Never miss an update

Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07

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
Color: black
Brand: adidas Style: Running, Cross Training
Never miss an update

Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07 -

    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07
    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07
    NEW Nike Air Max Sequent 852461-011 Mens Shoes Trainers Sneakers SALE , NEW Nike Air Max 90 Ultra Essential 819474-402 Mens Shoes Trainers Sneakers SALENEW NIKE AIR MAX 90 ESSENTIAL 537384-090 Mens Shoes Trainers Sneakers SALENEW Nike Air Max 90 Ultra 2.0 BR 898010-700 Mens Shoes Trainers Sneakers SALE*Sz US13* NIKE KD VI USA JULY 4th BNWOB 599424 600 kevin durant zoom air , adidas Originals Tubular Shadow Low Top Men's Trainers Shoes Blue/WhiteMENS SAUCONY CARRERA XC 2 MEN'S CROSS COUNTRY SPIKES SHOES , [bargain] Brooks Adrenaline GTS 14 Mens Running Shoes (D) (177) | RRP $230.00 , Asics Gel-Lyte V Men's Sneakers Leather Blue Shoes Casual Trainers hl7k1-3939 , NIKE AIR MAX 90 ICE VOLT-MICA GREEN Size US 11 [631748-700] , NIKE SB AIR FORCE 2 MEN'S SHOES AO0300-300 BROWNMerrell Outperform moab fst mens shoe in navy Size 13 , Nike Kobe Game Royal Blue Green Yellow Brazil Shoes Men's size 8.5 VHTFGentleman/Lady shoes men sport nike Complete specification range Environmentally friendly Valuable boutique1801 adidas Cosmic 2 Men's Traning Running Shoes DB1755Adidas Mens Supernova St Boost mens Running Trainers CG3067 , NIKE KOBE AD A.D ID. GREY-WHITE "MAMBA" SZ 13 [AQ4789-991] , JORDAN WESTBROOK 0.2 "BLEACHED DENIM" MEN Size 8.5 NEW BASKETBALL RARE LEGITGentleman/Lady Kobe X Elite Low Xmas Attractive and durable the most economical Elegant and robust menu , ADIDAS CRAZY 1 C76100 MEN SIZE 11.5 THINK PINK BREAST CANCER NEW BASKETBALL , NIKE AIR HUARACHE RUN SZ 11.5 WHITE/PURE PLATINUM 318429 111Asics Men Shoes Pure White Cheap Runner Sport Racing SneakersNew Under Armour UA Steph Curry 1 Low Hyper Jade Golf Scratch Basketball ShoeMizuno Wave Shadow Men's Running Shoes J1GC173001 A 17DNIKE SHOX GRAVITY TURBO NZ WHITE-BLACK-WHITE SZ 8.5 [AR1999-101] , NEW NIKE ROSHERUN MENS ROSHE RUN SOFT GREY MIDNIGHT FOG CRMSN SHOES 511881-096 , Nike Mercurial SuperflyX 6 Academy IC Men's Indoor Soccer Shoes AH7369-810 1804(094) 100% Authentic Nike Kd 7 Solar Size 9.5 653996-840 , Nike Air Zoom Max LeBron James Summit Lake Shoes Size 11.5 (616175-500) (M-1) ,
    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07 ->Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07 -
    Goth Punk Biker Chick Studded Straps Extreme Platform Boots Shoes Adult WomenAsics GEL-Task [TVR718-0190] Men Volleyball Badminton Shoes White/Black-Volt , Man/Woman Wittner Ladies Shoes Beige Leather Boots Many styles New in stock Excellent functionDansko Leather Multi Colored Professional Nursing Clog Shoes Womens 37 / 6.5 - 7Mark & James By Badgley Mischka Meg Strappy Heels Stilettos Shoes Size 7Men's/Women's Tod's ladies ballerina XXW0HI0A2403U6299C Clearance price Lush design Great choiceGentleman/Lady FLAIR-480 Guarantee quality and quantity At a lower price Shopping promotion , ROBERTO CAVALLI BLUE SUEDE SHOES OPEN TOE BACK ZIPPER HIGH HEELS SIZE 38 SEXYYSL Yves Saint Laurent Lightning Mesh Janis Pumps Shoes Heels 41 11 $875 , NIB MIU MIU PRADA BURGUNDY SUEDE CAGED ANKLE STRAP PLATFORM HEEL SANDALS 35.5Womens Ethnic Floral Rhinestone Sandals Open Toe High Block Heels Pumps Weddingnike 3.0 free trainer size 15 NEVER WORNNIKE AIR MAX MOTION LW 833260-010 BLACK/WHITE MEN SIZE: 8.5~10 AVAILABLEConverse Chuck Taylor All Star Ii Hi Sneaker Men's ShoesMen Wolverine Work Wedge Steel Toe Boot W08289 Leather Honey 100% Authentic New , Nike Air Force 1 Low Aizome Sashiko Japan Midnight Navy SZ US 7.5 ( AR4670-444 )Nike Air Force 270 AH6772-002 Men's Sizes US 7.5 ~ 14 / Brand New in Box!Puma Suede Classic Men's Sneakers Black-White 352634-03Birkenstock Arizona Soft Oiled Leather habana/black/brown Men Sandals Two Strap , WOMEN'S NIKE FREE TR 6 WOLF GREY/WHITE/HYPER TURQ/GHOST GREEN- SZ 8 (833413-003)NEW Nike Womens Air Max 1 Mid Sneakerboot Shoes Boots 8 Pewter/Violet MSRP$120 , Nike Free Transform Flyknit Women's Running Shoe 833410 401 Size 9.5 , Air Jordan Wmns 1 High Zip Premium Women New Black Gym Red Sneakers AT0575-006 , NEW Women's Adidas Original NMD R1 Chalk Pearl Core Black Carbon CQ2011 , Christian Louboutin Gold Lou Spikes Glitter Lame High Top Sneaker Size 34 $1095Allrounder by Mephisto Niro Mary Jane Flat Loop Sneaker Shoe - Womens , Women Sexy High Heel Pointed Toe Hollow Out Buckle Suede Zip Stiletto Shoes PromBare Traps Womens Dallia Closed Toe Mid-Calf Fashion Boots Dark Brown Size 8.5 , Durango women's Weatern Leather boot RD130 Black,White,Red Size 5 M NEW , Womens ME TOO LAVENDAR Black Leather Knee High Boots Sz. 5 M
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07 -

    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.

    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07 -

    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
    Adidas Adidas B41768 Deerupt Deerupt Runner Running shoes black black sneakers fb5df07
    Athletic Shoes