Never miss an update

Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00

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
Brand: Nike
Style: 831356-001 Color: Black/White-Anthracite-Cool Grey
Never miss an update

Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00 -

    Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00
    Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00
    Vlado Women's Aura Sneaker Orange/Teal Bold Knit SneakersSkechers Women's YOU Serene Slip-on Sneaker Gray Walking Shoes , New Balance Women's FuelCore NERGIZE Cross Training Shoe Overcast/White/HeatherMen's/Women's Skechers Women's D'Lites Sneaker Me Time/Black/White Long-term reputation Cheaper than the price cheaper , Wmns Nike Air Max 90 LX Deluxe Lux Gunsmoke Pink Suede Velvet Women 898512-007grey black Fury SP CLASSIC Sneakers Reebok Women V66115 Insta Pump Casual Shoes , New Balance Wmns 574 NB women sneakers NEW military foliage green grey WL574-FAC , Sperry Top-Sider Women's Walker Turf Rain Bootie Black Rubber WaterproofMen/Women Puma Ladies Pink White Sneakers fashion Known for its good quality Global sales , Asics GT-2000 5 Lite-Show Pale Blue Orchid Women Running Shoe Sneaker T761N-3936 , ADIDAS HIGH TOP BLUE COMFORT SUEDE WEDGE SHOES BOOTS WALKING AW4847 NIB PRM , Gola Women's Coaster Metallic Sneaker Silver Textile SneakersGentleman/Lady Puma Ladies Pink White Sneakers Crazy price Let our goods go to the world Elegant and robust menuOnemix Womens Classic 3 Ways of Wearing Running Shoes Casual Lifestyle SneakersHi-Tec Men's Total Terrain Aero Hiking ShoeAdidas NEO QT Racer [B43758] Women Running Shoes Ice Purple/White , Men/Women Skechers Women's D'Lites Sneaker Biggest Fan/Navy/White Attractive and durable a good reputation in the world Exquisite processing , Wmns Nike Flex 2017 RN Pink Sunset Pulse Women Running Shoes Sneakers 898476-601Adrienne Vittadini Women's Calais Slide Sandal Silver Distressed MetallicNew Balance Wmns Cypher Run NB women running sneakers NEW black white WSRM-CBWPropet Women's Onalee Mary Jane Black Quilted Jersey Hook and Loop , Cole Haan Women's Studio Grand Ballet Flat Argento Metallic Suede/Optic WhiteMen/Women Skechers Women's D'Lites Sneaker Biggest Fan/Gray/White Adequate supply and timely delivery Elegant style Exquisite workmanship , Skechers Women's Flex Appeal 3.0 Finest Hour Slip-On Sneaker Black/BlackNike Zoom Rival D 10 Women's Black/White/Volt 07567017 , Converse Chuck Taylor All Star Hello Kitty Ox Black/Prism Pink/White 162947C 001Nike Air Max 90 Ultra 2.0 GS Barely Rose Pink Women Kids Running Shoe 869951-602Reebok Freestyle Hi Women's Blue Lagoon/White BS9364NEW WOMENS SAUCONY GUIDE 9 RUNNING SHOES - ALL SIZES - SAVE 50% ,
    Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00 ->Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00 -
    Boulet Western Womens Boots, New In Box, Size 9.5 , Aquatalia by Marvin K. 'Uplift' brown leather ridding tall boots sz. 6.5 NEW! , Kathmandu Severn Mens Beach-Hiking Sandals Adjustable SIZE 9 Grey rrp $169.98 , Nike Womens Dual Fusion TR 3 Print Running Trainers 704941 010 Sneakers Shoes , Mizuno Wave Inspire 12 W Black Green Womens Running Shoes Trainers J1GD16-4406Ann Creek Women's Dios Pearl Accent Studded Boot , MIU MIU BY PRADA AUTH $699 Women Brown Leather Kitten Heel Tassel Pumps Size 38 , Jonak 3562051 Croute Laminee Pumps Leather Black 181760Brand New $695 Missoni Platform Peep Toe Heels In Size 37.5/ 7.5 , SS15 Moschino Couture Jeremy Scott Barbie Pink High Heels Leather Pumps *RARE*!Wooden leather clogs F1 White color WomenAbeo Women's Ankle Strap Sandals Metallic Golden Size US 7 () Brand NewSkechers Women's Bikers Curbed Fashion Sneaker - Choose SZ/ColorNEW TRIPPEN TANGO Modern Leather and Wood Sandals Beaded Ankle Strap Black 39 , $640 Cesare Paciotti Womens Pink Patent Suede Sandals PB873010 - Brand new , Nike Zoom Superfly R4 Black Sprint Track Spikes Mens Size 14 526626-035 , Adidas Crazylight 2.5 Active Blue & Neon Men's Basketball Shoes Trainers AQ8597Puma Ferrari Premium Titolo SF Everfit+ Men US 10 Ivory SneakersSZ 7.5 Men's Nike Hypervenom Phantom II 2 FG Soccer Cleats 747490-308 Glow GreenNike Air Zoom LeBron James XIV 14 hex hexzoom out of nowhere silver s 11 DS NEW , NIKE Lebron James SOLDIER XI SFG BASKETBALL SHOES Wheat Metallic GOLD Sz 9.5New Fashion Mens Embroidery Floral Pattern Shoes Slip On Loafers Retro Party USHOGAN MEN'S SHOES SUEDE TRAINERS SNEAKERS NEW INTERACTIVE BROWN 9FE , Clarks MEN CLIMATE IN GTX ACTIVE AIR BLACK LEA / true 7 , Reebok Alicia Keys womens shoes new Freestyle Hi High V46000 F/SSkechers Womens GO Walk Joy-Invite Sneaker- Select SZ/Color.AO1847-545 Air Jordan 1 Retro High Summer of High Women Barely Grapewomen's round toe buckle strap ankle boots strange block heel casual shoes tops , Chic Warm Fur Lined Winter Snow Boots Side Zip Wedge Hidden Heel Riding Boots @New Ladies Waterproof Rubber Ribbon Rain Boots Ankle Jelly Booties Bow Shoes
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00 -

    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 Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00 -

    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 Air Zoom Zoom 5618 Pegasus 33 Black Womens/White-Anthracite-Cool Grey 831356-001 Womens be88f00
    Athletic Shoes