Never miss an update

Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76

Item specifics

New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Color: Blue
Idset_Mpn: 4-13 Product Line: Originals
US Shoe Size (Men's): 4-13 Brand: adidas
Style: Running, Cross Training
Never miss an update

Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76 -

    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76
    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76
    AB773 MARIANO DI VAIO shoes black leather men sneakers , Reebok FURY LITE V68763 Grey mod. V68763New NIKE MENS AIR MAX Sequent 3 III GREY / RED 921694-060 US 7 - 10 TAKSE AU , SKECHERS CHAUSSURE DAYSHOW MEMORY FOAM - NAVY - 45 (191665061113)Man's/Woman's Converse BO-158963C_BLACK_ALMOST_BLACK_WHITE_DUST sneaker Men's Black AU Crazy price Order welcome professional designAndrew Charles AC5050 CAMOSCIO TORTORA sneaker Men's Taupe AUBZ899 COLMAR shoes green suede textile men sneakersMens Adidas ZX Flux - S81652 - Green White Trainers , Shoes Nike 943309 004 Revolution 4 GS Black junior Mode casual Sneakers SportShoes Lotto Life's Tracer Plus T6492 Man Sneakers White Blu Sport Casual Logo GyAdidas Original Iniki Runner N-5923 Shoes Running White Black AH2159 SZ 4-11Shoes Asics Gel Lyte Evo h6e2n 2625 man running Burgundy Tango Red , NEW Mens Adidas EQT Cushion ADV size US 7.5AB775 MARIANO DI VAIO shoes blue leather men sneakers EGentleman/Lady Reebok CL LEATHER VINTAGE, Sneaker man superior modern have funAdidas Shoes B44872 Man Vs Peace Blue Sneakers Mode Casual Sport , Adidas Original Swift Run Shoes Runner Shoes Running White Black CQ2116 SZ 4-11Nike FAST EXP-Z07 Runners US Size 10 Pink Stripe Men’s Sizing , Adidas Shoes F99253 Vs Advantage Clean Black Man Sneakers Mode CasualMen/Women Sneakers Diadora Koala Grey online sale Sales Italy King of the crowdNew Adidas Original Mens SUPERSTAR OG WHITE / BLACK CQ2475 US M 7-10 TAKSE AUAH389 LIU JO shoes blue leather men sneakersMen/Women Nike Hyperchase Mens Trainers/Basketball Shoes/Sneakers/Trainers We have won praise from our customers. Modern and stylish fashion renewed on timeAdidas Zx 8000 Boost Men's Shoes Size 9.5Reebok Fan Supreme Ltr Classic V66091 Shoes Shoes Trainers Shoe Size 40,5 , Mr/Ms Converse BO-156741C_STAR_WHITE_BLACK_VAPOROUS_GREY sneaker Men's White AU elegant Environmentally friendly Comfortable and naturalMen's/Women's Superga MOD. COTU CLASSIC Cobalt High grade New design Rich on-time delivery , Man/Woman Sneakers Le coq athletic Reputation first Affordable Shopping promotion , PRO TOUCH CHAUSSURE OZ 2.0 - BLK - 42 (7611310180585)
    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76 ->Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76 -
    Women Dance Thigh High Boots 22cm Heel Shoes Nightclub Party Patent Leather [email protected]NEW RED VALENTINO Black Fur With Bow Lined Combat Leather Boots Shoes Size 7/37 , Adidas NMD R2 X White Mountaineering Size us 11 , Man/Woman Steel Blue Argyle Work Boots use excellent a lot of varietiesNIKE WOMENS RUN SWIFT SANDED PURPLE CRIMSON TINT SHOES 2018 **BEST SELLERWomens Vogue Tassel Real Suede Rabbit Fur Warm Mules Low Heels Loafers Shoes NEWDolce & Gabbana size 38.5 black leather & gold sole heels- great! , Mia Heritage Cristi sandal, ankle strap with fringe, black leather, size 9 , Stuart Weitzman Exsling Black Patent Women's Platform High Heels Sandal 10 (B,M) , Man/Woman Prada 37 Pumps Packaging diversity Quality and quantity guaranteed Seasonal hot saleIrregular Choice Pumps Shoes Platform Wedge Spangled Bows Sz 8 1/2 , NEW!!JIMMY CHOO 'Vita' Pointy Toe Flats- Black Patent- Size US 10.5/(J4)Giuseppe Zanotti Coline Blush / Nude Crystal Strappy Sandals 39Adidas B54367 Women Alpha bounce Running shoes black SneakersNEW! Charles By Charles David Kandy Faux Fur Block Heel Sandal sz 9.5Womens Runway Sexy Nightclub Pointed Toe Snakeskin Parttern Snadal Boots SHoes , Tory Burch Marion Quilted Wedge Sandal Size 6.5 NWB , Mens Sneakers Shoes Basketball Anti-skid High-top Jordan Classic Multi Size NewNew Nike Air Huarache Wolf Grey White Purple Men Running Size 10.5 318429-024[AP9865] Mens Adidas Dame 4 Basketball ShoeNike Roshe One SE Camo Mens 844687-200 Medium Olive Running Shoes Size 8 , NIKE JORDAN GRIND BNIB SAIL/SOLAR RED SIZE 11 AA4302 121New Balance X Wings+Horns MT580 Sz 9 USDouble H Mens Wide Square Toe Roper WESTERN 9.5 D WORK Boot Black/Grey DH3585Man's/Woman's Salvatore Ferragamo Mens Boots 8.5 Every item described is available Order welcome value , Puma The Weekend XO Parrallel Shoe Size 9.5Mens Real Leather Metal Pointed Toe Floral Low Heels Slip On Formal Dress Shoes , Men's/Women's valentino sneakers 38.5 Pink New Listing Beautiful appearance Modern and elegant , Fergalicious Womens Paisley Closed Toe Ankle Fashion BootsFLY London Suede Ruched Ankle Boots with Tie Detail - Yebi Black 40(8.5
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76 -

    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.

    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76 -

    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
    Adidas Running Originals mogochinese-28592 INIKI Runner Shoes Athletic Running Blue Grey BB2099 BB2099 SZ 4-13 a8eda76
    Athletic Shoes