Never miss an update

Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34

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
Brand: Nike
Color: Blue Style: Running, Cross Training
Width: Medium (D, M) US Shoe Size (Men's): 10
UPC: Does not apply
Never miss an update

Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34 -

    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34
    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34
    ASICS GEL-Kenun Shinkai - Navy - MensJuan Mens Black Running Shoes Size 12 (356522) , Lakai Belmont Size 13 Black Nubuck Skater Brady Belmont Shoes Sneakers DeadstockNike Zoom Run The One Men Black Silver James Harden 653636-001 Size 8VANS SK8 Hi (Geo Weave) Eclipse Blue Men's Classic Skate Shoes SIZE 11New Altra AFM1776P 1 Hit XT Black / White Men's Running Shoes Size 8 USNEW Mens Sz 7.5 NIKE Dual Fusion TR 395782 101 White Orange Sneakers ShoesUnder Armour Men's Ua Deception Mid Tpu Baseball Cleat , REEBOK DESTINATION DMX WALK X-WIDE 4E ATHLETIC COMFORT MENS WHITE SIZE 9.5 , Used Worn Size 11.5 Adidas TS Pro Model Basketball Shoes White Red BlackNike KD VI 6 Anthracite Black Total Orange Kevin Durant Size 9.5 ( 599424-007 ) , VANS Bushwick (Bio Wash) Navy/White OTW Men's Skate Shoes SIZE 13sport running shoes for men athletic sneakers in black jogging casual shoes , NEW Mens ADIDAS TOPANGA CLEAN BLACK WHITE SPZL Spezial S80073 hamburg s1MENS PUMA BIOWEB ELITE in colors HIGH-RISE / TWILIGHT / JASMINE SIZE 9 , Nike Waffle Racer 17 Textile Shoes Men's size 14 Red 898041-600 New White , Gentleman/Lady Asics Tiger Men Gel-Classic black H6F3N-9090 durability Modern design Known for its excellent quality , Vans Sk8 Mid Pro Cappuccino/white! Sk8 hi Mid Brown! , NIKE TENNIS CLASSIC CS CONTRAST SWOOSH 683613 105 WHITE/CLEAR JADE TURQUOISEMen's Jordan DNA Basketball Shoe AO1539 001 , NIKE AIR TRAINER 2 VACHETTA TAN ITALIAN LEATHER BO JACKSON SZ 8-13 * 371739-200 , New Men's Adidas Adizero Blue / White Basketball GeoFit Shoes Size 18 , Nike Men's Flex 2017 RN Black White Running ShoesVans Men Era 59 - C And L khaki material mix VN08FSMVFPRO-KEDS PAUL FRANK LOW MEN SHOES BLACK/WHITE SIZE 10.5Nike Free Trainer V7 Size 8 SG 898049 100 Texas Longhorns Desert Orange NCAA , Nike Air Untouchable Vapor Fsu Trainers Size 11.5 , adidas Cf Revival Mid - White - MensNIKE SB PAUL RODRIGUEZ 9 R/R BLACK / BLACK-GYM RED-WHITE ,
    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34 ->Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34 -
    Liberty Women's Vegas Faggio Short Boot - Round Toe Brown 9.5 MBT289 MBT shoes brown leather women bootsVersace 19.69 8122 OTTERTECNO MILITARE Loafers Men's Green AU , Grinders Herald Men's Formal Black 14 Eye Leather Military Boots UK Size 43/9Nike Women's Air Max 1 Ultra Moire Summit White/Cl Grey/Mtllc Slver/Wht Running , Ladies Van Dal Shoes In Pink/Gold Leather Style - 'Tahoe' (Shop Soiled)Katy Perry The Kaitlynn Round Toe Slide Sandals, Black , Klouds shoes - Orthotic friendly comfort leather heels OxfordEurope Womens Patent Leather Ankle Strappy High Heel Ankle Strappy Shoes US Size , naturalizer Lennox Comfort Heels, Black Shiny, 8 USTommy Hilfiger Iconic Elba Sandal Pop Color Womens Navy Red Blue Wedges , YVES ST. LAURENT YSL Burnt-Orange Leather Wooden Platform Flower Mules Sz39ALEXANDER MCQUEEN BLACK PATENT LEATHER & MESH SHOES SZ 6 US 37 ITALY $4630 , **Skechers Skech-Air Cloud Sneakers - Women's Size 6.5 - Black/WhitePebble Pressure Massage Slipper for Women Black Color , New Balance Mens MX624AB2 Training Shoe Leather Black , Gentlemen/Ladies nike zoom mercurial sz 11.5 Complete specification Various types and styles fineNike Air Trainer 1 PRM QS (NFL) Super Bowl 50 Gold 840169-700 Men's Size 8.5 , Nike Lebron XI USA Olympics July 4th 616175 164 qs what the elite xii x ix MEN 8DS MENS NIKE AIR JORDAN VI 6 OLYMPIC 2000 EDITION 136038 461 Sz 9.5 FREE MAX AIR , Mens TO BOOT NEW York Black by Adam Derrick Leather Oxfords Shoes Sz. 11 , Handsome ALLEN EDMONDS MAXFIELD Black Leather Tassel Loafers Sz 10.5B , Bonanza Boots BA-300 Comfort Series 4" Plain Toe Work Shoes Medium Black , New Balance Womens 90s Running 530 Grey w Mint & Black Classics Running Shoe - 8 , Reebok Women's Crossfit Nano 7.0 Track Shoe Guava Punch/White 8 B(M) USHOGAN REBEL WOMAN SNEAKER SHOES CASUAL FREE TIME CODE HXW2610Q901DYV0803 , Nike Air Max 1 'Just Do It' White & Orange - Women's 4-7 Men's 7-11 100 , Bling Nike Roshe One customized with SWAROVSKI Crystals Bling Nude Shoes , XOXO Aldenson Western Ankle Booties, Taupe, 11 US / 43 EUClarks Artisan Black Leather Clarene Sun London Fly Wedge Ankle Boot 10 NEW
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34 -

    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.

    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34 -

    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
    Men's Nike Free 28976 RN Free Run Running Shoes Cyan Blue Cyan/ Orange Sz 10 831508 402 6f5dc34
    Athletic Shoes