Never miss an update

Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac

Item specifics

: An item that has been previously. See the seller’s listing for full details and description of ... Read moreabout the condition
Brand: Nike
Colour: Pink Product Line: Air Max
Size: 10
Never miss an update

Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac -

    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac
    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac
    DC Pure High-Top WNT Women's Shoes Footwear Trainer Skate New , New Nike Air Max 2016 White Sz US womens 9 , New Balance - 860V8 Women's Running Shoe - Black/Pink/GreyINOV8 FASTLIFT 400 BOA WOMENS WEIGHTLIFTING GREY SHOES SIZE US10 UK7.5 EU41.5 , NEW Brooks Vapor 4 - Women's Running Shoes from The Village SportFox racing overload deluxe black white gold womens shoes size 6Nike Air Max Thea Women Trainers in White & Black 599409 103Merrell - Siren Hex Q2 - Oyster GreyWomen's Shoes Sun68 Black Tweed Ally Gold Body Sneaker Fall Winter 2019 , NIKE WOMENS AIR MAX MOTION BLACK WHITE SHOES **FREE POST AUSTRALIANew Puma Womens Trace Varsity Platform Sneakers In Gold Black Leather Womens , NEW Spring Court G2S 2002 - Vintage Twill / WomensASICS WOMENS GT 2000 4 PINK RUNNING SHOES **FREE POST AUSTRALIAWomens Mizuno Wave Rider 19 - Purple, Silver & Pink , NEW! Asics Adult Womens Gel Kayano 24 Triple Black Running Train Gym T799N 9090 , Women's Nike Free Flyknit+.... 615806 710......Size US 8......Running ShoesHelly Hansen Loke Dash Women's Trail Shoes New , Womens New Balance Hierro V3 - Navy / Ink , ASICS GEL LYTE III “Snowflake” US 10 DS , Gentlemen/Ladies Womens Gel-Netburner Super 7 New product Good market Pick up at the boutique , Etnies Jameson HTW Women's Skate Shoes Footwear Trainer Skate New , Men/Women Womens Asics GT 1000 6 Fashion pattern discount Full range of specificationsMerrell Trail Glove 4 Women Trainers in Grey, Purple, Blue & BlackAsics Mens Gel Nimbus 19 Peacoat/Red Clay/Peacoat US Sizes , Gentleman/Lady TOPO TERRAVENTURE Womens Many styles a wide range of products Fair priceElena Iachi Gaga2 Size 6 or 36 Open Toe Boots Shoes Heels NEAR NEW , ASICS GEL-NETBURNER BALLISTIC B557Y.3501 LADIES NETBALL SHOEFox racing overload deluxe black gum pink womens shoes size 9 , BRAND NEW - Skechers Womens Skechers flex appeal arrowhead SHOES WALKING
    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac ->Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac -
    UNITED ARROWS Shoes 891163 Black 36 , I35 Taytee Block Heel Dress Ankle Boots 808, Black, 12 USWomens Kanna Dora Eyelet Mules KHAKI SUEDE Flats , Man/Woman CARVEN Shoes 201431 BlackxWhitexMulticolor 35 elegant online shop CharacteristicsH&M ISABEL MARANT POUR HM Sneakers High shoe EU38-39/UK5-6/US7.5-8 US KID5.5-6.5OSCAR DE LA RENTA Brown Silver Braided Strappy Heels Shoes - Size 38 US 8Jimmy Choo Womens Shoes Size 38 8 Silver Metallic Leather Open Toe Heels , Bloch Women's Chord T-Bar Strap 2" Dance Shoe Tan Size 9.0 , SJP by Sarah Jessica Parker Dazzle US 8 Black Suede Mary Jane Pumps $425$835 New Manolo Blahnik ZUOLIANDA Light Green Suede Sandals Shoes 41 41.5$1145 Valentino Women Suede Stubs High Heel 38 , onitsuka tiger womens colorado eighty five trainers D4S6N 8880 sneakers asicsADIDAS ORIGINALS SUPERSTAR PRIDE PACK RAINBOW LGBT SHOES SIZE MEN'S US 11 CM7802Men Fred Perry Shoes B721 White Sneakers New AuthenticAir Jordan 1 Retro High PREM AA3993 027 Camo Grey Men SZ 7.5 - 13Dan Post Men's Boot Distressed Black Leather Western Cowboy Size 9.5 D , Tom Ford Size 12 Black Ron Suede Desert Boot Chukka Shoes Made In Italy , Eastland Weston Mens Chukka Boot- Choose SZ/Color. , Bostonian Bolton Free Slip On Shoes Leather Mens Dress Shoes Low Heel , Puma Suede Classic Emboss 36305609 Casual Shoes Blue Medium (B,M) Women , Dr.Comfort Men's Vista Slipper Chocolate Nubuck 13Man/Woman womens nike lunarglide size 8.5 wholesale Various types and styles Preferential price , Ahnu Montara Waterproof Hiking Boots - Women's Size 5, Smokey Brown , (DB3038) Women's Pharrell x adidas Solar Hu Glide ST Bold Gold *NEW*Bona Fide Asics Gel Netburner Super 7 Womens Fit Netball Shoe (B) (0109)Born Black Leather Zip Studded Boots Womens Size 7 M Style D85103 , Block Heel Faux Suede Square Toe Revit Back Zip Fashion Women's Ankle Boot 12.5 , Womens Nasty Gal Bad News Black Vegan Suede Over-the-Knee Boot Sz 9 US, 7 UK $90Chic Women Pointy Toe Flat Snake Leather Ankle Boot Shoe Fashion Pull On Retro , NEW! HUNTER Graphite Original Tall Gloss Rain Boots Shoes Size US 5 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac -

    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.

    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac -

    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
    Women’s - Nike Women’s Air Max - Sold Out mogochinese-26034! Pink Fluro Size 10 Euro 42 Like New RRP $220 2ec99ac
    Athletic Shoes