Never miss an update

WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b

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
Style: Running, Cross Training
Color: White US Shoe Size (Women's): 6
Brand: Nike UPC: 888411543886
Never miss an update

WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b -

    WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b
    WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b
    NEW Converse Chuck Taylor All Star Hi DC Comics Wonder Woman Rare PrintNew Vans Old Skool Black Off The Wall Old English Womens Size 9 Rare , Air Jordan 12 XII Retro Womens A06068-203 Vachetta Tan Size 5.5 xi 1banned iv 3Womens Nike Air Max 90 SP Sacai NikeLab Volt Obsidian Blue SZ 8.5 ( 804550-774 ) , ADIDAS WOMENS ULTRABOOST PARLEY AC8205 LEGEND INK-CARBON-BLUENEW ASH Virgin buckle Stone Leather Women's Fashion High Top Sneaker Shoes Kicks , Women's Nike Air Max 98 "Floral Camo" AQ6468-300 Sz 5 , Salomon X Ultra 3 GTX ® Women's Running / Hiking Shoes 398681 18G , **NEW** Nike Air Max 95 Dusty Peach Beige Fashion Sneakers AA1103-201 Size 7.5AUTHENTIC NIKE Air Zoom Pegasus 35 Rust Pink Tropical Pink Guava Ice Women size , Adidas Nmd Tripple Black Womens 6,5 Mens 5 In Good ConditionNike Free TR Flyknit 3 Women's Pure Platinum/Pure Platinum 1212003 , Man's/Woman's Adidas NMD_XR1 Womens - BA7754 Modern and elegant fashion Elegant style Complete specifications , Asics Womens Gel Kayano 25 Shoes 1012A026 color Carbon/Mid Grey Size 9AUTHENTIC NIKE WMNS AIR MAX 2014 621078-100 , NEW WOMENS NIKE METCON 4 CROSS TRAINING SHOES TRAINERS BLACK / WHITE / METALLICMan/Woman Azura Women's Magnif Bootie Easy to clean surface Sales Italy Direct businessWomens Nike M2K Tekno Pink Foam Size 9 - IN HAND , New Nike Womens Air Foamposite One Shoes AA3963-001 sz 7.5 Dark StuccoDrew Women's Morgan Mary Jane , NIKE WOMENS ZOOM FLYKNIT AGILITY WMNS SZ 9.5 WHITE MUTLTI-COLOR 698616-002 QSNIKE AIR MAX Ultra Shanghai Red Floral Sneakers Shoes 747105 US 9.5 $218Nike Air Max 95 WQS Satin Fiberglass White Gum Yellow 919491-301 Women Size 7.5 , Wmns Nike Air Foamposite One Shine Dark Stucco Black AA3963-001 Sz 9 Men's 10.5 , Nike Air Max 270 Pink White Black Womens Size 10.5 New DS Running Athletic ShoesNike WOMEN'S SF SPECIAL FIELD AF1 Hi Rattan SIZE 8.5 BRAND NEW , ASICS Women's Gel-Quantum 360 Shift Running Shoe, Black/Black/White, 10.5 Med...Womens Nike Air Max 97 UL 17 SI Size 10.5 Shoes Particle Rose Indigo AO2326 600Women's Nike Air Max 98 "Floral Camo" AQ6468-300 Sz 5.5
    WMNS NIKE mogochinese-29992 DAY>WMNS NIKE mogochinese-29992 DAY
    Man's/Woman's GOGO-303 White Clear Special price Price reduction Rich on-time delivery , ROBERT CLERGERIE Trendy Ladies Shoes Loafers SZ 8 1/2 B , Dansko Women's Jenna Flat, Black Nubuck, 37 EU/6.5-7 M US , Demonia Charade 4 1/2" skull ankle strap sandals , Free People Womens Stateside Mules Heels Bone Cordovan Size 9 New , Pleaser ADORE-708UVR Womens Clear Pink Heels UV Reactive Platform Strap Sandals , Salvatore Ferragamo Boutique Brown Leather Pumps Shoes Womens Size 8 39 ItalySteve Madden Shawna T-Strap Sandals, Floral Multi, 6.5 USValentine's Day Special-Shetland Sheepdog Print Running Shoes For Women-Free Shi , Women's BORN CROWN 228113 champagne leather ankle strap wedge sandals sz. 9 MMr/Ms Globe Willow Skate Shoes Mens Louis, elaborate Trendy Seasonal promotion , MEN'S NIKE TANJUN *812654 - 011* (BLACK / WHITE) ASSORTED SIZES *NEW IN BOX*New Balance 247 Size 13 Hemp Sea Salt Green Mens Running Shoe Sneaker MRL247HE , Nike Mens MercurialX Proximo II DF TF Soccer Shoes Orange Sz 11 831977-801Hi-Tec Trail OX Chukka I WP Black Brown Waterproof Mens Outdoors Sneakers BootsNew Nike LunarEpic Low Flyknit Black/White 843764 002 Rare! MSRP $160!Men/Women yeezy boost 350 v2 copper High quality and cheap Ranked first in its class Quality and consumer first , Runway Chelsea Mens Real Suede Leather Pointy Toe Ankle Boots High Top Shoes , Laredo Men's Mayfield Cowboy Boot 68395 , Vans Mens Sk8-Hi MTE Cup Cathay Hummus Suede All Weather Shoes Boots Size 8 NWT , MEN SKECHERS PERFORMANCE GO RUN 600 REFINE AUTHENTIC 55061EWW/CHAR SIZE 13 = , Sperry Top-Sider Women's Seacoast Fashion Sneaker Navy/Green STS92940 SIZE 5.5 MSaucony Women's Ride 9 Running Shoe, Navy/Blue/Pink, 7.5 W US , Skechers Sport Women's D'Lites Life Saver Fashion Sneaker, Navy/White, 7.5 XW USSaucony Redeemer ISO Womens Size 7.5W- Silver/Green/BlueOTBT Women's Khora Sneaker Dark Green Leather SneakersNEW Rockport CBD53 Adalia Distressed Leather Bootie, Women's Taupe - Choose Size , Bebe White/Brown Calf Hair Leather Zip High Heel Ankle Boots Size-7.5 MJC New Womens Sexy Leather High Heels Stilettos Pointed Toe Over knee Thigh BootHunter Original Gloss Blue Feather Boots US 4M W23616 w/Original Box/Sleeves LN
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    WMNS NIKE mogochinese-29992 DAY

    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.

    WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b -

    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
    WMNS NIKE mogochinese-29992 DAY" AIR MAX 98 WHITE-BLACK-GYM RED RED SZ 6 "VALENTINES DAY" [AH6799-101] 5a5b46b
    Athletic Shoes