Never miss an update

NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761

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
Material: Synthetic
Width: Medium (D, M) Idset_Mpn: 898010-200
Pattern: Breathe Item: 898010-200
US Shoe Size (Men's): Various Style: Running, Cross Training
Color: Green Product Line: Nike Air
Brand: Nike
Never miss an update

NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761 -

    NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761
    NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761
    Reebok Classic Leather Men's Sand Stone/Washed Blue/White BS9745Vans Old Skool Men's Ochre/True White A38G1QA0ASICS GEL KAYANO TRAINER MT SZ 9.5 PEACOAT NAVY BLUE WHITE TRAIL HN7P1.5858New Balance 247 Revlite Knit in Black / Gum Sole MRL247DB Size 10.5 Shoes , Gentleman/Lady BOX C MID COGNAC Fine processing At a lower price Non-slipNike Air Jordan Spiz'ike Black/Red-Cement Grey-Military Blue , Man/Woman Sparco IMOLA-GP-CAM Big clearance sale discount Official websiteNEW adidas Tubular Invader Strap BB8392 Mens Shoes Trainers Sneakers SALENEW adidas Tubular Invader Strap BW0871 Mens Shoes Trainers Sneakers SALE , Babolat Propulse Team BPM Indoor Carpet Tennis Sport Shoes white 30F1560 101 WOWBearpaw Men's Spencer Chukka Hickory II Suede Waterproof Boots , NEW $240 COLE HAAN MENS GRANDMØTION WOVEN SNEAKER STITCHLITE MARINE BLUE SIZE 12NEW Men's Adidas Pride Pack Superstar Limited Edition Shoes Size: 9Sz 13 * Mens Adidas Boston Super Green Black Gold Shamrock / Clover Rare ShoesNew Balance MX624WN Mens X-Trainer Shoes (2E) , Adidas Originals Tubular Radial Mens Ice Mint Green Sneakers Tennis Shoes , 2012 Nike Air Jordan Retro VI 6 Olympic Navy White Red 384664-130 Size 9.5 , Converse Break Point Black Black C Men , Nike AIR PENNY II Men's Shoes 333886 Black/Varsity Blue size 10 basketball , Adidas Alphabounce Men's Running Shoes Size 11 BW0540 , NIKE AIR MAX FLAIR RUNNING SHOES WHITE/PLATINUM SIZE 11 NEW W/BOX (942236-100) , Rare Kenzo Leopard Blue Navy Vans Authentic Old Skool Era Sk8 Hi Skate Shoes 10Adidas Alphabounce 1 Reigning Champ - CG5328Nike 631748-401 Air Max 90 Ice 'Barely Blue' Size 11.5 , Nike KD 8 VIII BLACKOUT Triple Black Cool Grey Dark Gray All Star Size 5.5LACOSTE FAIRLEAD REI SPM BLK/BLK SNEAKERS sale , Adidas AH2107 Men Adizero Club TW Tennis shoes black white pink sneakers , MENS GRAVIS BURTON KINGPIN WHITE CHOCOLATE LEATHER SHOES sneakers skate bowlingConverse BO-151227C_NATURAL_CLEM Men's sneaker - colour Beige US
    NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761 ->NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761 -
    Bruglia Q7961 Women Boots black - leather/suede leather , Ladies Caterpillar Boots Bruiser Scrunch Fur Style ~ KJack Rogers Bailee Scalloped Ankle Boots, Dark Grey , 7.5 USVersace 19.69 B1387ECO CAM VERDE LAM ORO Sandals Women's Light Blue AU , SPRING STEP PRO FERRARA-RBW-M - FERRARA Size: - Color: , NIB $ 220 Baldinini Women's Light Sandals Nude 8.5 US (39 Eu) 768854 Italy , The Flexx A18us women's shoes moccasins wedge D2509 02 DENIZEOPENING CEREMONY Womens Black Leather Slip On Shoes Sz 41ZARA BRAIDED LEATHER BROWN & BLACK BLUCHERS CONTRASTING WHITE HEEL SIZE US 6 , Steve Madden Womens Ritzy High Heel Peep Toe Sandal Shoes , Tod's women Leather Crisscross Heels Shoes Slides in black color size 10.5Lucky Brand Womens LK-Anika Open Toe Casual Slide Sandals , SALE $99 NIB NEW Men's Nike Presto Fly 908019-603 Shoes Rosche Tanjun , US Shoe Size Men Athletic Sneakers Gym Walking Trainers Running Casual Comfort , New Balance MW880GN3 2E Wide Gore-Tex Navy White Men Walking Shoes MW880GN32ESteve Madden Kramerr Boot - Men's Size 8 BlackMen's New Exotic Lizard Design Leather Cowboy Western Rodeo Boots Black R Toe , Vintage Addison 1969 Military Vietnam Era Black Leather Combat Boots 60s Size 9R52700 W Wide Fit Gray Skechers shoes Men Memory Foam Sport Train Comfort Sneaker , Gentlemen/Ladies MEN'S DANNER ACADIA BOOTS STYLE Easy to use Moderate cost comfortable , CHRISTIAN LOUBOUTIN Rollerboy Multi Color Spikes Flat Mens SZ 45.5 / US 12.5New Balance Women's 711v3 Cross-Trainer-Shoes, Pigment/Champagne Metallic, 12 BWomens Hugo Boss 7 M Beige Textured Leather Sneakers Eur 37 Beethoven A055 , Womens Nike Air Max LD Zero Hyper Punch Red Black White Training Shoes Size 9 , Gentleman/Lady OluKai Women's Pehuea Slip On Pavement/Pavement quality First batch of customers various kindsGentlemen/Ladies ASICS Women's GT-2000 5 Running Shoe Year-end special promotions high quality Popular recommendationCLARKS Women's Laureti Pearl Pump - Choose SZ/color , David Tate Women's Model Leather Boot , MATISSE MACK Brown Leather Snakeskin Look Ankle Boots Womens 8 9 M Zip Heel NIB , Columbia Women’s MINX ™ Shorty Omni-Heat™ Waterproof Boot BL1593-010
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761 -

    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 IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761 -

    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 IN IN BOX Men's Nike Max Air Max 90 Ultra BR 2.0 BR Trooper Green 898010-200 b7f9761
    Athletic Shoes