Never miss an update

NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d

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
Color: Blue Product Line: Nike Air
Brand: Nike US Shoe Size (Men's): _
Never miss an update

NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d -

    NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d
    NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d
    NEW NIKE KD 8 PERSEVERANCE TEAM RED/BRIGHT CRIMSON SIZE 10.5 (749375 661) , Nike Zoom Soldier VII Tb Men's Shoes Size 10.5NEW adidas D Lillard - Blue Basketball Shoes (Men's 13.5)Nike iD Air Force 1 Premium Utlity Triple Black Men’s Size 10.5 AJ4764-993MEN'S SHOES SNEAKERS PUMA PACER NEXT SB WTR [366936 01]Nike Classic Cortez Nylon AW 844855-001 OG Grey Running Athletics West RareNike Air Trainer SC High Bo Jackson WHITE ORBIT BLUE COBALT GREY 302346-019 10 , Nike Metcon 1 USA - CHOOSE SIZE- 704688-606 AMP MF White Crossfit One Black Blue , MEN'S SHOES COLUMBIA WOODBURN II WATERPROOF [BM3924 010] , Puma Trinomic XT 2 Plus High Risk Red/Glacier Gray 355868 07 Men's SZ 13JORDAN FLIGHT TIME 14.5 MEN'S MULTIPLE SIZE NEW/ BOX SPORT BLUE 654272 407Nike Air Huarache Run Ultra Pure Platinum/Black-Igloo 819685-006 Men's SZ 7.5 , Nike Zoom Mens 11 Kevin Durant KD VI Supreme Aunt Pearl Floral Pink Blue 618216 , New Balance Men's 2017 Deconstructed Shoes Brown with White , Nike Air Jordan Spizike iD 2015 Custom Men 13 Leather Solar Red [605236-971]Nike Zoom Flyknit Streak London Black/Black Crimson 883300-008 Men’s Size 9.5 , Nike Mens Air Max Ultra 2.0 Flyknit Shoes Sneakers 875943 101 Whtite 10.5 11.5Nike Shoes - 2010 Lebron 8 VIII V/2 Cool Grey - Black White Silver - Size 14 , 8 MEN'S Nike Zoom Vapor 9.5 Tour RF Federer Tennis Shoes White Blue 631458-104NIKE MEN AIR HUARACHE RUN BLACK-WHITE SZ 9 [318429-003] , Nike Air Jordan Mens Future Low Casual Shoes , Brooks Addiction 13 Size US 12 M (D) Men's Running Shoes Gray 1102611D091NEW adidas adipure II Pro TRX - Black/Red Cleats (Men's Multiple Sizes)NIKE HYPERVENOM II FC MEN’S ATHLETIC SNEAKERS 747140-006 Sz 13 , Nike Roshe One Men's Wolf Grey/White 11881023 , Nike Zoom KD 9 Elite 'Hyper Orange' Black/White/Orange,Size US 9, Brand New, DS , NIKE MEN AIR MAX 90 PREMIUM ID CROC PRINT RED-PINK SZ 13 [708279-991] , Nike Zoom Rev Limited Basketball Shoes Yellow Gum Bottom 906874-700 Size 10.5NIKE CLASSIC CORTEZ LEATHER FORREST GUMP MENS SZ 10.5 WHITE RED BLUE 749571 154
    NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d ->NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d -
    Womens Vintage Punk Furry Trim Leather Motor Boots High Heels Snow Shoes Hot SzWomen's Merrell Travvy Waterproof Zip On Boot Clay Brown J02136Dolce Vita Women's Jaegar Boot, Teak, 6.5 M US , women metallic high heel pearl rhinestons ankle boots suede zip shoes grace NewNike Air Force 1 ‘07 Black Suede Sneakers Size 9 , Loeffler Randall Penelope Burgundy Suede Flats Shoes , Versace 19.69 7502 SOFTY PICASSO Loafers Women's Yellow AUNew Manolo Blahnik Ballerimu Leather Bow Mules Polka Dot Flats Shoes Red 40.5 41Bella Vita Women's Gala II Pump Navy Embossed Velvet Size 6 WScholl Orthaheel Impulse Womens Comfortable Supportive Leather Sandals , Nike Dunk High Supreme Spark Black Basketball Sneakers Shoes Mens 6 / Womens 7.5 , New Mens Comfort Embroidery Real Leather Fashion Board Sports Sneakers ShoesNike Air Max 90 Essential 537384-136 Ultramarine Pack Solar Red Infrared New! , NIKE MENS LUNAR MAGISTA II FK FC SHOES 876385-100 SIZE 12.5 NEW IN BOXadidas Originals Stan Smith White Red Mens Casual Shoes Sneakers Trainers M20326Nike Air Force 270 Sherbert Atmosphere Grey Volt Orange Size 11 AH6772-007Russ’s Thick Hide Bullhide Leather Snake Proof Boots Mens 8 C New Old Stock USAMen's Affliction Size 10 Brown Distressed Leather Ankle Combat Boots Cross BootShoes Lumberjack Ankle Boots River SM00101 Nabuk Blu Black LeatherNIKE SB ZOOM STEFAN JANOSKI CNVS QS "BE TRUE" MULTI COLOR 702981 009 SZ 12Dunham Men's Exeter Gore Tex Boot,Brown,10 D US , Alden New England men's dress shoes size 9 BrownFRYE Women's Lena Slip on Sneaker, White, Size 6.0 5jd0 , ASICS Women's GT-3000 5 Running Shoe, Blue/Mint, 10.5 B USCaterpillar CAT Womens Chromatic Comp Toe Work Shoe Blue Black 90691 NEW ALL SZSVince Camuto VC-Kadia Wide Calf Riding Boots - Sz 7 ($198) , ST JOHN'S BAY BLACK WOMENS BOOT SIZE 8M NEW , DT33 LACOSTE US 6 shoes gray suede women bootsNine West 25016269-001 Womens Kimery Black Suede 10 M US , Womens Red Studded Stitched Leather Western Wear Cowboy Boots Snip Toe
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIKE AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d -

    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 AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d -

    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 AIR MAX Blue/Black/White PLUS NS GPX GPX SP SP AJ7181-400 Hyper Blue/Black/White Big Logo Pack c1 aae787d
    Athletic Shoes