Never miss an update

NIKE GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409

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
Material: Cotton Width: Medium (D, M)
Pattern: Solid US Shoe Size (Men's): 8.5
Euro Size: EUR 42 Color: White
Product Line: Nike Cortez Brand: Nike
Country/Region of Manufacture: Indonesia UPC: Does not apply
Never miss an update

NIKE GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409 -

    NIKE GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409
    NIKE GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409
    New FILA Mens VOLANTE98 SUEDE WHITE / RED / GREEN FS1HTA3067X US M 7 - 10 TAKSE , AQ1056 Adidas Men Pharrell Williams Tennis HU black core black chalk whiteMan's/Woman's DC Shoes AT-2 Aerotech Size 9 Attractive and durable Cheaper than the price Known for its beautiful qualityAdidas James Harden Boost Vol 1 LS PrimeKnit Size 9 Mens Basketball ShoesAsics Gel Lyte III for J.Crew sneakers Men sz 10 , Nike KD 8 Elite Grey 834135-001 Mens Size - 13.5NEW Men's (ASST SZs) NIKE Metcon DSX Flyknit Training Shoes. 852930-701 VOLT/BLK , Adidas PureBoost DPR Collegiate Navy/Night Navy-Solar Orange S82011 Men's SZ 8.5Nike Men's Size 10.5 Air trainer huarache Hi top trainers 679083 sneakers shoesNew Men's ASICS Gel Sendai 3 Running Shoes Size 7.5 LAST PAIR T643N-9099 Onyx , Nike Air Max 270 желтые яркий редкий цвет Size 41-45NEW NIKE AIR PENNY 2 II 333886-100 WHITE BLACK ROYAL ORLANDO MEN'S SNEAKERNike Free Socfly 724851-010 Running Shoes Lifestyle Black Gray RareAdidas Men's Size 10.5 Blue/White/Lime Terrestrial 250 Athletic Shoes X14-571 , USED Adidas EQT EQUIPMENT GUIDANCE PUSHA T BLACK S7433 SZ 11 FREE SHIP , Puma Suede Mid X Stuck Black Alife 358866 01 Men's SZ 8.5NIKE Lunar Vapor Ultrafly Elite Black Baseball Spikes Cleats NEW Mens 7 8 9 9.5Mens ASICS GEL LYTE Black Suede Trainers H7ARK 9090 , NIKE ZOOM KD 9 843392-611 red University qs prm Kevin Durant Kobe kyrie 9.5 , Puma Duplex Og Men's Sneakers Shoes Classic Retro Trainers 361905-04 New , Nike Air Max Tail Wind 6 Men's Shoes Size , Nike Air Max NM Nomo Soar/White Men's Cross Training Shoes 429749 401 Size 10.5 , NIKE KYRIE IV 4 Decades Pack 80s Uncle Drew LASER FUCHSIA BLACK 943806-007 QSNike Air Force 1 '07 - CHOOSE SIZE - 315122-069 One Pale Grey Black Low LeatherLacoste Fairlead 317 2 Navy White Leather Mens Trainers Shoes , Lacoste LT Dual Elite 317 Men's Causal Fashion Designer Trainers BlackNew FILA Mens VOLANTE98 SUEDE BLACK / WHITE FS1HTA3066X US M 7 - 10 TAKSEMizuno 410991.9074 Wave Rider 22 Black Gold Men's Running Shoes , Vans Vault Old Skool VLT LX Italian Leather Mens Orange Mango VN0A3MUWR2V NIB ,
    Loeffler Randall Women's Greer Ankle Bootie, Dark Camel, 7 M USMr/Ms Skechers Flex Appeal 2.0 Black Sneakers Outstanding features Stylish and fun Elegant and stable packagingnicholas kirkwood Size 38 Blue And Black Pumps , Gentle Souls by Kenneth Cole Women's EIDA Mule with Block Heel Shoe, Floral, 9.5$225 BCBG BCBGMAXAZRIA Womens MA-Darien1 Cutout Pump Shoe, Natural, US 8 , 75% OFF ON UNITED NUDE EMAZ MILAN TAUPE HEELS SIZE WORTH US$499 BRAND NEW , Gentlemen/Ladies blesa femme dorking 5794 sell First quality Current shapeTransparent Womens Rhinestones Slides High Heels Sandals Grace Sequins SlippersLauren Lorraine Anguilla Women's Shoes - Size 7.5, Platino/Clear StonesKAANAS Women's Tatacoa Contrast Stripe Sneaker - Choose SZ/Color , NIKE KD 8 RUNNING SHOES BIG CHUCKY IN BLUE SIZE 10 PRE OWNED , NIKE AIR MAX FLAIR 50 AA3824 100 WHITE DARK GREY MEN'S LIFESTYLE RUNNING SHOES , Adidas ADI EASE PREMIERE ADV Skate Shoes Sneakers NEWNike SB Stefan Janoski OG Dark Army Sail Sz 10.5 833603-331 , DC Shoes NET SE-M Mens Net SE Skate Shoe- Choose SZ/Color.Nike Air Zoom Stefan Janoski SB Perf Blue Recall White Gum dunk max 1 333824 415 , NIKE MENS AIR ZOOM VOMERO 11 RUNNING SHOESOsiris NYC 83 Vlc DCN Tan White Mens Hi Top Skate TrainersVans x Peanuts Snoopy Sk8-Hi Charlie Brown Maize yellow , Gentleman/Lady Creative Recreation Castucci Athletic Men's Shoes Crazy price a wide range of products Full range of specifications , Dr Martens Padten Leather Combat Boots Men's US 7 Women's US 8 Brown Wyoming NEW , Chippewa 1901M25 Dark Brown Mens Utility 6" Cordovan Leather Engineer Boots NewMelson-Rostic Skechers Mens Loafers- Choose SZ/Color.Samsonite Men's Mocassin Shoes made in Italy , Size 9.5 , Color Black , Man's/Woman's ECCO Womens Sense Flat- Pick SZ/Color. New market Pleasant appearance Exquisite processing , CONVERSE ALL STAR Pink using iridescent SWAROVSKI CRYSTALS & STARS WOMEN'S 5-10 , Isabel Marant Sneakers black with lacing. Leather. Portugal , Naturalizer Jakes Women's Black Wide Shaft Boot 5.5M , Skechers Women's Parallel-Double Great Chelsea Boo - Choose SZ/color , Old West Women's Polanil Western Cowboy Boot - Medium Toe - OW2034L
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017

    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 GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409 -

    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 GUMP" CLASSIC CORTEZ LEATHER mogochinese-29998 "FORREST GUMP" WHITE-RED SZ NIKE 8.5 [749571-154] d948409
    Athletic Shoes