Never miss an update

Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac

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
Brand: Nike
Never miss an update

Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac -

    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac
    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac
    Adidas Originals NMD_R1 W [CQ2013] Women Casual Shoes Raw Steel/WhiteNIKE WOMENS DOWNSHIFTER 8 BLACK WIDE SHOES 2018 **FREE POST AUSTRALIAAdidas NMD_R1 W Primeknit [BB2364] Women Casual Shoes Black/Shock Pink , Nike W EXP-X14 [AO3170-300] Women Casual Shoes Just Do It Mica Green/Storm PinkNike W AF1 Jester XX [AO1220-101] Women Casual Shoes Air Force 1 White , Nike Wmns Air Jordan 13 Retro AJ13 Phantom Moon Particle Womens Shoes AQ1757-004Nike WMNS Air Zoom Fearless Flyknit Lux [922872-004] Women Training Shoes GreyAsics FuzeX [T689N-2306] Women Running Shoes Red/Flash CoralNike Wmns Air Max 97 SE Tartan Black Red Womens Running Shoes NSW AV8220-001GENUINE || Brooks Bedlam Womens Running Shoes (B) (137) , ASICS GEL KAYANO 24 BLUE WHITE WOMENS D WIDE RUNNING SHOES **WORLDWIDE SHIPPINGNike Wmns Air Max 95 LX Lux Particle Rose Pink Women Running Shoes AA1103-600 , BROOKS WOMENS GHOST 11 WHITE PINK BLACK SHOES 2018 **ALL SIZES BEST SELLERAdidas Originals Arkyn W [CQ2748] Women Casual Shoes White/Ash Pearl , ASICS WOMENS GT-2000 5 MIDGREY WHITE PINK GLOW EE SHOES **FREE POST AUSTRALIA , Saucony Xodus ISO 3 Womens Trail Running Shoes - Green/Aqua , SKECHERS WOMENS ULTRA FLEX STATEMENTS TAUPE SHOES 2018 **FREE POST AUSTRALIANike WMNS Free RN Flyknit 2018 [942839-002] Women Running Shoes Black/AnthraciteNike Wmns Air Vapormax Flyknit 2 II White Grey Women Running Shoes 942843-105Asics Noosa FF [T772N-4985] Women Running Shoes Navy/PinkNike WMNS Air Vapormax Flyknit MOC 2 [AJ6599-002] Women Running Shoes BlackNIKE WOMENS ROSHE ONE BLACK DARK GREY SHOES 2018 **FREE POST AUSTRALIA , PHILIPPE MODEL WOMEN'S SHOES LEATHER TRAINERS SNEAKERS NEW PARIS GLITTER WHI 703 , NIKE WOMENS AIR MAX 270 FLYKNIT BLACK WHITE CASUAL SHOES 2018 **FREE POST AUST , **NEW** Brooks Adrenaline GTS 18 Womens Runner (B) (026) , adidas UltraBOOST Uncaged W Primeknit White Grey Women Running Shoes DB1132Adidas Adizero Ubersonic 3 W [AH2136] Women Tennis Shoes Shock Pink/Navy , Asics Dynaflyte [T6F8Y-9606] Women Running Shoes Midgrey/Flash Coral-VoltAdidas Originals Pharrell Williams Tennis HU W [AQ0988] Women Casual Shoes Pink ,
    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac ->Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac -
    Muck Boots Black Women's Arctic Apres Supreme Boot w/ Fleece Lining- Size 5 , Louise et Cie Verrah Women's Brown Leather Riding Boots US Size 8 B ShoesNew AQUATALIA Size 12 FALLYN Black Suede Weatherproof Ankle BootsSalvatore Ferragamo Boots Knee High Black Leather Womens Size 9.5-AA Made Italy , MADE IN ENGLAND Dr Martens Navy 8-Eyelet 1460 Boots, Size , Mr/Ms Ladies Remonte Boots The Style D5870-W Beautiful color Beautiful Maintenance capabilityGentle Souls Womens Penn 2 LE Leather Ballet Flat Shoe, Black, US 6NEW! DANSKO Professional Metallic Croc Bronze Sizes 8 and 9 in Woman's Shoes , Nine West Womens Starship Leather Pointed Toe Slide Flats Wine Size 7.5Franco Sarto Women's Samanta 5 Mule Cocco Diva Suede MulesSalvatore Ferragamo Black Gold Tone Detail Black Heal Loafers Size 9.5 , Diadora Jog Light Canvas - Red - Mens , Nike Air Royal Mid VT Blustery Sail 395757-400 9 , Vans Men Authentic - Decay Palms black true white VN08EMMLDSkechers Variation Mens GOwalk 4 Magnificent Slip-On- Choose SZ/Color. , adidas Men's Cloudfoam Super Daily Sneakers - Choose SZ/ColorClarks Men's Desert Gtx Loden Green Boot 11 Men UsAsics Gel Melbourne OA Mens Walking Shoe (2E) (9077) | SAVE $$$ , British Style Pointed Toe Block Low Heels Canvas Zipper Men's Ankle Boots Ths01 , Prada Men’s shoes sz 7.5 Model 4E1938 - LIGHTLY WORN. , MENS JULIUS MARLOW NOTORIOUS MEN’S BLACK LEATHER WORK SLIP ON FORMAL DRESS SHOES , Nettleton Men’s Brown Leather Buckle Slip On Dress Shoes 9 1/2 C , Nike Air Zoom 90 IT Golf Shoes Black White Womens Size 8.5 , Nike Air Huarache Run Premium TXT Mahogany/Metallic Mahogany AA0523-202 SZ 9.5 , Nike Womens Dunk Sky Metallic Silver Green San Francisco Marathon 635948-001 7.5Women Black Ankle Boots Shoes Sexy Pointed Toe OL Block Low Heels Ruffle SzGentleman/Lady ECCO Women's Zoe Tie Combat Boot Good design high quality comfortableWomens Winter Flowers Embroidery Round Toe Block High Heels Leather Ankle BootsMen/Women Kamik Women's Momentums Snow Boot superior High-quality materials Beautiful and charmingCircus by Sam Edelman Women's Sibley Knee High Boot, Golden Caramel, 9 Medium US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac -

    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.

    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac -

    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
    Nike Wmns Air mogochinese-29999 Vapormax Cushioning Running Running 2018 Wmns Vasty Grey/Ultramarine AH9045-008 85101ac
    Athletic Shoes