Never miss an update

Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373

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
Modified Item: No
Fastening: Lace Up Style: Running Shoes
EUR Shoe Size (Women's): 37.5 US Shoe Size (Women's): 6.5
Color: White Product Line: Nike Zoom
MPN: 844546-100 Width: Medium (B, M)
Brand: Nike UK Shoe Size (Women's): 4
UPC: 823229178363
Never miss an update

Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373 -

    Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373
    Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373
    Adidas Alpha Bounce Womans Size 8.5 Grey/ White - B54367 , (634835-006) WOMEN'S NIKE AIR HUARACHE RUN BLACK/WHITEadidas swift run womens Originals Size 7 Blue NWTNEW Women's Nike Air Max 90 Essential Black White Metallic Silver 616730-023New!! Nike Women’s TR Flyknit 718785-001 Running Shoes Size 7.5 US A22 , Women's Nike Run Swift Running Shoes, 909006 010 Multi Sizes Black/Mtlc/Grey/HemSaucony Women's Nomad TR Trail Running Shoe Color: Pink/PurpleCONVERSE ALL STAR KNEE HI BLACK SNEAKERS WOMENS SIZE 10 / MENS SIZE 9 /NIKE LUNAREPIC FLYKNIT SHIELD SIZE 6-9 WOMEN'S SNEAKERS SHOES (849665 002) , NIKE PRESTO FLY GS WOMEN NEW W/O BOX!!!! , Under Armour SpeedForm Intake 1301797 941 Womens Running Shoes Gray/Green NIB , Kendall & Kylie Women's Caleb Knit Sneaker , [CQ2448] Womens Adidas Superstar 80S CF W Sneakers - Black , NIKE WOMENS AIR ZOOM VOMERO 13 RUNNING SHOESPropet Women's Work/Slip Resistant Wash & Wear Slip On II W3851 , Nike Air Max 90 Ultra 2.0 Flyknit Women's (Size 7.5) White / Blue 881109 105Nike Women's Air Zoom Structure 20 Size 11 WideNike Shox Gravity Triple White Womens Sportswear Running Shoes AQ8554 100 NIBNew Balance Women's w840v3 Running Shoes, Thunder, 6 B USNike AIR ZOOM VOMERO 11 Women's Running Training Shoes Grey Violet 818100 405 , Nike Women's Lunar Apparent Running Shoe Black/ Anthracite-Grey (908998 002) , Wmns Nike Air Zoom Pegasus 33 Grey Purple Women Running Shoe Sneaker 831356-003NEW WOMEN'S NIKE AIR ZOOM ULTRA (ELEMENTAL ROSE) TENNIS SHOES 845046-651 , Salming Women's EnRoute2, Pink Glo, 9.5 B , Propet Women Washable Walker W3840 - Diabetic Walking Shoes , NIKE Women's Zoom All Out Flyknit Running Shoes~6~Black/Gray~$169~EEUCNike WOMENS Zoom All Out Low 2 Running Shoes AJ0036 201 Multiple Sizes , Women's Nike Metcon 3 Metallic Training Shoes Black Silver Size 6 922880 001 NIBPUMA Women's Rebel Mid WNS EN Pointe Sneaker
    Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373 ->Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373 -
    Harley-Davidson Women's Embossed Detailed Cowboy style boots Size 7 M 98426-96VWMen's/Women's Bandolino Women's Lamariw Fashion Boot Consumer first Skilled manufacturing As of the latest modelMan's/Woman's Diadora Heritage Sneakers N9000 for you to choose Modern design Very good classificationWomens Skechers Go Walk Move Dazzling Boots In Chestnut , CHIC Womens Denim Ripped Round Toe Over Knee Thigh Boots Stilettos Club Shoes AU , Gentleman/Lady Birkenstock ladies sandals 39 the most convenient fashionable Perfect processing , Men/Women Lanvin Black/Beige Mocassins Size 38.5 High quality and low overhead New style Quality and consumer firstonlymaker Women's Round Toe Super High Heel Platform Stiletto Slip On Pumps f... , NWOB RICHARD TYLER EMBELLISHED BLACK EVENING SANDALS 7 MStuart Weitzman Moody Beige Womens Shoes Size 5.5 M Heels MSRP $365Converse Chuck Taylor All Star Printed Beige Red Men Classic Shoes 155382CNike Fs Lite Trainer 3 807113-004 Grey Black Orange Mens US size 12, , New UNDER ARMOUR Slingwrap Running Shoes Casual Mens gray all sizesCAM'RON REEBOK VENTILATOR SUPREME KILLACAM FLEEBOK 9.5US 8.5C PINK , Reebok Classic Leather ALR Mens Running Training Shoes Asteroid Dust/Grey BS5242Men's Nike SFB 6" NSW Leather SneakerBoots 862507-005 Black Mushroom Size 14 , Men/Women NEW Topcrews work shoes, men's 10.5 The color is very eye-catching Reliable performance TRUE , NEW! Vans x Peanuts Slip-On Snoopy Checkered Skate Shoes Black White Men Womens , 33 Dr. Martens Edison Loafter Tassel Leather Cherry Red Shoes Men's 8, 13Gentleman/Lady Vasque Men's Sundowner GTX Hawthorne Waterproof Packaging diversity Elegant style Great choice , Tasso Elba Brown Tan Leather Oxford Plain Toe Derby Men's Shoes 10.5 $150Nunn Bush Men's Norris Slip-On Loafer Wing Tip Cognac Leather 84690-221 , New Balance Women's 696 v1 Sneaker - Choose SZ/ColorWomens Rhinestone Beads Slip On Loafers Casual Shoes Girls Casual Sport Snakers , Skechers Go Walk Joy-Invite Black Pink Multi Women Walking Shoes 15614-BKPKSaucony Womens Kinvara 8 Running Shoe Orange/Yellow/Blue 12 M US , La Canadienne Black Leather Waterproof Boots 7.5 M , Over The Knee High Boots Black Leather Riding Boots Buckle Strap Zip Womens Shoe , Gentleman/Lady Lucky Women's Junes - Choose SZ/Color Online Shopping modern TRUE , Man/Woman Kamik Women's Snowvalley Boot bargain Preferred material Don't worry when shopping
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Women's Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373 -

    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 Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373 -

    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 Air Nike Air Zoom Odyssey/ 2 100 Running Shoe (Size 6.5) White/ Black 844546 100 a698373
    Athletic Shoes