Never miss an update

New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e

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
US Shoe Size (Men's): 12.5 Style: Weightlifting
Color: Dark Stucco UPC: 823233379190
Never miss an update

New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e -

    New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e
    New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e
    NEW! Adidas Jeremy Scott Seatbelt Bones, Size 11, RARE! , DIESEL S-NENTISH ZIP ROUND BLUE NIGHTS HARBOR BLACK SNEAKERS US 10 , Nike Jordan Flyknit Elevation 23 Men Basketball Shoes Sneakers Pick 1Nike Air Max 98 WOLF DARK GREY CRIMSON RED ORANGE 640744-006 sz 12 , Packer x Reebok Question Mid PRACTICE Iverson , Nike Kyrie 1 BHM White Dark Grey Black History Month 718820-100 Sz 11MEN'S SHOES SNEAKERS ADIDAS ORIGINALS EQUIPMENT CUSHION ADV [BB7179]NIKE AIR FORCE 1 07 LHM "LATINO HERITAGE MONTH" BLACK-BLACK SZ 13 [AH7738-001] , Under Armour Lightning 2 Black White Men Running Shoes Sneakers 3000013-001Brand New Jordan Retro 10 Summit WhiteNike Alabama Crimson Tide Free Trainer V7 SG College Shoes 898049-002 Size 11.5 , Nike Kobe AD Shoes Derozan PE City of Compton Gray Multi White SZ ( 942301-900 ) , New Balance MRT580 [MRT580WB] Classic Running Black/Pink-TurquoiseNike Air Zoom Vapor X HC AA8030-010 Black/Black/Varsity Grey Men's Size 8.5Men's Travel Fox Classic Hi Top embossed Leather Casual shoes olive 916101-122Nike Air Zoom Structure 21 Shield 907324-400 Binary Blue/Grey Men size 10 , Nike Vapor Street Flyknit Medium Olive Sequoia Racer Vaporstreet AQ1763-201 , Nike x J.Crew Killshot 2 Sneakers Brand New in Box | SIZE 11 , Nike Lebron James 2 Low wht/wht men’s size 18NIKE AIR MAX 2016 N7 VIVID ORANGE-TURQUOISE-BLACK-BLUE SZ 9 [845396-844]Gentlemen/Ladies Jordan 11s Low Elegant appearance luxurious Sales online store , [bargain] Brooks Dyad Walker Mens Walking Shoe (2E) (001) | RRP $230.00 , NEW Adidas x Opening Ceremony Blue EQT Trail High Top Trainers GENUINE RRP: , NIKE AIR MAX 1 SHOES MENS ONE PREMIUM SNEAKERS - DESERT CAMO / GUM SOLE , Used Nike Air Jordan XIII 13 Retro Low Hornets White Navy Size 10 Authentic VNDSadidas Ultra Boost 4.0 Parley Legend Ink Carbon Blue Spirit Sneakers | AC7836 , air jordan 1 Retro High OG HYPER ROYAL US MENS SIZES 555088-401 , NEW BALANCE 997 MADE IN USA SZ 10 NIMBUS CLOUD GREY PEACH TEAL M997VA2 V2REEBOK QUESTION MID CELEBRATE IVERSON DS SZ 5.5 US HALL OF FAME 115 PAIRS NEW
    New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e ->New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e -
    STEVEN by Steve Madden Women's Valo Dress Pump - Choose SZ/colorGentle Souls Womens Penny Ankle Bootie- Pick SZ/Color.Charles by Charles David Women's Quincey Fashion Boot, Black/Black, 8 Medium USMunro Women's Gray Leather Side Zipper Ankle Boot 5144 Size 6WWL1137-4 Old Gringo Sozey Nuvularis Swarovski Crystal Black 8" Ankle BootsDESIGNER VINTAGE LEATHER ANKLE BOOTS TOE SHOES FLAT HEEL TAN BROWN MILITARY , Skechers BOBS from Luxe Bobs - Dazzlin Shoe - Choose SZ/ColorJUNYA WATANABE Shoes 244610 Black XS , BY722 MBT shoes gray suede women moccasinsCole Haan Womens Driving Moc Loafers Black Patent Crinkle Leather Sz 5.5B , Gentlemen/Ladies NEW SEYCHELLES HAZEL BLACK flagship store Fast delivery Clearance sale , Pour La Victoire Women's Ava Cork Pink Patent Platform PumpKendall & Kylie Women's Colt Chelsea Suede Boot Cool Saddle Suede Size 9.5 M , Man's/Woman's Dee Little Star Sandal Comfortable feeling Low price classic styleBrand New In Box Miu Miu Denim Sandal, Size 38,5 , Everybody By Bz Moda Valo Sandals - Women's Size 8.5, Sand , Reebok Size 8.5 RealFlex 4.0 Pink Training Sneakers New Womens ShoesASICS GEL-FORTITUDE 3 MEN'S TQ8B2 RUNNING SHOESMan/Woman GEL FLUX 4 NOIR GRIS BLANC Quality products product quality Elegant and solemn , Nike Air Max Vision Mens Athletic Shoes 918230 400 White/Navy NIB , Nike Rosherun, Hyper Cobal / White / Hyper Punch, Size 13 , NIKE SHOX GRAVITY VAST GREY/METALLIC GOLD SIZE MEN'S 12 [AQ8553-009] , Gentleman/Lady GEL-Nimbus 20 Men's Running Shoe Modern technology Year-end sale a wide variety of goodsNIB $99 dockers "tovar" LEATHER CASUAL/DRESS BOOTS SHOES light tan , Brooks 120194 1B 515 Mach 17 Running Womens Shoes SZ 10.5 , Brooks Levitate Black White Neutral Women Running Shoes Sneakers 120258 1B 6.5 , WMNS NIKE HYPERVENOM PHANTOM II 2 FG ID BLACK-CRIMSON SZ 9 [812221-902]NIKE AIR TRAINER HUARACHE PRM QS Size 42,5 (9US) , Authentic Burberry Hartfields Sneaker Shoes Size 38.5 $325 , JCREW $268 Chelsea Leather Ankle Boots 7 colony brown shoes winter 03002 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e -

    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 Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e -

    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 Nike Romaleos 3 Dark 29925 Stucco Metallic Silver Size Nike Size 12.5 (852933-003) ddd4f9e
    Athletic Shoes