Never miss an update

Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507

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
Style: Shoes
Color: Crimson Pulse US Shoe Size (Women's): 5
Brand: Nike Product Line: Air Vapormax Flyknit 2
UPC: 887230304814
Never miss an update

Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507 -

    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507
    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507
    Common Projects Achilles Three Strap White IT35/5 , Christian Louboutin Bip Bip Orlato Silver Sequin Sz 37.5/ US 7 High Top SneakersNIB $900 YSL Saint Laurent Paris Love High Top Glitter White Leather Sneakers39 , Nike Air Max 98 "Gym Red" AH6799-101 Women Sizes NEW 100% AuthenticNew Nike Flyknit Racer Black White Oreo 2.0 526628-012 Fly Knit WOMENS SZ 6 , Womens Nike Air Force 1 Premium 03 Sz 12 OG jordan foam BGentlemen/Ladies saint laurent sneakers 38 Durable service Let our products go to the world best seller , Golden Goose Sneaker V-Star Green-Mat Sliver Star Size 36 / 6 , Golden Goose Superstar Silver Wrinkled Leather 36 BNIB $480 , NIB*Adidas*UltraBoost Parley X Stella McCartney*Running Sneaker*Black White*6-10 , NWOB $1095 Brunello Cucinelli Women's 2Tone Leather Logo Sneakers 40/ 10US A181 , VANS OLD SKOOL (LAZY OAF) PLATFORM SUEDE BLACK SHOES SZ 9 WOMENS RARE NEW NIBNike Womens Vapormax Flyknit 2.0 Size 9.5 Black Wolf Dark Grey Silver 942843-002Givenchy Urban Street Leather Low-Top Sneaker Size 39 Orig:$495.00 Pre Owned , Nike Air Vapormax 97 Metallic Dusk Dark Sea AO4542-901 w/Receipt Size 5-12Nike Air More Money AO1749-001 Women's Sizes US 5 ~ 12 / Brand New in Box! , Adidas NMD XR1 Pink Duck Camo Women's Size 8.5 , Nike Air Jordan VIII 8 Retro White Concord Aquatone 316836-161 Lady Aqua size 8 , Ferragamo "MORGAN T" Women's Logo Sneakers NIB Men's/Women's Luxury Black Women Sneakers Size 8 selling price new Human border , Women's Nike Air Max 97 Ultra '17 "Rose Gold" 917704-902 Size 9.5 US , Nike Air Jordan 1 Retro High SL Satin Shattered Backboard lot AV3725 010 Sz:7.5 , Man's/Woman's Lanvin Logo Leather Flat Clever and practical Strong value Don't worry when shopping , Adidas Womens Ultra Boost Salmon Pink Still Breeze S80686 US 7 LIMITED , 100% AUTHENTIC NEW WOMEN BURBERRY WESTFORD FLOWER SNEAKERS /US 8Nike Air Max 97 Special Edition AQ4137 101 Panache Pack WMNS Sz 7 NO BOX LID , 1980s Vintage Converse All Star CHRISTMAS Hi Top Sneakers Shoes Women's 7.5 USA , Golden Goose Deluxe Brand Superstar Black Glitter Women Sneakers G32WS590.G65 , Women's Nike Air Max 97 Ultra '17 "Rose Gold" 917704-902 Size 8.5 US
    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507 ->Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507 -
    Womens Tory Burch Sand Brown Suede Leather Moccasin Ankle Booties Size 6 , CLARKS Women's Cheyn Web Mary Jane Flat - Choose SZ/colorNew La Canadienne Womens Phinn Black Suede Ankle Boots Size 6.5 , Gentlemen/Ladies CUISSARDES IRFE P.38 Clever and practical Elegant style The first batch of customers' comprehensive specifications , Man's/Woman's ILLUSION-1021 PU Black New market Online Outstanding styleNew Scholl Orthaheel Albury Mens Leather Comfort Supportive Dress ShoesMr/Ms Ladies Gabor Trouser Shoes Style 94494-W Economical and practical Lush design Popular recommendation , Pleaser Shoes 5" Stiletto Black PA Heels Party Evening Office Daily WearDansko Women's Edith Mary Jane Flat - Choose SZ/ColorEarth Guru Wool Slip On Flat - NIB - Free ShippingNEW COLE HAAN WOMENS WOMEN'S 2.ZERØGRAND LASER WINGTIP OXFORD - IRONSTONE NU... , L.A.M.B. Navy Leather Strappy Slingback Platform Sandals Women's Size 6 M* , Womens Robert Clergerie Black Suede Pumps SZ 7.5 Made in FranceYELLOW BOX WOMENS SANDALS KATIE CLEAR SIZE 7.5Women Multi colors Sandals Open Toe Sexy Stiletto Women Shoes Plus US Size 4-20Vionic Nala Red Toe Post Sandal Women's Sizes 5-12 NEW!!! , Vans Gilbert Crockett Pro Mid Demitasse Dachshund sz 6.5 NIBadidas Originals ZX Flux Plus Olive Green Mens Trainers Bootee Style S79062NIKE HyperDunk 2015 Men's Basketball Shoes Boots Orange 749645 808 H , Men's Jordan Hydro 13 Slide Sandals White/True Red/Black 684915 106 , Ewing Image White Gum Patrick Sz 12 1EW90182-156 , Vtg Bally Suisse Men's Black Leather Side Zip Ankle Beatle Boots Mod Wide 7.5 ESperry Top-Sider Men's Billfish Dark Tan Boat Shoe 10.5M , Bed Stu Mens Shoes Penny Loafers US 10 Tan Distressed Leather Moc toe Mismatched , Mens Slip On Loafers Crocodile Print Real Leather Gommino Driving Shoes OxfordsUSED MEN'S DEL TORO PRINCE U VENETIAN SLIPPERS US SZ 10.5G.H. Bass & Co Men's Weejun Layton Leather Tassel Loafer Shoe Burgundy 9 Wide 3E , Reebok Furylite FBT Black Glow Red Chalk Women Running Shoes Sneakers BS6184Taryn Rose Black Kid Suede Ankle Boots with Buckle Made Italy European Size 36.5STEPHANIE Brazil Nubuck Leather Platform Heel Boot Bootie Pump Brown 6/37 New
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507 -

    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.

    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507 -

    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
    Nike 29992 Women's mogochinese-29999 Air Vapormax Flyknit 2 Vapormax Crimson Pulse 942843 800 Size 5 fc56507
    Athletic Shoes