Never miss an update

New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211

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
US Shoe Size (Women's): 11
Brand: Nike Color: Pink
Style: Athletic UPC: Does not apply
Never miss an update

New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211 -

    New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211
    New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211
    Nike W Air Max 1 Ultra SW QS Running Womens Running Shoes 829722-001Adidas Alphabounce J Running Sneaker Pink BB7096 Size 6Y Kids / 7.5 Womens , Puma Women's Muse Echo High Top Basketball Shoes GG8 Black Size 10 $130AUTHENTIC NIKE Air Max Thea Black/Grey/White (599409-007) Women's US 5 RunningNIKE WOMENS AIR HUARACHE RUN SUEDE SZ 7.5 COBBLESTONE GREY MUSHROOM 918411 001WMNS Nike Air Max 90 PRM Leather SZ 9 Black Dark Grey Ivory 904535-001 , KURU Carrera Womens Sz 7 Running Walking Pink Orange Shoes Sneakers - Excellent , Vince Women's Suede Cage Platform Sneakers Size 9 Cloud Retail $225 , New Balance Fresh Foam Cruz V2 Knit Women's Shoes Grey wcruz-kb2 , New Balance 840v4 Running Shoe - Women's Size 8.5D, Cyclone/Poisonberry , Women's Mizuno Wave Paradox Running/Training Shoes Tile Blue --New in Box--{AO1847-845} Womens Air Jordan 1 Retro High Summer Of Her ICE PEACH *NEW* , Nike AF1 Air Force BR one womens shoes sneakers new 833123 800 total crimson , NIKE WOMENS AIR HUARACHE RUN SUEDE SZ 6.5 COBBLESTONE GREY MUSHROOM 918411 001ASICS Gel-Craze TR 4 Womens Size: 9.5M Color: Mid Grey / White / Black SET 4Puma Women's Fierce Core Training Shoes White Silver 188977-13 , NEW VIBRAM FUROSHIKI SHOES WRAP BEET RED WOMENS 37-42 FREE SHIP FITNESS BAREFOOTNike Blazer Low SE Women's Sneakers Rust Pink/Rust Pink-WhiteNIKE AIR HUARACHE RUN SZ: WMNS 5.5 (634835 605) , Twisted X Boots Women's WDM0091 Driving MocNIKE Women's In-Season TR 6 Cross Training Shoe, Black/White/Stealth/Cool Gre... , Nike Zoom Fly Running Shoes Womens Sz 6.5 Black White 897821 001 NEW , NIKE Women's Jamaza Basketball Shoes Black/ White-Anthracite (882264 002) , NEW Womens NIKE Flex 2014 RN 642767 009 Grey Volt Running Sneakers Shoes , VANS SK8 Hi 38 DX (Anaheim Factory) Light Blue/True White Skate WOMEN'S 9 , {BB1727} ADIDAS ORIGINALS WOMEN'S PureBOOST x ATR Mystery Red *NEW*Nike W Air Huarache Run Ultra White & Black Women Size 6 7 7.5 $115Mizuno Womens Wave Lightning Z Indoor Volleyball Shoes , New Balance Women's W860PG7, Grey/Purple, 6.5 B US
    New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211 ->New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211 -
    s.Oliver Womens 5-5-25236-21 245 Hi-Top Trainers, Grey Steel 245, 4 UK , Fly London Women PLAN717FLY Ankle Strap Pumps, Pink Rose Rose 016 , 8 EU*NEW* DANSKO MARY JANE CLOG BROWN LEATHER CHUNKY SOLE US SIZE 11.5-12 , Gentleman/Lady Propet Women's Erika Shoe,Bone,9 B US Adequate supply and timely delivery high quality leading the fashionSpring Step Women's Manila Work Shoe Black 7 W US , Nu by Neo Vidoretta Punta Espadrille - GOLDWomens TOPSHOP black shiny t-strap block heel pumps sz. 7/ 40 NEW! $120 , NEW!! Vince Camuto Beige Leather Sandals 3.5" Block Heels Size 10M US 40M EUR , 2018 Luxury Women Rhinestone Ankle Strap Cage Heels Jewel Garden Round Toe Shoes , Nw Authentic Christian Louboutin Lady Peep 150 in Suede 41,5 heelsGentlemen/Ladies Montana West Sandals Size 7 High-quality Environmentally friendly King of the crowd , Yellow Box Women's Birder Flip-Flop, Rhinestones Wedge Sandals Blk/Clear US5.5 MNEW SAS Womens Size 8.5WW Bone Twist Again Tri-Pad Comfort Leather SandalsPuma Trinomic Future Slipstream Lo Mix Mens Trainers Low Shoes 356689 02 D65 , Nike NEW AIR SB Stefan Janoski Max Sneaker WHITE SIZE 8RARE Nike Air Jordan 1 retro mid -Blazers- Formidable Foes Pack , Saucony Men's Omni 16 Running Shoe, Grey Navy, 10.5 W USVans Vault Taka Hayashi TH SK8 Skool LX Hi Nubuck Suede White Black VN0A38H2NA0Nike Air Max Plus / 97 Light Orewood Brown Rattan String AH8143 Size 8Dr.Martens Brown Leather Oxford Shoes Mens ENGLAND Size , Limited Edition White's Boots Smoke Jumper Elite Navy Horween Chromexcel 8 D , Man's/Woman's Rocky AlphaForce Oxford Shoe economic Excellent performance Known for its beautiful quality , CLARKS Men's Marus Step Slip-on Loafer - Choose SZ/Color , AUTHENTIC JIMMY CHOO MENS BOAT SHOES NAVY BLUE GRADE B USED - HPWOMEN'S SHOES SNEAKERS ADIDAS ORIGINALS GAZELLE [BY9035]Brooks Launch 4 Patriot Blue Radiance Pink Women Running Shoes Sneaker 120234 1B , New Balance Women's WX401V2 Training Shoe White/Purple 7 B US , Asolo MEGATON A40011 Women's Azure/Graphite Polyester Suede Vibram Hiking Boots , Nike Air Huarache Run Ultra BR Womens 833147-801 Arctic Orange Shoes Size 11 , New Sperry STS82461 Seaport Daley Tan Brown Women's Chelsea Boots 7.5 US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211 -

    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 Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211 -

    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 Women's Nike Flyknit Lunar 1 29572 Club Pink Electric mogochinese-29569 631 Green Size 11 554888 631 082e211
    Athletic Shoes