Never miss an update

NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a

Item specifics

New without box: A brand-new, unused, and unworn item (including handmade items) that is not in original packaging or ... Read moreabout the condition
Activity: Running
US Shoe Size (Women's): 6 Style: Athletic Sneakers
Color: Red Product Line: Air Max
Brand: Nike UPC: Does not apply
Never miss an update

NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a -

    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a
    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a
    adidas Women's Stan Smith Fashion Sneakers - Choose SZ/Color , DC Women's Court Graffik SE Skate Skateboarding Shoe, Denim, 11 M US , adidas Originals Women's Zx Flux Pk Fashion Sneakers -, - Choose SZ/Color , Nike Womens SF AF-1 AIR FORCE 1 Mid Silt Red Pink Dust AA3966 600 Size 8ASICS T6K7N.9797 Womens Gel-Scram 3 Running-Shoes 7.5- Choose SZ/Color. , Asics Comutora MX [1022A014-700] Women Running Shoes Froste Rose/WhiteWomens Skechers Outdoors Ultra Adventures Hiking Waterproof Walking Boot US 6-11Adidas Women's Original Superstar Slip-on BB2122 Sneakers Shoes Suede PinkWmns Nike Blazer Low LE Black White Women Casual Shoes Sneakers AA3961-001Converse Chuck Taylor All Star Boot PC Hi Ash Grey Black 153670C Womens Size 8 , Puma Ignite Mesh Wns Blue Green Womens Racing Running Shoes Sneakers 18858502 , Fila Disruptor II 2 Unisex Sneakers Shoes - Pale Pink(FS1HTA1075X/FS1HTZ3075X)Wmns Nike Roshe Two SI 2 Rosherun Black White Women Running Shoes 881187-001adidas Originals WMNS Superstar 80s Cork women lifestyle sneakers NEW BY2962New Balance Women's W1260v6 Running Shoe - Choose SZ/ColorFila Disruptor II 2 Unisex Sneakers Shoes - White/White(FS1HTA1071X/FS1HTZ3071X)861660-002 Nike WMNS Classic Cortez Leather Lux Women Shoes Sneakers All Sizes , Mr/Ms DIESEL S-IRONIKK sneakers nylon multi-color High grade Modern and stylish fashion The first batch of customers' comprehensive specifications , Wmns Nike Air Max Jewell Particle Rose White Women Running Shoes NSW 896194-602 , adidas Neo 10K W White Silver Leather Women Running Shoes Sneakers AC7786NIB NIKE FREE 5.0 WOMEN'S RUNNING SHOE'S 6.5 FUCHSIA FLASH AWESOME SHOES , Air Max Jewell Silver Bullet 910313-700 sz 6 Women’s 95 97 Vapormax Plus 1 93 98 , NIKE Womens Benassi Duo Ultra Slide 819717-002 BLACK/WHITE Womens Size 11Fila RAY New Disruptor Unisex Sneakers Athletic Shoes - Black/White(FS1SIA3064X)Nike WMNS Tanjun [812655-011] NSW Casual Black/WhiteNike Air Zoom Pegasus 33 Womens Grey Black White Running Shoe 831356 002 Oreo , Nike Presto Fly Running Shoes Size 9 Womens Taupe Grey Trainers 910569 200 New , Adidas Originals Gazelle Women's Primeknit Classic Casual Retro Vintage TrainersPuma Rihanna The Trainer Hi By Fenty Shoes Sz 10 Triple Black Fashion Designer
    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a ->NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a -
    Vince Camuto Kassie Ankle Boots Dark Navy Lux Kid Suede Size 10 MRoyal Elastics Icon 1806 Brown Black Red Gum Women Slip On Casual Shoe 92983-071Steve Madden Graphic Platform Fashion Sneakers, Olive, 7 USNew Skechers Womens Summits Memory Foam Comfortable Wide Fit Slip On ShoesMUCK BOOT MEN'S WELLIE CLASSIC WORK BOOTIvanka Trump Rachae Peep Toe Rear Zip Sandals 427, Black Multi, 6 US , Man's/Woman's Clarks Leather Sandals Bay Blossom use Online a lot of varieties , Tod's Women's 35 Sz 5 Brown Pebbled Leather Driving Penny Loafers Italy $425 , Apex Women's Evelyn Brown Leather Business Shoes , Mia Women's Abba Ankle Strap Wine Leather Heels , Camper Womens Myriam 46796 Dress Pump /- Pick SZ/Color.Mr/Ms Hades Women's Amina Pewter Pumps Selling High quality and economy Lightweight shoesSkechers 31686 Womens Cali Breeze-Glow Power-Two Band Slide Sandal, Rose Gold, 6 , Vintage Men’s High Top Reebok Classics Basketball Shoes Maroon Size 9Man/Woman HUF Skateboard Shoes SOUTHERN RED/TAN Big clearance sale The latest technology British temperament , ASICS Men's Fuzex Running Shoe Blue Indigo Blue/Hot Orange T639N , Puma Men's Ferrari Drift Cat 7 Ankle-High Leather Fashion Sneaker , NIB Nike Dunk Low CL 304714032 Size 10 Proto/Black Forest-Chlorine BlueAir Jordan Retro 6 Olympic 10.5 EUCAdidas PureBoost All Terrain Men’s Running Shoes Size 8.5 NewMen's Nike Zoom Winflo 2 Running Shoes, 807276 003 Size 11 Black/Green Stike , Hello Kitty X Chuck Taylor All Star HI Friends White/Red/Black 162944C Size 6-10K-Swiss Men's Gen-k Icon Knit Sneaker, - Choose SZ/Color , LUCCHESE Brown Alligator Leather Cowboy Boots Mens Size 8.5 D Style 1L217 USACOLUMBIA THREE PASSES MEN CINNAMON BROWN LEATHER CASUAL COMFORT SHOES USA SZ 11 , Skechers Performance Women's Go Walk Joy-15612 Sneaker Black 8 M US , New Balance Womens W990KM4 990v4 990 Shoes Size 11 Pink Ribbon BCA Made In USAMen/Women Naot Women's Borasco Monkstrap Beautiful design Optimal price Various latest designsTahari New Womens Gentry Black Leather Heel Boots 6 M ShoesBed Stu Women's Country Western Brown Mid-calf Leather Boots Booties Size 9
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a -

    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.

    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a -

    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
    NEW Shoes Nike Air 11650 Max 90 SD Red 920959-800 White Running Shoes 920959-800 95 97 Womens Size 6 f9b865a
    Athletic Shoes