Never miss an update

Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace

Item specifics

New without tags: A brand-new, unused, and unworn item that is not in original retail packaging or may be missing ... Read moreabout the condition
Brand: Nike
Size: 10.5 Product Line: Nike Zoom
Never miss an update

Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace -

    Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace
    Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace
    Adidas Womens Energy Cloud US Sizes , New Lacoste Mens Court Master Sneakers In Black Tan Smart CasualWINO G6 SIZE 7us - SKATEBOARD SHOES , Man's/Woman's NEW Adidas Runners Size 8 1/2 High security High quality and economy Vintage tide shoesSkechers Men's Rovato - Texon Casual Shoe , Man/Woman ADIDAS NAVY GAZELLE UK4.5 Elegant shape Price reduction Diversified new designGentlemen/Ladies Nike Zoom All out low 844134-110 Comfortable feeling luxurious professional designNike x Mita Dunk High Deluxe Size US-9 , Gentlemen/Ladies Nike Air Odyssey - Size US9 New Listing Sales Italy Exquisite (processing) processingADIDAS ORIGINALS INIKI BOOST RUNNER SHOES SZ US11 NMD ULTRA EPIC REACT ROSHE RUNReebok Classic Denim / White Mens US 8 New in box , Kobe a.d mid Basketball Shoes Grey/Gold Size 11 , Puma 365 Ignite CT Mens Indoor Football Trainers , BROOKS ADRENALINE GTS 18 MENS RUNNING SHOES SIZE US12.5 EXCELLENT CONDITIONBrandblack Future Legend Size 13 US Men’s basketball shoesMen's Casual Adidas NMD Primeknit Monochrome Black US9.5Man's/Woman's Vans Men's Atwood (Vansguard) Skate Shoe service Comfortable touch Excellent function , Men's Reebok Pump Sport Shoes Size 12US (30cm) BNIB , ASICS Tiger Men's GEL-Lyte Runner Shoe - Stone GreyNike Men's Tiempo Mystic V Tf Turf Soccer Shoe , Nike Training V7 NFL Oakland Raiders Sneakers , NEW Adidas Advantage Clean Sneaker VS Black , Man/Woman Adidas Stan Smith Mens Long-term reputation a wide range of products Known for its beautiful qualityNike Flyknit Racer Size 13 Obsidian/Ghost Green , Mr/Ms Nike Lunarepic Reliable quality At a lower price Shopping promotion , Nike Zoom Strike Mens Running Shoe US Sizes , Nike Lunarcharge Premium Mens Shoes sz 9 USGentleman/Lady ADIDAS BW ARMY Trainer US9.5 Reliable quality Skilled manufacturing Caramel, gentle , Mens Adidas Originals Gazelle Black Size 9 Brand New ,
    Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace ->Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace -
    New $395 La Canadienne Ilona Suede Wedge Booties 9.5 waterproof , Nike Tanjun [812654-011] Men Casual Shoes Black/White , Man's/Woman's High Sneakers Ishikawa Easy to clean surface Stylish and fun renewed on timeEMU Paterson Leather Mini Oak Waterproof BootsAlice & Olivia Gala 968 Dress Sandals White/Pale Gold 9.5US/ 39.5EU DisplayMen's/Women's Witchery Black Boot Clearance price special function comfortable , Dr. Scholl's Womens Flats Size 8.5 Beige Silver Stripe Slip On Flexible Sole , Diesel Continental leather strappy heeled sandals size 9Sam Edelman Haroldson Faux Fur Pompom Navy Leather High Heel Pumps Sz 8.5M 4685 , Nine West Womens Lildevil Synthetic Fashion Sneaker- Pick SZ/Color. , Converse Chuck Taylor All Star Canvas Low Top Sneaker , Nike Roshe One KJCRD 777429 011 Mens Trainers sneakers CLEARANCE , Simms Westshore Shoe - Charcoal - Size 8.5 - SALE - CLOSE-OUTSALE 2016 AIR JORDAN III 3 RETRO WOOL GREY SAIL WHITE 854263 004 DS TRUE BLUE , REEBOK Classic LINE FRIENDS Limited Leather Limited Sz 220-250mm Danner Men's Rivot TFX GTX 8" Boot Black Leather/Nylon , Men's shoes boots leather and snake model PASHA Us size 2 to 12.5Malo Men's Casual Leather Sneakers Brown Yellow Shoes SZ 43 US 10 Made in Italy , Patent Leather Loafer GomminoBoard Driving Slip on Pearls Studs Rivets Men ShoesNew Florsheim Comfortech Radar 7.5 EEEEE black (2541) , Womens Air Jordan 1 Retro Hi Premium Heiress sz 6.5 832596 001 3 4 8 11 12 , New Nike Air Zoom All Out Low Women Size 11 Running Shoe Grey Green 878671 003 , PUMA Women's Ignite Flash Evoknit Sneaker White 7.5 M USWOMEN'S SHOES SNEAKERS REEBOK F/S HI SATIN [CM8903]Minnetonka Women's Blake Fringe Boot Round Toe Black Size 5.0 DOybLadies Boots Bellissimo Fillipa Black Distressed Finish Fluffy Trim Size 5-10 , FUNTASMA Exotica-2020X Series 4" Heel Costume Cosplay Halloween Calf-High BootSam Edelman Posey Black Geniune Suede Leather Boots Booties Sz 9 1/2 9.5 ChainLadies Ankle Boots Chelsea Style Block Low Heel Pull ON Faux Suede Korean ShoesElizabeth And James Boots Shoes Bootie 7 1/2
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace -

    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 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace -

    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 24711 mens 10.5 zoom 10.5 winflo winflo 3. NEW. 7598ace
    Athletic Shoes