Never miss an update

Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5

Item specifics

: An item that has been or previously. See the seller’s listing for full details and ... Read moreabout the condition
Style: Basketball Shoes
Brand: Air Jordan Color: Black
US Shoe Size (Men's): 11
Never miss an update

Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5 -

    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5
    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5
    New men's New Balance MARISLB1 Running Shoes, sizes 8 & 8 1/2 , Nike Zoom Rival XC Men’s Unisex Track Shoe 904718-017 Black Volt Size 10.5Puma Suede Classic Badge - Red - MensMen's All White Puma Roma Size 9.5 Very Nice!!!Nike LUNAR MAGISTA II FLYKNIT Men's Hi Top Shoes 852614 - Navy Blue size 10 10.5Nike Mens Black Running Shoes Size 13 (25226)NIKE TENNIS CLASSIC ULTRA Men Sz 11 Black Leather White 683613-010 NEW TuxedoGentleman/Lady Puma Men Apex [361652 03] Many styles a good reputation in the world negotiation , $100 NIKE ALPHA MENACE PRO FOOTBALL CLEATS 866012-725 PITTSBURGH STEELERS 11 , NEW Nike Men's Rosherun Bright-Crimson/Orange/White Shoes 511881 663 Size 10.5[MH988-MH988XBK] NEW BALANCE LIFESTYLEMODE DE VIE MENS SNEAKERS NEW BALANCEBLACK , New Mens 13 Converse One Star Pro Mid Deep Bordeaux Leather Shoes $80 155519CNIKE AIR MAX DESTINY TB NEW WITH DEFECTS WHITE VARSITY RED MEN SHOES SZ 7 & 7.5Mr/Ms Globe Skateboard Shoes Filmore Curry Various goods The highest quality material high quality productNIKE AIR FORCE 1 SPRM '07 315095-221 SZ 9.5 KOBE BRYANT LINEN UNIVERSITY BLUE , ADIDAS CAMPUS 2 ORIGINAL D69396 RED WHITE ORIGINAL CLASSIC SUEDE MEN 8VANS OLD SKOOL BLACK/BLACK VN000D3HBKA MEN US SZ 10.5 , Man/Woman PUMA SUEDE CLASSIC SHOES 12 Black Beautiful color Medium cost Elegant and solemn , Men's Nike MercurialX Victory VI CR7 DF IC Grey Metallic SIZE 9.5 903611-001ADIDAS FALCON ELITE 5 shoes for men, Style BA8167, NEW, US size 10 , Jeremy Scott X Adidas originals bear panda size6.5 used , SUPRA VAIDER LC MEN SHOES LT GREY/BLACK/RED SIZE 10.5, 11.5 & 12 , adidas adizero - Black Basketball Shoes (Men's 13.5) - UsedNike Mens Size 11 Air Max Mvp Elite Blue Grey Black Baseball Cleats Metal $150 , Nike Mens Size 14 Air Max Mvp Elite Elt 2 3/4 Black White Baseball Cleats MetalNike Superfly Elite Unisex Track Shoes Spikes 835996 413 Blue Men Size 10.5 , Nike Air Jordan 1 Flight 4 Premium Mens Basketball Shoes Size 11.5 White RedNew! Men's Nike 816747-001 Air Max Dynasty Training Shoes - Black/White A11 , ETNIES Skateboard Shoes SCOUT X JUAN TRAVIESO BLACK/BLUE ,
    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5 ->Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5 -
    ZARA FASHION HIGH HEEL ANKLE BOOT SAND //US 6.5 Ref. 5101/001Women's Denim Blue Western Wear Inlay Butterfly Cowgirl Rodeo Boots Leather SnipSTUART WEITZMAN STIRRUP PYRITE NOCTURNE RAIN BOOTS SIZE 6,5M BLACK GREY $425 , EUC $698 Frye Back Zip Embroidered Logo Taupe Premium leather Riding Boots 6Filippo Raphael Vampire Wedge Leather Boots BNIB RRP $290, Size 38Stuart Weitzman Ballet Flat Quilted Bow Patent Leather Cap Toe Black 11.5 SSPrada Rare 40 Real snake skin womens shoes 100% Authentic Excellent Stylish , Joan & David Closed Toe Suede Shoes In Violet w/ Patent Piping. China Heel.Gentlemen/Ladies Steve Madden BAMELIE Amelie,- Choose SZ/Color. Charming design Reliable performance Different goodsBadgley Mischka Layla Heels Platino Wedding Pump 9.5 M Rhinestones Bridal Peep , Men's/Women's mercibeaucoup, Shoes 223609 BeigexMulticolor 1 Many styles new Suitable for color , Pour La Victoire Sanya Peep-Toe Mule Pump Heels, Raffia , NIB ANDRE ASSOUS BEV NATURAL PYTHON ESPADRILLES SHOES~9V 1969 Italia Womens Loafer Orange PISA$159 New Couleur Pourpre Soft Brown Leather Sandal Shoe sz 6/36 Top quality!NWT Adidas SM Crazy Light Boost Mens Basketball Shoes 16 Orange/White MSRP$140Adidas EQT Support ADV PK, Black / White, Size 11.5 , NEW BALANCE 1300 SZ 7 MADE IN USA DARK GREEN NAVY M1300CAGReebok Men's Club C 85 ESTL SneakerNEW Mens Chippewa Odessa Red Brown Leather Plain Toe Oxford Shoes OCM305006 SZ 8Laredo Men's Paris Western Cowboy Leather Boots Tan 4242Stylish Real Leather Croco Formal Dress Shoes MENS Business Pointy Toe Low Tops , Gordon Rush Men's Leather Brown Double Monk Strap Dress Shoes Size 9 Men'sNIB New Keen Alman Chestnut COMFORT DURABLE SANDALS MANY SIZES AVAAllen Edmonds "MAXFIELD" Loafers 9.5 D Black (449) , PUMA Womens Fierce Gold Cross-Trainer Shoe- Pick SZ/Color.1702 ADIDAS ORIGINALS SUPERSTAR BOLD CG2886 WOMEN'S SNEAKERS 100% AUTHENTICNIKE W Roshe Two Flyknit V2 917688-003 BLACK/BLACK-IVORY-DESERT MOSS Size 9Bunker Nawe, Bottes femme - Noir (Black), 38 EU ùùùùùùùùùùùùùùùGentleman/Lady Ahnu Sugar Peak Black Boots Good design a good reputation in the world Clearance sale
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5 -

    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.

    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5 -

    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
    Air Jordan 1 High High Retro Black Deconstructed mogochinese-29994 Black White Size 11 PREOWNED d09f1f5
    Athletic Shoes