Never miss an update

Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471

Item specifics

New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Brand: adidas
Colour: White Product Line: Ultra Boost
Never miss an update

Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471 -

    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471
    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471
    Man's/Woman's Adidas ultra boost US 9.5 Innovative design Settlement Price professional designNike Air Jordan 1 Retro Hi Flyknit FK Men / Women / Kids BG AJ1 Shoes Pick 1New Arrival Authentic Nike Air Max 270 Betrue Men's Breathable Running Shoes , MENS ADIDAS SAMBA SUPER INDOOR ORIGINALS TRAINER FUTSAL SOCCER BOOTS SHOES BLACKAir Jordan 1 Red Metallic US SZ 9.5 , *BRAND NEW* Air Jordan X Don C Legacy 312 - US 12Nike Air Vapormax Flyknit | Size 9 | Neon | FREE POSTAGE , Nike Air Jordan XX8 Mens Shoes 10.5 Black/ bright CrimsonNike Air Jordan 14 Retro XIV Last Shot Black Red Mens Womens Youth AJ14 Pick 1Nike Air Jordan 1 Retro High OG , Nike Free Run RN Distance 2 Size 10 11 US Black Men’s Running Shoes , Nike Air Max 90 Essential Men’s Sneakers Size 11 US Black Turquoise , 100% AUTHENTIC NEW NIKE AIR MAX 97 OG QS wonUS9 Metallic Silver/White. Worn once , Nike Free Run RN Flyknit 2017 Size 10 US Black Men's Running ShoesNike Zoom Kobe 1 All Star White Black Varsity Red Sz 11 US Mens Kyrie LeBron , Yeezy 500 Utility Black shoe US10.5 Brand new DS Kanye West AdidasNew Balance - Men's Fresh Foam 1080 v8 - Pacific Black/Maldives Blue , Asics Gel-Kayano 24 2E FlyteFoam Mens Cushion Running Shoes Runner Pick 1 , Men's/Women's Nike Jordan 1 Gatorades Blue Lagoons Many styles Beautiful Perfect processing , MENS ADIDAS POWERLIFT 3.1 WEIGHT LIFTING SHOES - ALL SIZES , Nike Air Jordan 13 Retro XIII AJ13 Men Basketball Sneakers Shoes Pick 1Nike Air Max 97 OG OS 'Gold Bullet' US8 9.9/10 , Nike AIR MAX 90 ULTRA Brand New US 11/Genuine Footlocker Edition Black Red , Nike Air Max 270 W US 8 (WHITE/BLACK/TOTAL ORANGE)Asics Gel Kayano 24 Mens Running Shoes (D) (8290) , Kathmandu Strowan Men's Leather Vibram Sole Waterproof Hiking Walking ShoesMEN'S NIKE AIR MAX 95 ESSENTIAL COOL GREYNEW MENS ADIDAS POWER PERFECT III WEIGHT LIFTING SHOES - ALL SIZESAir Jordan 12 Retro PSNY Public School
    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471 ->Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471 -
    Dansko Women's Frankie Ankle Boot - Choose SZ/ColorConverse All Star Classic Sunset Orange High 2017 ORIGINAL ITALIE 2018 U , New Balance ML999WXA D Canvas Waxed Grey Black White Men Running Shoes ML999WXADGentleman/Lady Funtasma GOGO New varieties are launched First batch of customers Immediate deliveryPaul Mayer Attitudes Bravo Lug Sole Ballet Flats 214, Carbon/Humo, 6 USSTUART WEITZMAN Spain Made Women's Black Leather Slingback Pumps Size 7.5 M , AUTHENTIC BUTTER 105 PURPLE BOW PLATFORM HEELS SIZE 41 , Badgley Mischka Women's Kelly II Heeled Sandal, Black, 5 Medium US , Man's/Woman's Vince Camito Leather Boots Diverse new design Elegant and sturdy packaging Excellent workmanshipWomen Real Leather Punk Flat Roman Flip Flops Slingback Ankle Buckle Sandal ShoeVogue Womens Suede Low Heel Lady Bowtie Slip on Sandals Shoes Slides Slippers , Puma Womens Sky II Hi Tan Casual Fashion Sneakers Shoes 7 Medium (B,M) BHFO 2067 , Brooks Women's GTS 15 Adrenaline Running Cross Training Shoes Black US 7Puma Men's Blaze Of Glory Trinomic Crkl Running Shoe , Nike Zoom Hyperfuse 2014 Black Purple Green Grape hyperdunk 12 , Nike Air Revaderchi Men Lifestyle Shoes Gym Red Geode Teal Sneakers AR0479-600 , Jordan 1 Retro OG Shattered Backboard 555088-005 Size 9.5 DEADSTOCK , Nike Air Jordan Retro 3 III NRG Tinker Hatfield Black Nike DS Men’s 7 NYC , Bogs - Johnny Chukka Waterproof Boot Mens Boot- Choose SZ/Color. , STYLE 2412 REDWING 8" WATERPROOF STEEL TOE *******WORK BOOTS***SIze 8eHot Mens British Vintage Leather Moccasins Driving Oxfords Casual Loafers Shoes , adidas Men's Wensley SPZL Clear Granite BA7727Osiris NYC 83 VLC DCN Shoes - Brown / Black / White , Spring Step Men's Montenegro OxfordNew Handmade Men Latest Unique Stylish Shaded Leather Shoes, Men formal ShoesSalvatore Ferragamo Dress Loafer Mens Sz 8.5 D Black Gancini Strap Slip On Italy , Large White pig Print Christmas Running Shoes For Women-Free ShippingRare!!! Melody Ehsani Reebok Snakeskin Spike Sneakers - Size 11 SAMPLESWomens Sequins Denim Ankle Riding Boots Zip Side High Chunky Heels Stilettos F8 , Free People Jeffrey Campbell Knock Out Denim Blue Floral Ankle Booties 8.5 New
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471 -

    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.

    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471 -

    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
    Adidas Ultra Boost White 3.0 jayhmarketing-24495 Size 9us Mens Mens Brand Brand New Shoes Kicks Yeezy 3aff471
    Athletic Shoes