Diversification advice

I am looking at opening a Stocks & Shares ISA with Bux, and am not sure whether to invest in an ETF that attempts to mirror something like the S&P 500, where I’m effectively betting that the US economy will perform well in the long run, or a cheap global tracker fund, which should include plenty of US equities, so assuming that I cannot accurately predict long term trends in the global markets, should I opt for one of these instead to spread my bets more effectively?

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Personally, if you are going the ETF route, don’t just pick the US indeed. However, picking a global tracker means you will be adding a ton of countries that lag and which will drag your results down.

If I’d start a portfolio like that Today I would look to:
-Some EU
-Some Emerging markets
-A tech ETF with software companies
-An ETF that holds REIT’s (for reliable real estate exposure)

ETF’s I would avoid:

  • Car manufacturers (they rarely make long term profits)
  • Airlines (they rarely make long term profits)
  • ARK etf’s (far too speculative and the current market climate is not good for companies that don’t make money)

Hope these pointers give you some food for thought.

AEX index tracker?