Never miss an update

NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e

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
Color: Multi-Color
Style: Athletic Sneakers Brand: Nike
US Shoe Size (Men's): 12.5 UPC: Does not apply
Never miss an update

NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e -

    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e
    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e
    NEW Men's Nike Zoom Fly Team Size 17 White/University Red [652828 161]ADIDAS Adizero Green Navy Running Sprinter Track Cleats Shoes AF5647 Men's 11.5 , Nike Air Sharkley Remix low RARE great condition Size 11NIKE DUALTONE RACER PREM SZ 14 BLACK WHITE PALE GREY RUNNING SHOE 924448 001Vans Sk8 Hi Mens Size 5.5 American USA 4th Of July Americana Dress Blues OTWNIKE SB ZOOM Paul Rodriquez 4 MENS DARK ARMY/BLACK 386613 300 RARE! NEW IN BOX!Nike High Jump Elite Spikes Shoes Men's 9.5 Women's 11 Rio Olympics Volt 806561ADIDAS TUBULAR DOOM PK SZ 8.5 CORE BLACK VINTAGE WHITE PRIMEKNIT S80096Womens NEW BALANCE 373 Green Leather Trainers WL373RGR , DC PURE SE LOW SKATEBOARD SNEAKERS MEN SHOES BLACK/GRAY ADBS300258 SIZE 6 NEW , DS Adidas Superstar Vulc ADV Size 8/Size 11 White/Black D68718 , Saucony Ride 10 Running Shoes Gray, Men's US 11.5 (E2,6)Gentlemen/Ladies nike air trainer v cruz Good world reputation Let our products go to the world Excellent stretching , Mens ADIDAS STAN SMITH ADICOLOR Dark Mint Synthetic Trainers S80250BRAND NEW Nike Flex Control II 2 White Grey Men Cross Training Shoes Sneakers , ADIDAS CrazyQuick 2.0 Mid TD Royal Blue Red White Football Cleats NEW Mens Sz 13 , 2006 Nike HT2K6 Shoes Air Trainer Huarache Yellow Gray Black 313373 7.5 , Nike Match Supreme TXT, Gym Red / White, 631657 610, Size 10.5 , Nike STEFAN JANOSKI MAX L Cool Grey Black White 685299-011 Men's Shoes Size 9Nike Dunk Low Premium SB Varsity Blue Pink Ice Sz 9.5 313170-462MEN'S FILA VULC 13 MID PLUS Black basketball CLASSIC HIGH TOP SNEAKERS retro , Adidas adizero prime finesse sprint track spikes/cleats bb4097 Size 12Converse Chuck Taylor All Star Men's Gray Ox Sneakers 118450F , Polo Ralph Lauren Faxon Low black red cotton mens shoes boat new size 13 , Vans CHIMA FERGUSON PRO Static Black Casual Skate Discounted (505) Men's Shoes , Nike Force Savage Elite TD 12 Football Cleats Black White 857063 011 Untouchable , WOMENS NIKE RIFT WRAP 853541-100 WHITE DS SIZE: 9Adidas Men’s B39507 Pro Model BT Navy/Navy/White Shell Toe Shoes Size 11.5 , $150 Men's Nike Train Ultrafast Flyknit Size 11 Plum NEW Style 843694 500 ,
    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e ->NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e -
    Womens leather shoes rivets back zipper round toe high top ankle boots ChicNew in box ALEXANDRE BIRMAN Abbe Suede Peep Toe Block Heel Booties Black 5.5L’Artiste by Spring Step Women's Lidia Ankle Bootie - Choose SZ/ColorNew in Box OG by Old Gringo Women's Dulcinea Boot Cognac Open Heel Summer BootFrye Molly Button Tall Leather Boots Size 8 Womens Brown MSRP $398 , New Womens Lotus Black Tanaan Pu Boots Ankle Zip , New Balance WPRSMBW2 D Wide Vazee Prism v2 Black White Yellow Women Running ShoeMan/Woman High Boot Texano Buttero Big clearance sale Trendy Pick up at the boutique , Funtasma Lust-3000 Red Heel Boots - Costume,Fancy Dress,Shoes,Red,Gothic,Gothwomens Lady sequins Stiletto High Heels Pumps Stylish Pointy Toe Shoes Bling , Dansko Professional XP Clog Black Striped Leather Comfort 7.5-8 , Jessica Simpson Womens Leather Kurtis Multicolor Wedge Strap Heels Size 6 1/2BStuart Weitzman Sz 7.5 AAA Navy Leather Classic Pump 2 in Heel , Women Color Block Peep Toe Slingbacks High Heels Stiletto Sandals Shoes Sz N718BALENCIAGA RUNWAY BLACK & WHITE HAND-PAINTED BUCKLE STRAP PLATFORM PUMP 40 $1665 , DOLCE & GABBANA SHOES SNAKE PRINT LEATHER HIGH HEEL STRAPPY SANDALS 39 9 , Gentlemen/Ladies MARNI Black Oxford Platform Shoes excellent quality the most economical Selling new products , Gentlemen/Ladies Dyeables Mila - Color - Champagne Charming design Good market Current shape , PEDRO GARCIA TRICIA WHITE us $475New in Box Stuart Weitzman Lipsync Black Leather Platform Wedge Sandal $395 7.5BGentleman/Lady NEW BALANCE SNEAKERS NEW ML574EGK BLACK wholesale First batch of customers Current shapeMen/Women Nike Flyknit Racer All White excellent quality Has a long reputation Perfect processing , Skechers USA Mens Elment Meron Oxford- Pick SZ/Color.New Dockers Mens Peralta Slip-On Boat Nubuk Lightweight Shoe sz 8M $110Adidas Originals Promodel Metal Toe White/Black BB2131 Women’s Shoes Sz 7.5Reebok Women's Pheehan Run 2.0 Tx Sneakers Size 10 us V56333Nike Zoom Fly Black White Anthracite New Women's Size 8.5 [897821-001] , Chinese Laundry Women's Jaiden Bootie, Pale Nude Suede, 6.5 M US , Durango Women's Western Shoe Boots Shooties Size 9.5 New in BoxRoper Women's Suede Fringe Serape Shoes - 09-021-1781-2048 BR ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e -

    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.

    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e -

    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
    NWOB Illusion Men’s Nike Jordan Illusion Low Nike Basketball 705146-001 Low Size 12.5 MSRP 4fe1c9e
    Athletic Shoes