoes 366169-02
    NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c ->NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c -
    ECCO Women's Bella Slip On Loafer, - Choose SZ/color , Y-3 Men's Slippers Sandals Rubber Adilette White B43 Size UK7 BRAND NEW , Hush Puppies Women's Michele Madrine Flat - Choose SZ/Color , Fashion Women Summer Sandals Block Platform High Heels Lady Pearl Peep Toe Shoes , Rockport Melora Gore Captoe Dress Pumps 788, Tan/Black, 7 US / 37.5 EU , A2 by Aerosoles Women's Architect Slip-OnSkechers Women's Kiss Secret Wedge Pump - Choose SZ/Color , Bella Vita Women's Gala II Pump Gold Embossed Velvet Size 11 MCorso Como 9.5 Black Joss Patent Leather Dress Pumps , Women's Salvatore Ferragamo 'Orinna' Pearlescent Leather Classic Heels, Size 8.5Fendi Womens Pumps Size 38.5 8.5 Blue Black Peep Toe Platform Stiletto , New Dolce and Gabbana Size 7.5 Tan Calf Hair Closed Toe Slingbacks , TOD'S Black Leather Hand Stitched Platform Mule Heels Sz10 OP $695 Made In Italy , Taryn Rose Women's Gabriela Suede Pointed Toe Pumps Size 7 Taupe Retail $450Pelle Moda Womens Sandals Size 5.5M Latte Beige Suede April Ankle Strap New $165 , NIKE MENS DUAL FUSION RUN 2 UK SIZE 7 WHITE RUNNING TRAINERS SHOES COMFORT , Nike 2015 Men Air Max Audacity Basketball Shoes 704920-006 Cool Grey 9 , Nike Air Zoom Mariah Flyknit Racer Size 11 US Black Men's Running Shoes , Nike Zoom Hypercross TR AMP X DSM Midnight Navy White Sz 8.5 684635-410 DoverClarks Mens Original Desert Boot Beeswax Leather Medium (D, M) , air jordan 11 win like 96 size 10Nike Air Jordan 3 III Retro NRG Free Throw Line White Cement '88 DS NYC MEN’s 7 , Gianvito Rossi Men's Shoes 708648 Black 40Sperry Top-Sider ASV STS10768 Gold Kennebunk SneakersPuma Basket Classic Low Men Women Shoes Sneakers Trainers Pick 1Nike Women's Free Rn 2017 Ankle-High Running ShoeNIB WOMENS BROOKS ADRENALINE GTS 18 RUNNING SHOES TRAINERS BLACK ~ 10 D WideJeffrey Campbell Perabo Light Grey Silver Capped Toe Flared Heel Ankle Bootie 8Women's Knee High Wedge High Heel Boots Knight Pointed Toe Mental Decor Formal , Gianni Bini Womens Charcoal Roulette Boots Shoe Size 8.5 M
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIKE JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c -

    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 JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c -

    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 JESTER W mogochinese-29902 AIR JORDAN 1 AJ1 JESTER [AO1265 XX OFF WHITE SZ 5.5 WOMENS [AO1265 100] 019193c
    Athletic Shoes