Never miss an update

Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d

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
Model: Flyknit Racer
US Shoe Size (Men's): 11.5 Modified Item: No
Color: Black Style: Running, Cross Training
Brand: Nike UPC: Does not apply
Never miss an update

Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d -

    Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d
    Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d
    Adidas Ultra Boost UNCAGED CLEAR GREY PK BB3898 YEEZY , ADIDAS SOBAKOV BLACK CORAL SHOES MENS US9 SNEAKER DEADSTOCK NEWMr/Ms Nike Air Pippen Black DS 2009 Exquisite (middle) workmanship Lush design Rich on-time deliveryNIKE AIR TECH CHALLENGE II SP US OPEN SZ 8 621358-146 NIKE LAB NSW MERCER QSNike Air Vapormax '97 AJ7291-100 White/Aqua Varsity Purple Mens Sz 12.5Nike Dunk Low Pro 624044 117 Light Stone / White Obsidian / Tan 2004 New Sz 11.5 , Nike Air Brasilia S.G. Vintage Deadstock Football boots soccer Ronaldo r9Dada Supreme Hi Basketball Shoes Tmbl 099S Rrr Black Chrome Size 11Gentleman/Lady Jordan Future Glow New product Low price Fine wild , Adidas Yung 1 Dragon Ball Z Frieza D97048 , MEN'S NIKE JORDAN BLACK banned fragment bred promo xii 1 xi promo sample sz 9Common Projects Achilles Perforated Nubuck Grey Sneakers Shoes Size 41 EU/ 8 USNIKE AIR JORDAN 11 LOW RETRO XI SZ 10.5 GOLD OLYMPIC CLOSING CEREMONY 528895 103 , Air Jordan 18 Retro “BLUE SUEDE'' Wizards Size 7-13 AA2494-401Gentlemen/Ladies air jordans black cement 3s elegant Cheaper than the price Explosive good goodsNIKE KOBE X AS SZ 14 ALL STAR 2015 BLACK VOLT KOBE BRYANT ASG 10 742546 097Air Jordan 11 Low GOLD CLOSING CEREMONY Size 10.0 With box New Never worn beforeADIDAS X PROTO ULTRA BOOST YELLOW BLUE WHITE US9.5 SHOES DEADSTOCK NMD YEEZY , NIKE AIR MAX 90 HYPERFUSE INDEPENDENCE DAY USA 12 US DS LTD RARE NIKELAB QS TZ , NIKE SB DUNK LOW TRD QS BLACK PIGEON RARE SIZE 6.5 PE QS MAX NRG COMPLEX , Orlando Magic Converse Chuck Taylor All Stars 70 Hi Limited 159399C Sz 11.5Nike Air Max 270 AH8050 012 , Kobe 1 Protro, Black/White/ Varsity Maize,Size 10.5, AQ2728 003 , AIR JORDAN 6 RETRO "SPORT BLUE" - ITEM 4854-7Sneakers Elio Belvedere Shoes Genuine Ostrich Italian Calf Navy Blue 5101 , Man's/Woman's 1997 Jordan 13 He Got Game Great variety High-quality materials Cost-effective , Sz 8 Nike Air Force 1 Low ‘07 Roc-A-Fella Men’s AO1070 101 , Adidas Nemeziz Tango 17+ 360Agigl 360 Agility Orange Black CG3659 Size 10Adidas Originals NMD R1 STLT PK Shoes CQ2388 Running Blue Black White SZ 4-12
    Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d ->Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d -
    BCBGeneration Women's Bekki Mid Calf Leather Buckle Boots Black Size 5.5Pre-owned FRYE Women's PAIGE Dk. Brown Leather Tall Riding Boots 7B Style 77535 , golden goose deluxe brand COWBOY BOOTS, SIZE 36 , DIADORA GAME P GRAPHIC sports shoes man stan sneakers leather smith whiteAdidas Ultra Boost 4.0 CNY Chinese New Year UK11 US11.5Nina Armando Sabrina – Black & Beige Ballet FlatsMen's/Women's Steve Madden Poppi Espadrilles, Champagne Multi for you to choose a variety of Great choiceFashion Women Running High Top Pattern Shoes Athletic Sports Black BasketballNaturalizer Olivia Slip On Peep Toe - Women's Size 8M Black , Authnetic Burberry Nova Check Pump Size 37 BuckleSTUART WEITZMAN Size 6 Burgundy Suede The Rapture Ankle Boots , Nina Elenora Ankle Strap Dress Sandals, New Navy , NEW Donald J Pliner Size 6 Sabrina Rose Gold Smoke Metallic Slide Wedge Sandals , Old Friend Western Slippers Womens Scuff Comfy Wool Lining TPR 441169Calvin Klein Women's Claudia Heeled Sandal - Choose SZ/ColorReebok Hexaffect 5.0 MTM NEW MEN'S Running Shoe RED / White / BLACK SIZE 11Mens Nike Air Max 95 2013 Dynamic Flywire Shoes 599300-034 Size 10Adidas Originals Pro Model Vulc Advance Mens Hi Top Trainers White BY4095 M17 , NIKE AIR MAX 90 ULTRA 2.0 ESSENTIAL 875695-016 BLACK/METALLIC GOLD Mens Sz 8.5Vans Skate high �~ �~ Supreme Ali Marcopoulos from japan (1905 , AIR JORDAN 1 RETRO HIGH OG NRG 'GOLD TOE' - 861428-007 , Vasque Men's Breeze 3.0 Hiking Boot Ebony/GargoyleR - Men's TO BOOT NEW YORK 'Stallworth' Brown Leather Boots Size US 8 - D , Sperry Top Sider Deck Shoes Women 9.5 M Ivory Leather Sneakers Yacht NEW $129 , Gentlemen/Ladies Skechers Women's Go Run 600-Refine Sneaker durability Year-end sale fineNike Free Connect Women's Cross Training Shoe 843966 101 Size 5 , Men's/Women's MINNETONKA Shoes 760796 Brown 8 Cheap Year-end sale Don't worry when shoppingWinter Women Knee High Boots Patent Leather High Stiletto Platform Faux Fur TrimVASQUE Hiking Boots Women Sz 9.5M in Brown Mica II GTX Mid Gore-TexWinter Women Black Ankle Leopard Pointed Toe Short Plush Pearl Low Heels Shoes
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d -

    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 Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d -

    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 Flyknit Racer 526628-009 Triple Size Black mogochinese-18638 Men's Runner Multi Nikelab 526628-009 Size 11.5 400d13d
    Athletic Shoes