Never miss an update

Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7

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
MPN: Does Not Apply
Color: Gym Red Style: Athletic Sneakers
Brand: Jordan US Shoe Size (Men's): 8.5
Never miss an update

Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7 -

    Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7
    Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7
    Nike New York Giants Free Trainer V7 Ltd Edition AA1948-406 Shoes Size 10BROOKS CASCADIA 12 Trail Running Shoes Men's 11 DMen's Nike Lunar Skyelux Running Shoes White / Platinum Sz 9.5 855808 100Nike SB Janoski Max Thunder Blue - 631304-402 , Nike Presto Fly River Rock/Dark Stucco Size US 11 Men's 908019 009 , Brand New Nike Train Ultrafast Flyknit Gamma Blue Men's Size 13 Training Shoes , New Mens Nike Classic Cortez Nylon Trainers Gym Blue White BNIB 807472 405Nike Zoom Fly SP Running Shoes - University Red/Summit White - Size 10.5 , New Mens Adidas Tubular Invader Strap Blue Shoes Sneakers Size 8.5 BB1170Men's Adidas PureBoost DPR Running Shoes Sz 9.5 Dark Grey / Black / White BB6291 , DC Spartan High WC WNT Men's Size 7 US Black Gold BMX MOTO Skate Shoes Sneakers , NIKE BLAZER ADVANCED Black-White sports fashion sneakers new , NEW NIKE AIR MAX TR 365 MENS RUNNING/CROSS TRAINING SPORT SHOESNIB ECCO Men 'Intrinsic' 2 Slip On Sneakers Black/White Sz 10-10.5Nike Air Zoom Gimme (Spikeless Golf) Men's 11.5 White/White-Black2006 Nike Air Zoom Turf Training Men’s 9.5 315099 141 Barry SandersDC Woodland Boots Men's Size 6.5 US Grey Moc Toe BMX MOTO Hiking Skate BootsNike Air Jordan 5 V Retro Camo 3M 4Y-13 Dark Stucco Fire Red 136027-051Mens Reef Rover Low TX Black Denim Lightweight Casual Trainers Shu Size , Gentleman/Lady Adidas Men's Alphabounce Beyond Diverse new design First batch of customers buy online , NEW ADIDAS MEN'S ACE TANGO 17.1 TRAINER INDOOR SOCCER SHOES SIZE 12 BY1992 , Mens Nike Flyknit Trainer Size 8 (AH8396 400) No BoxNew FILA Piecewise 2 Shoes Athletic Running White Sneakers FS1SIA3281X Size 4-10 , Under Armour 24-7 Low Casual Men's ShoesNike Blazer Studio Low AS QS All Star Vachetta Tan 920366 200 New MensVans Unisex Sk8-Hi Del Pato MTE DX Black POLKA DOTS SCOTCHGUARD Shoes Mens 8.5 , NIKE FREE RN FLYKNIT TEAM RED/BLACK RUNNING SHOES ( 831069 602 ) SIZE 10Men's Nike Metcon 2 Gym Red/Black/Crimson/White Sz 9-10 819899-610 FREE SHIPPING , Sneakers VaporMax 2018 color: Black and Red
    Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7 ->Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7 -
    Lucky Brand Riddick Women's Boots Java Augusta , Sol Sana Women's Kristian Heel Pump, Flame Suede, 37 M EU (7 US) , Unisex Adults Tecnica Moon Boot Classic Plus Metallic Winter Snow Boot All Sizes , SPRING STEP PRO MANILA-BM-M - MANILA Size: - Color: , 8 (worn once!)MERRELL QUEST VALE CHUKKA WOMENS BLACK ANKLE BOOTS QUESTVALErag & bone 'Curtis' Black Leather Loafer Womens Size 7 / 37 , 7 FOR ALL MANKIND Brown Suede Leather Platform Wedge Sandals Shoes Sz 8MAUTHENTIC FENDI 37.5 NEW TAUPE PATENT LEATHER PEEP TOE B BUCKLE PUMPS SHOES NIB , Bernardo Women's Tori Flat Sandal Black 7 B(M) US , Nike Air Max Infuriate Low Men's basketball shoes 852457 001 Multiple sizes , 51893 Extra Wide Black Skechers shoes Men Memory Foam Sport Walk Casual SneakerGentleman/Lady Nike air max griffey 1 freshwater Modern and elegant fashion comfortability Human borderAdidas Jeremy scott bear silver animal wings bones G96187 New rare size6 rareNIKE AIR HUARACHE RUN ULTRA '17 WOLF GREY/GRN [875841 002] MEN'S SZ.13 , Nike Air Zoom Pegasus 34 TB Men's Running Shoe 887009 601 Size 14Nike Lebron X 10 Cutting Jade Tourmaline Black University Red Fiberglass Size 9NIKE AIR FORCE 1 FOAMPOSITE CUP LIGHT CABRON GREY SZ 9.5 [AH6771-002] , NIKE AIR MAX LIGHT ESSENTIAL RUNNING TRAINING SHOES 631722 102 SIZE 10.5 $110 , Merrell Phoenix 2 Mid Thermo Leather Mens Hiking Warm Boots Shoes New J095992013 NIKE LEBRON 10 X EXT CHAMPAGNE CORK QS US 9 CHAMPIONSHIP BROWNDISTRESSED BLK RED WING ZIP UP LOGGER LINEMAN PACKER FARM CHORE BOOTS SIZE 6.5 D , Mens Sz 7M White Rockport XCS Adiprene by Adidas Leather Shoes APM37702 preownedNew Women Eyeglasses Boss 0687 05L 54 , Man/Woman ALDO Mens Bax Aesthetic appearance Affordable Simple , Mens Loafers Tassel Flat Real Leather Casual Slip On Shoes Green Black Party V02Adidas Superstar Metal Toe Womens Shoe Size 6Sam Edelman Women's Tinsley Rain Bootie Black Matte PVC Waterproof Boots , Sexy Women Pointy Pull On Stilettos Low Heel Knee High Boots Casual Shoes Size , STEVE MADDEN LEOPARD PRINT COW HAIR LEATHER ANKLE BOOTS SIZE 8 1/2 - NEW , Elegant Women's Side Zip Black High Heels Casual Shoes US4.5-8 Ankle Boots New
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Air Jordan Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7 -

    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 Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7 -

    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 Eclipse Gym Red Red/Grey/Grey 724010-600 Sz Sz Eclipse 8.5 fb693c7
    Athletic Shoes