Diversification advice

[JohnP936253]

I am looking at investing in an ETF through Vanguard using a tax wrapper, not sure whether to invest in one that tracks the S&P 500 vs a cheap global tracker fund, given that most global trackers seem to include their fair share of US equities, should I opt for a cheap global tracker fund given that I can't predict the long term trends in the global markets?

[fffred]

@JohnP936253 

My opinion, I would keep the US and International investments in separate vehicles. For the purpose of being able to control/adjust the allocation to each that I felt I wanted to apply.

For diversification I would also consider a total US market index fund rather than S&P 500; something like VTSAX at Vanguard rather than VFIAX (or their ETF twins).

Personally, I thought ETFs were pretty cool when they first came out but I have never bought any; I've remained in mutual funds (mostly...and now exclusively...at Vanguard). In later years I saw no pressing need to move into ETFs as I am not a trader. And there are generally some characteristics of mutual funds that I found/find advantageous to my situation versus ETFs.

Good luck!