Never miss an update

Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805

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
US Shoe Size (Men's): 10.5 Style: 821772-600
Color: Bright Crimson/Anthracite-Fuchsia Flash UPC: 091205909960
Never miss an update

Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805 -

    Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805
    Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805
    Adidas Men's Alphabounce 1 M Shoe NEW AUTHENTIC Crystal White BW0541: sz. 10.5NIKE FREE RN FLYKNIT 2017 RUN BLACK WHITE GREY RUNNING SHOE 880843 001 SZ 11.5 , Nike Mens FI Impact Free Inspired Spikeless Golf Shoes Waterproof FlywireASICS GEL-Solution Speed - White - MensAdidas Originals Stan Smith PK Primeknit Blue S80067 Men's 8.5 Shoes SneakersNEW NIKE ZOOM = SIZE 11.5 = HYPERREV MENS BASKETBALL SHOES 668776-5652009 Nike Air Jordan VI 6 Retro Black Varsity Red Blue Graphite 384664-001 Sz 14Puma Ferrari Future Cat OG 30600602 Black White Red Yellow Mens Shoes , NEW SUPRA SKYTOP BLACK DARK GREY WHITE 08002-094 SKATEBOARDING SHOES 14Nike Air Huarache Mid Navy/Obsidian-Dark Obsidian-Gym Blue 318429-444 Men’s 10.5829207-100 Kevin Durant NIKE KD 8 AS "ALL STAR" All Sizes 100%Authentic 2016 DS , DS Men's Nike AIR FORCE 1 HIGH '07 Sz 7/WMNS 8.5/[315121 115] I , Mr/Ms Air Jordan Retro 9 Low selling price Sales Italy Full range of specifications , Nike Paul George PG 1 Grey & Midnight Navy Basketball shoes Sz 10 NEW 878627 044Asics Gel Lyte III Men's H627L 0101 Shoes sneakers new Marble PackBrooks Men's Adrenaline Gts 12 White/Obsidian/Brllntblue/Drknvy Running Shoe 8Converse All Star The Simpsons Homer Simpson Sneakers Sz Mens 8 Womens 10 NEW! , Air Jordan 7 Retro VII (Black / White) OREO Football Cleat [719543-010] Men BNIBADIDAS PUREBOOST ALL TERRAIN MEN'S SHOES SIZE 11.5 NEW IN BOX S80786NEW Nike Lebron Soldier IX 9 Premium Black White Crimson 749490-016 SZ 10.5 NWB , Nike Air Jordan 2012 GMP Gold Moments Pack Shoe Men's Size 7 (304775 030) , Nike Air Max Lunar1 [654469-101] Men Casual Shoes White/Red-Grey US 10.0Jordan Retro 8 White/black True Red 2003 Release sz 12SALE M576XIV 576 'Road To London Pack' Size 12-13 BRAND NEW IN HAND , Nike Flyknit Trainer Triple White Gum Mens Running Shoes AH8396-102 Size 11 , ASICS GEL LYTE V 5 TAOS TAUPE TAN BROWN BEIGE HL7A1 0707 SZ 10.5 , New Balance Men 1550 Summer Utility ML1550CW tan nimbus cloud ML1550CW , New Balance Mens M997DT2 Made in USA "Silver Mint" Silver Mint/White Size 9.5Nike Air Zoom Mariah Flyknit Racer Gunsmoke Grey Running Shoe Size 11
    Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805 ->Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805 -
    Pleaser Gothic Fetish Pole Dancer Stripper Clubwear Sexy High Heel Ankle BootsCircle G Women's Copper Overlay Cut Out Booties - Round Toe - Q5049 , Clarks Women's Heath Harrier Ankle Boot,Black,9.5 M USCat Oatman, Men Chukka Boots, Brown Dark Brown , 12 EU , Nike Wmns Air Jordan 1 High Zip Up Leather Black University Red Women AQ3742-016Dolce & Gabbana Runway Embellished Brocade Knee Boots Tapestry BNIB 4 37Via Spiga Damali3 Pointed Toe Side Zip Heels Blue Multi 8US/39EU DisplayDansko SPORT Women BROWN Leather PROFESSIONAL DANCE Shoe PRO CLOGS 37 6.5 1/2-7womens low heel round toe casual fashion fur shoes new hot slip on loafers hotMan/Woman Dansko Professional Lighting Patent Excellent value New design Fair priceBR144 Pin Up Couture White Patent Leather Mary Jane Heels, "Cutie" Size 9Women's Wedge High Heel Platform Ankle Strap Leopard Sexy Party Shoes Plus SizeMen's/Women's NEW FAUZIAN JEUNESSE WOMENS PUMP economic Quality and quantity guaranteed Non-slipBadgley Mischka Womens Dana Ii Dress Pump- Pick SZ/Color.NIKE LUNAR FORCE 1 DUCKBOOT LOW CAMO SIZE US 11.5 AA1125 003 , Nike Free RN Flyknit 2017 Men's Black/Anthracite 80843010Adidas Men's Tubular Doom Pk Originals Running ShoeDickies Everyday Safety Shoes Mens Steel Toe Cap Anti Scuff Toe Heel UK6-14Air Jordan 12 Wings size 9US 8UK DS AJ12 Limited , Tommy Bahama Women's Penelohpe Thong Sandal Size 6 BNIB $88Rockport Men’s Mudguard Brown Leather Walking Shoe Size 7.5W D1615/ , Size 5-12 Steel Toe Rhinestone Leather Mens Slip On Dress Loafer Shoes Sz , Rick Owens x adidas RO Level Runner High Leather Sneaker (9.5 US) Reg $1,349Twisted X Boots Women's Fish Leather Driving Moc Brown/Blue Fish Leather , New Lucky Brand Womens Lk-Yenata Brindle Ankle Boots Size 9.5 , BEARPAW Women's Bethany Snow Boot Tan 8 M USKendall + Kylie Women's Boots Logan Ankle Boot Pointed Toe Shoes Gray 8M , Ladies Chic Ankle Boots Wine Black Block Mid Heel Pointy Toe Luxury Party ShoesAlex Marie Size 6 M TAYLOUR Brown Black Leather Riding Boots New Womens ShoesWomens Over The Knee Super High Heeled Stiletto Boots Leather Nightclub Shoes ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805 -

    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 SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805 -

    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 SE Lunarestoa loophairand-20403 10.5 2 SE Bright Crimson/Anthracite-Fuchsia Flash 821772-600 SZ 10.5 8431805
    Athletic Shoes