There are now a variety of small cap international exchange traded funds (ETFs). Small cap international exposure can be an important part of investors’ asset allocations. Theoretically, investors who stay the course and invest for the long run can benefit by investing in this asset class that has low correlations to common indexes and high expected returns. The three ETFs this post focuses on are the WisdomTree International Small Cap Dividend Fund (DLS), SPDR S&P International Small Cap ETF (GWX), and the iShares MSCI EAFE Small Cap Index Fund (SCZ).
WisdomTree International Small Cap Dividend Fund (DLS)
DLS tracks the WisdomTree International Small …

As key mortgage financiers Fannie Mae and Freddie Mac face financial crisis combined with continued problems in the brokerage sector, the SEC has restricted short selling in these distressed areas. The plan will last 7 days, starting Monday July 21, with the option to potentially extend the order 30 days. The order has been extended additional days.
In his testimony before the Senate Banking Committee on Tuesday, the regulator’s chairman, Christopher Cox, said that the S.E.C. will issue an emergency order adding a “preborrower requirement” on the shorting of Fannie, Freddie …

I just finished reading Liar’s Poker by Michael Lewis. Liar’s Poker is Lewis’s account of his four years (from 1984-1987) working on Wall Street for Salomon Brothers. This book is also on the Sharpe Investing Recommended Reading List. Lewis details his career from the first days of training to his later success in bond sales and trading.
The book is filled with Wall Street greed, trickery, deceit, innovation, and power struggles. I think this book is an excellent and very enjoyable read, and I would highly recommend Liar’s Poker to anyone interested in …

LIBOR stands for London interbank offered rate. Banks in London, similar to the United States, can exchange money between banks. LIBOR is the rate at which banks borrow funds from other banks in the London interbank market.
LIBOR Calculation
LIBOR is an average of actual rates used by banks. To calculate LIBOR, the British Banker’s Association (BBA), surveys a variety of banks that reflect the general market. The BBA then surveys the different banks’ interbank interest rate quotes. These quotes are made available to the public.
The top and bottom quartile of the …

In Investing, You Get What You Don’t Pay For
Remarks by John C. Bogle
Founder and Former Chairman, The Vanguard Group
The World Money Show
February 2, 2005
Orlando, Florida
I’m delighted to be here again to keynote this conference. One very important thing has changed since I last spoke here six years ago, and two vital elements have remained unchanged. That single critical change, and those two things that have remained the same, have revealed three of the eternal verities of investing, and I’m pleased to address both the change and the constancy.
What has changed, …

“Time is your friend; impulse is your enemy.” - John Bogle, Vanguard Group Founder 
“History shows that in the long run a thoughtfully designed, diversified strategy of “passive” funds typically beats all but a few active managers. It’s not easy to structure and maintain such a strategy. It requires some initial research and discipline to stay the course. But it’s much easier than predicting which active managers will randomly beat this approach.” - Eugene Fama, Jr., DFA
When investing passively for the long term, it is crucial to choose a wise investment …