Never miss an update

AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0

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
Brand: NIKE
Model: AIR JORDAN 6 RETRO LOW 304401-003 silver US Shoe Size (Men's): 11
UPC: Does not apply Style: Basketball Shoes
Never miss an update

AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0 -

    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0
    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0
    adidas Men's Ace Tango 17.1 Trainer ShoesAIR JORDAN 3 RETRO "2009" 136064-141 white/true blue 3 Size 11 , Nike Air Max Plus TN Men's Black/White/Pure Platinum | SE T0040001Adidas CP9550 Men WH NMD R2 PK Running shoes black sneakersadidas ADIZERO ADIOS UNDFTD b27771 Size 9.5Nike LeBron XIII Mens Midnight Navy/White/Bright Crimson/University Red 07219461Pikolinos Men's San Telmo Closed Toe Sandal M1D-1011 Cuero/Arcilla Calf , AIR JORDAN 7 RETRO "BORDEAUX" 304775-003 black/lt graphite-bordeaux 7 Size 11NIKE AIR MAX 1 ULTRA 2.0 LE 908091-100 white/university red Size 11.5 , NIKE SB DUNK LOW TRD QS "BLACK PIGEON" 883232-008 black/black-sienna Size 8.5ADIDAS ULTRA BOOST UNCAGED TRIPLE WHITE LTD LIMITED 9 9.5Gentlemen/Ladies Reebok Men's Shaqnosis OG Basketball Shoe main category Clearance Breathable shoesAIR JORDAN 1 RETRO CDP 332550-011 black/white 1 Size 11 , NIKE KD VII SE "WHAT THE KD" 801778-944 multi-color/black-horizon Size 10.5KEEN Utility Men's Pittsburgh Soft Toe Boot Cascade/Bombay Brown , Nike Air Max '97 Men's Sail/Black/White R4259100 , adidas Originals NMD R2 Primeknit Men's White/White/Core Red BA7253 , AIR JORDAN 3 RETRO 136064-406 dk pwdr blue/wht-blck-wlf gry 3 Size 8.5 , Man's/Woman's Pikolinos Men's Tarifa 06J-5433 Cuero use Ranked first in its class buy online , Nike Air Max 97 Men's Cool Grey/Deep Pewter/Mushroom/Sail 12834003 , Adidas X 17+ PureSpeed FG Men's Soccer Cleats White/Blue/Grey S82444 FastShip LAIR JORDAN 8 RETRO "TAKE FLIGHT" 305381-305 sequoia/max orange-black Size 8Jordan Retro 1 High Flyknit Men's Black/Game Royal/White 19704006 , Adidas CQ2394 Men EQT Support 93/17 Running shoes black Sneakers , Northwave Scorpius-2 SRS CYCLING SHOES, BLACK/FLURO/YELLOW-Size 42, 43, 44 Or 45AIR JORDAN 9 RETRO 302370-007 black/white-photo blue 9 Size 9.5 , Sperry Top-Sider Men's Gold Harpswell Driving Moc with ASV Tan Leather , Drew Men's Fairfield Loafer Brandy Leather Loafers , AIR JORDAN 15 RETRO LS 317274-071 black/metallic gold-white Size 11 ,
    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0 ->AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0 -
    Men's/Women's Womens size 10 Frye Harness boots. Many varieties Selected materials Non-slip , Nike Kobe AD Black Multi Mamba Day Size 11Shoes Geox Ophira d621ca 08515 c1000 Womens White Casual Fashion SneakersBadgley Mischka Womens Bianca Ballet Flat- Select SZ/Color. , samples shoes DRAVEN DOT MULE PINK WHITE WOMEN , Zara Woman Floral Print Loafers Size 6 NWT , Franco Sarto Women's Pine Espadrille Wedge Sandal , Chic Ladies Gray Cloth Pointed Toe High Heels OL Work Stilettos High Heels ShoesWomens LOUISE ET CIE gold snake print leather d'orsay pumps sz. 6 M NEW! $130Maria Barcelo Metallic Copper Leather Sling-Back Sandal Size 10 (NEW) , Gabor Gabor Sacchetto 35.630 1-2 inch heel shoes-Womens Size 7.5-Black-Pre Owned , Cole Haan Air Vineyard Slingback Sandals Heel Shoes Womens 11 Platino NEW IN BOX , ECCO Womens Belleair Wedge Pump- Pick SZ/Color. , Adidas Originals LA Trainer OG men lifestyle sneakers NEW white and gray size 11 , Men's Puma x Staple Ignite Limitless Puma Black/Puma White 36320201 Brand NewNEW Nike Zoom Pegasus 34 - Running, Cross Training (Men's Multiple Sizes) , New Balance Minimus MR10 BO2 MR10BO2 Running Shoes Men's - Black and OrangeNIKE MEN'S AIR MAGMA 2012 SIZES 6 & 6.5 NEW/BOX 524919 011Clarks x Staple Tawyer Twist Navy Leather NYC 00859 New Sz: 7-13DS Nike Dunk High Premium SB Brooklyn Projects Paparazzi Mens Shoes Size 9Man/Woman MAVERICK-8812 Every item described is available New design Simple* PUBLIC SCHOOL * Black Nubuck Hightop Leather Sneakers + Box Men's US 7 , Mezlan Mens Oxfords Size 9 W Brown Two Tone Leather Shoes , FLORSHEIM BERKLEY MOC TOE PENNY LOAFER SHOES BLACK 17058-01 - Size 7.5 - 3E Wide , Mens Allen Edmonds Burton 8.5 D Black Apron Toe Leather Dress Shoes A045 , Mens Metal Buckle Belt Roma Sandals Boots Leather High Top Zipper Thongs SummerBrand New Women's NIKE Zoom Fit Shoes Cool Grey/white Size 7 (704658 005)Pearl Izumi Elite RD IV Cycling Shoes, Women's Size 8, Black/Purple , MEN'S REEBOK FLOATRIDE RUN 6000 WHITE CASUAL SHOES MEN'S SELECT YOUR SIZE , Womens Block Low Heel Side Zip Warm Ankle Boots Genuine Leather Elegant Shose
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0 -

    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.

    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0 -

    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
    AIR JORDAN 6 RETRO RETRO 11 LOW 304401-003 black AIR/metallic silver-white Size 11 a9040b0
    Athletic Shoes