Never miss an update

*Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2

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
MPN: 110142D 903
Brand: Brooks
Never miss an update

*Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2 -

    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2
    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2
    Adidas Swift Run Unisex Running Shoes Carbon/Black/Medium Grey Heather CQ2114 , NIKE - Mens Lunareclipse 5 Running Shoes , MENS BEST GROUP GUST MEN'S TRAINING/SNEAKERS/FITNESS/WALKING BOOTS SHOESAdidas Element Race [DB1459] Men Running Shoes Black/Whiteadidas Clima Cool 1 Mens Running Shoe Black Olicar Trainer New , Nike Flex Contact [908983-001] Men Running Shoes Racer Blue/Black , Nike Lebron Witness II EP James LBJ Black White Men Basketball Shoes AA3820-001Nike Air Zoom Pegasus 33 [831352-302] Men Running Shoes Ghost Green/Black , Asics Gel-Mai RB Asics Tiger Suede Running Shoes 2018 Black/Black H802N-9090Adidas Climacool Vent M Breathable Lightweight Running Navy/Lime Legink CM7397Reebok Print Run Dist [CN1656] Men Running Shoes Navy/WhiteNike Arrowz [902813-001] NSW Casual Wolf Grey/WhiteAdidas Originals X_PLR [CQ2406] Men Casual Shoes White Tint/Black , Nike Zoom Span [852437-400] Men Running Shoes Deep Royal Blue/White-Aqua , Asics Tiger Gel-Vickka TRS White Red Grey Men Casual Shoes Sneakers 1193A033-103Adidas NEO Cloudfoam Advantage Clean [AW3915] Men Casual Shoes Black/White , Brooks Maximus XT 10 Leather Mens Crosstrainer (D)(676) + Free Delivery Aus WideNike Zoom Winflo 4 IV Dark Stucco Sequoia Grey Men Running Shoes 898466-011 , JORDAN MENS HYDRO 7 SLIDE BLACK GOLD WHITE SANDALS 2018 **ALL SIZES BEST SELLERAdidas NEO Cloudfoam Lite Racer [CG5728] Men Casual Shoes Black/WhiteAdidas Men Running Shoes Alphabounce Beyond Training Continental Gym CG4762 New|| BARGAIN || Asics Gel Sonoma 3 Mens Trail Running Shoes (D) (002)DC Pure High Top WC Burgundy White Mens Leather Trainers , Reebok Classic Npc Leather Men's Sneakers Shoes Workout Rbk plus TrainersNike Jordan Formula 23 Low Black White Mens Lifestyle Shoes Sneakers 919724-011Cotswold Mens Stonesfield Leather Hiking Shoe (FS5222) , **Authentic** Nike Revolution 4 Mens Running Shoes (D) (500)Skechers On-The-Go City 2 [54307CCOR] Men Walking Shoes Chaocoal/Orange , Reebok Furylite Refine Hunter Green Olive Men Running Shoes Sneakers BS6044 ,
    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2 ->*Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2 -
    El Vaquero Floral Moccasin fringe Tall boots, EU37, Us 7, Printed Leather , Muck Boots Mens Chore XF Gusset Classic Work Boots (FS5126) , Ladies Padders Dual Fitting E/EE Boots - Shirley , NEW IN BOX JCREW J. Crew Lottie Icy Rose Pink Tassel Flats Sz 7.5 , Juicy Couture New Womens Anita Gold Sequins Leather Flats 6 M Shoes , Naot Primrose Leather Mary Janes, Women's Size 12, Cinnamon , TORY BURC REVA LOGO FRONT BROWN SUEDE LEATHER FLATS SIZE 10.5 , Sarto by Franco Sarto Women's Gretchen Slingback Wild Violet Leather Slingbacks , Walking Cradles Women's Teri Black Leather Slip-on Shoes , Women's Cole Haan Black Leather Buckle Classic Heels Sz. 10B MINTY! , Pancaldi Size 8 AA Narrow P9041 Beige Mesh Fabric Heels Pumps New Womens Shoes , SPERRY Top Sider Silverside Taupe Python Wedge Heels Shoes US 8 NWOBSAM EDELMAN GRACIELA Women Strappy Sandals (9.5 M, SADDLE LEA)New! Adidas Neo Pace VS Black / Blue Black Shoes Mens Sz 10 US 9.5 UK AW4591Brooks GTS 18 Sneaker - Men's Size 13(2E) Dark Navy/Gold , 11.5 NEW! adidas CRAZY TEAM 2017 Basketball Shoes Red Black White Mens B49400 , NIKE Air Max Tavas GS Lifestyle Sneaker Sport Shoes Trainers black 814443 003 , New Men's Adidas PureBOOST - Size 10 - Navy/Black/White - BA8898 , Adidas Ultra Boost 3.0 Silver Super Bowl Size 11.5 , 2005 Nike Air Max 93 Powerwall BRS TZ QS Sz 5.5 HOA Huarache Run LE 314205-221 164-Bottle Essential Oils Presentation Case and Portfolio 5-15ml - Chocolate , men's shoes DI MELLA 7,5 () elegant gray suede AD230-F , BALENCIAGA Off White Leather Fashion Sneakers Shoes Size 9 US 42 EU $565 , Romika Gomera 02 Women Slippers Booties - warm and comfy women boots - NEW , Apex Shoes Athletic A7200W Women's Therapeutic Diabetic Extra Depth Shoe Sz Us 6Propet Women's Wash & Wear Slip-On White/White~ MANOLO BLAHNIK BLACK & WHITE LEATHER OXFORDS / BROGUES (CURRENT!) ~ 37.5 , Carlos Santana Rumer Hawa Boots - Women's Size 8.5M, Black , VTG Women's Leather Campus Riding Boots, Size 75N, Knee-High, Reddish Brown. , Women's Skechers Tall Quilted Boots Gray / Pink Size 9 #RN759-974 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2 -

    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.

    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2 -

    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
    *Save $50* 22518 Brooks Maximus $50* XT 8 Mens Lightweight X-Trainer X-Trainer Mesh Shoes (D) (903) 31e02b2
    Athletic Shoes