Never miss an update

Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f

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: Casual
Brand: Jordan
Never miss an update

Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f -

    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f
    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f
    MIZUNO WOMAN VOLLEYBALL SNEAKER SHOES / ART. V1GC157063 WAVE TWISTER 4 , NEW Nike Uptempo White Iridescent Green Stucco supreme 917593-001 qs WOMEN 7.5Puma Speed 600 Fusefit Wns Black Winsome Orchid White Women Shoes 191105-02Nike Air Max 90 Ultra Flyknit Multi Color Rainbow Racer Trainer 881109 001 W-6adidas PureBOOST Go W Pink Mystery Ink White Women Running Shoes Sneakers B75666Nike WMNS Air Max 90 SE lifestyle sneakers NEW pink brown white 881105-601 s. 11Reebok Women's Pilox 1.0 Dance Shoe - Choose SZ/Color , Adidas Adizero Tempo 9 Women’s Running Shoes CP9498 Off White Size 7Nike Women's Kwazi Premium Basketball Shoes size 7 style 861664-002 , NIKE WOMEN’S DUNK SKY HI ESSENTIAL WEDGE HEEL BLACK GUM 644877 011 sz 9Line Friends x Reebok Classic Womens Leather Sneakers Athletic Shoes - Baby PinkHeight quality fashion Yeezy Boost 350V2color Black Red woman size6.5as the pictNEW Free People black Stretch Fabric Pull On Ridged Sole Sneaker Boot 39 / 9 , NIKE AIR MAX LD-ZERO ID 2009 2013 PEACH-ORANGE-BLACK SZ 8 [AA3174-992] , WMNS NIKE DUNK SKY HI ESSENTIAL 644877 011 SIZE 10 BRAND NEWNIKE W Nike Flex Trainer 7 898479-100 WHITE Size 11 , NEW WOMENS 6.5 NIKE FREE 4.0 FLYKNIT RUNNING SHOES BRAVE BLUE FUCHSIA 717076 402 , adidas PureBOOST Go W Black Grey White Women Running Casual Shoes Sneaker B75665 , Vans Vincent Van Gogh Museum Sunflowers Authentic Sneakers Women’s 7Men/Women NIKE AIR MAX 90 MESH New varieties are launched High quality and economy Different stylesNike W Air Huarache City Running Womens Shoes Sail AH6787-103 , X Chiara ferragni One Star Silver Glitter Platform Sneaker Converse 8.5Nike Air Jordan High Top women's Sneakers Size 6.5 , Adidas Originals Superstar W [CG5464] Women Casual Shoes White/Navy , New Women's Nike Romaleos 3 Weightlifting Crossfit White Black SZ 9.5 878557-100 , WOMEN’S SHOES VANS CLASSIC SLIP-ON PLATFORM V0018EBWW CHECKERBOARD , Nike WMNS Dunk Sky Hi VT QS Wedges Sz 8 Black Metallic Wool 611908-001 NEW , Asics Gel-Kenun Lyte Limelight Yellow Women Easy Running Shoe Sneaker T880N-8589 , Nike Air Max 1 Women's Ghost Green/Ghost Green/Hot Punch 81101300 ,
    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f ->Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f -
    CLARKS Women's Plaza Pilot Comfort Knee High Boot , NEW FRYE Nat Flower Engineer Mid Calf Studded Boots Brown Sz 7 US $528 GORGEOUS! , Gentlemen/Ladies Toe Warmers Women's Claire Wear resistant buy a lot of varietiesFrye Dorado Buckle Women's Shoes Green Leather Riding Boots Size 6 M $648 , New Frye Boots Vicky Black Leather Engineer Ankle Buckle Boots Booties Size 7 , JEFFREY CAMPBELL Sherise Beige Suede Over Knee Thigh High Pointed Stiletto Boot , WMNS Nike Roshe One Print [599432-003] NSW Running Black/Metallic Silver-WhiteNew Dansko Professional Patent Black Clogs Women's Size 9 EU size 40 NWOB , New Django & Juliette Herry Womens Shoes Casual Boots Ankle , Aerosoles Trend Setter Snake Leather Flat Loafers Choose Sz/Color , Womens Munro 215524 black leather slip on shoes sz. 8.5 NSchutz Janna Black Kid Suede Stappy Thin Dainty Single Sole Dress Sandal$325 J Crew Strappy Black Leather Pumps Heel Pointed Toe Size 10.5 Made in ItalyMen's/Women's Gold Dart Huaraches Nike Easy to clean surface Selected materials TRUE , Spa Slippers Disposable, 25 Pairs Salon Hotel Closed Unisex White Bulk...Men's Nike Air Jordan Ultra.Fly 2 TB Basketball Shoes 921211 011 Size 10 NEW , NIKE AIR JORDAN "ILLUSION" PURE WHITE/GREY 705141-101 SZ 13TRETORN LEATHER TENNIS IN COLLABORATION WITH PUBLISH SZ MENS 9 WHITE OLD SCHOOL , VANS ISO 1.5 (Mesh) True White Lightweight Light VN0A2Z5SISY UltraCush MEN'S 8 , Nike Lebron XIII 13 Low Premium Suede Burgundy Red Gum AH8289-600 Sz 9.5Adidas EQT Support ADV Cargo Olive Urban Earth Night Camo Size 8 BB1307 , NIKE Mens Air Huarache Running Shoe Red/Red Size 10 , Polo Ralph Lauren Men Slaton Pony Sneakers Black White SuedeSUPER HAKKA Shoes 932790 GreenxMulticolor S , Shoes Nike womens Roshe Run 705217 700 Mesh Moda sneakers Gold Black USNike Metcon 4 Particle Rose/Opal/Summit White Women's Cross Training ALL NEW , Women Winter Rain Snow PU Leather Size 11 B(M) Faux Fur Lining KNEE-HIGH BOOTSNEW* Bearpaw ELLE Short GRAY Neverwet Suede 8" Pull On Midcalf BootMadden Girl Women's Dusky Ankle Bootie, Black Fabric, 8.5 M USCarlos Santana Delia Brown Womens Shoes Size 10 M Boots MSRP $169
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f -

    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.

    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f -

    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
    Air Jordan 1 Retro High Women SOH 29889 AO1847 Retro 550 Orchid Mist Women SZ 5 - 12 891741f
    Athletic Shoes