Never miss an update

NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860

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
Product Line: Nike Air
US Shoe Size (Men's): 11 Brand: Nike
Style: Athletic Sneakers Model: Nike Air Max 97 OG X
Color: Black
Never miss an update

NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860 -

    NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860
    NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860
    Nike Zoom Vaporfly 4% Flyknit Bright Crimson Mens (9.5) Womens (11) AJ3857-600NEW DIADORA N9000 "TORO" X 24 Kilates - RARE - US10Gentleman/Lady yeezy boost 350 v2 oreo selling price delicate Excellent functionADIDAS YEEZY Boost 350 V2 Cream Triple White 5 Mens / 6 Wmns CP9366 static NEWNEW FENDI MILANO BLACK LEATHER LOGO CASUAL SNEAKERS SHOES /US 10 , NIB DS Deadstock 2001 Nike Air Force 1 High Lux Shoes Black sz 10.5 (624056-001) , NIKE DUNK LOW PRO SB RAYGUN HOME Size 8.5-13 ORANGE FLASH BLACK BLACK 304292-803 , Nike Air Force 1 2004 OLYMPIC 307334-002 Black/Metallic Silver-Chile MEN SZ 9.5 , Nike Kobe 10 X Elite Low I.D Coal Hearted Grinch Glow in the dark sole size 11us , NIB NEW Maison Martin Margiela Future Gray Low Top Sneakers Sz 13 Men’s (46 EU)Adidas NMD XR1 Primeknit PK Mastermind Japan MMJ Black Sz 11Nike Air Vapormax FK OFF-WHITE AA3831 001 size 5 DS 100% authenticNike Air Jordan 1 Retro High OG 555088 501 Court Purple Size 11Nike Blazer mid off white the ten white black AA3832 100 size 9.5 us / 43 europeAir Jordan 11 Retro Low "Georgetown" - 528895 007 , Adidas Yeezy Boost Wave Runner 700 Solid Grey White Core Black 2018 B75571 7-12Original 1994 Nike Air Jordan 2 DS RESTORED Complete SetThe 10: Air Jordan 1 Retro High OG x Off-White Men’s Sz US 5.5 AQ0818-148 UNCNike Air Jordan Retro Just Don C 2 II Blue Gold 717170 405 US Size 9 , BRAND NEW FEAR OF GOD VANS ERA 95 REISSUE PACSUN FOG WHITE SIZE 5-10Baffin Men's Size 8 Apex Winter Snow Cold Weather Boots (Black / Bark)Corral Men's 12" Square Toe Leather Cowboy Western Boots Sand Beige Wing A2871Wild West Men's Smooth Ostrich XXX-Toe Wingtip Cowboy Western Boots Diff. Colors , Red Wing Men's Heritage Work Chukka Boot Oro-iginal 10.5 DM US , Merrell Men's Wilderness USA Suede Hiking Steel Gray Boots Size US 13 M/ , ADDISON 1975 DISTRESSED BLACK LEATHER STEEL TOE ENGINEER BOOTS SIZE 13.5 E/W , ECCO Men's Holton Penny Loafer - Choose SZ/color , LUCCHESE EXOTIC FULL QUILL OSTRICH WESTERN COWBOY BOOTS SZ 12 AATod's Mens Dark Brown Suede Desert Ankle Boots Size UK6.5/US7.5~Retail $595
    NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860 ->NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860 -
    Corral Circle G Womens Mule Slip On Boot Leather Fashion Heel Snip Toe Brown , Lucchese Womens Gracie M5036 Western Fashion Boot Shoe, Honey, US 6 CWomens Current Valentino Rockstud Boots 38 $1375 , Nike W Flex Trainer 7 (W) Cross Training Womens Shoes Wide Black 898781-001 , Men's/Women's Tommy Hilfiger Vinn2 Flats, Black Fine processing online shop Caramel, gentleGentleman/Lady NEW Easy Steps Paula Pump Beige flagship store comfortability professional design , Tory Burch Allie Black Leather Ballet Flat Size 9.5Naturalizer Iconic Women's leather Heels Sandal, Nickel Alloy, 9 WTeal Green 50s Retro Heels Pin Up Slides Boudoir Slippers Shoes size 7 8 9 10 11 , Women Chic Winter Warm Fur Lining Block Chunky Heels Slip On Loafer Shoes CasualPrada Italy Women's Italy Purple Suede Pointy Toe Shoes Size 37 1/2 (7.5) , *GREEN WITH ENVY** MANOLO BLAHNIK $695 GREEN T-STRAP HEELS 5 35.5 (175657) , Christian Louboutin Daffodile Snakeskin Pumps Size , Jimmy-Choo-Strappy-Wedge-Sandal-Black/Beige- Size 7 US/ 37 $698 (P21)Women's RAINBOW Premier Leather Wide Strap Flip Flops MEDIUM 6.5-7.5 PINK GREY , L'AUTRE CHOSE BLUE SUEDE SLING BACK SANDALNIB NIKE ZOOM ROOKIE LWP BINARY BLUE 2011 BLACK PENNY WHITE Siz 9.5 472688-400ASICS GEL EQUATION 8 T5Q1N 9339 LIGHTNING ELECTRIC BLUE MEN SHOES SIZE 8 , Levis 227511_1794_58_GRIGIO sneaker Men's - colour Grey USUnder Armour Curry 1 PE Surprise Party White Silver Blue 1286288-100 Sz 11.5 , Nike Air Max 90 Essential [537384-128] NSW Running White/Cool Grey-Orange-Black , NIKE CLASSIC CORTEZ LEATHER FORREST GUMP MENS SZ 10.5 WHITE RED BLUE 749571 154 , Brooks Transcend Mens Running Shoes (D) (908) RRP $279.95Nike Air Max 95 Parra Running Man 2007 eur 41 + veste windrunner parra pattaAllen Edmonds Sanford Men Black Leather Wingtip Oxford Shoe Size 10.5 CNEW BALANCE WOMENS WRL247CB Straw Black Wmns 247 Wmns 6-11Converse Chuck Taylor All Star Canvas Low Top Sneaker , Aerosoles Women's Sea Salt Fashion Sneaker, Black Houndstooth, Size 9.5 , Puma X Sega RS-0 White Hawaiian Yellow Juniors Boys Girls Trainers 366950 01Diesel Women's Mannish D-Annish FA Fashion Boot, Tan, 9 M US
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIKE AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860 -

    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 AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860 -

    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 AIR AIR MAX 1986-001 97 OG Size X UNDEFEATED AJ 1986-001 UNDFTD BLACK SPEED RED Size 11 55cd860
    Athletic Shoes