Nervous Investors: 1 Stock to Get You Started

Are you nervous or new to investing? This strong ETF offers a way to get in on all the latest stocks without the worry that your shares will suddenly crash overnight.

| More on:
A person suffering

Image source: Getty Images

Here at the Motley Fool, we tend to cover a lot of companies that are trendy. Electric vehicles, cryptocurrency, cannabis — it’s all anyone wants to talk about. But that doesn’t mean we’ve forgotten about the new investors that want something safe.

If you’re a new investor, or even just a bit of a nervous one, don’t let your nerves hold you back. Instead, all you need to do is find the right index, fund, or equity that will help calm your worries. Today, I have just one to consider to get you started.

Choose the right mix

First, let’s look at where my choice came from. There are so many choices on the TSX today, even when it comes to exchange-traded funds (ETFs). You can focus in on a commodity or sector, or you can get a wide range of investments. You can invest directly in a company through equities, or you can buy an equity that touches a lot of sectors, like railways.

If you’re a new investor with a bit of nerves, then I would suggest investing in something simple. For me, that’s going to be an ETF that mirrors the TSX. An ETF with the top 60 TSX companies is the perfect way to do this. Luckily, there are still options for Motley Fool investors, and each provides a reasonable share price to get you in the door.

Why the TSX top 60?

The top 60 stocks on the TSX offer Motley Fool investors access to it all. There are safe gold stocks on there but also cannabis companies. You’ll have access to the tech industry, but also railways. You get it all. And if something drops, you don’t have to worry. The ETF will take care of any changes, so you can rest easy.

There are several companies that offer a TSX 60 ETF. So, what it will really come down to are management fees. You want something that has very low fees, if not zero fees. And today, that really only means one ETF. To me, it’s also the best.


I’d choose Horizons S&P/TSX 60 Index ETF (TSX:HXT) for two reasons. The first is because it offers a management fee of just $0.04, which is absolutely unheard of. In fact, the company boasts the lowest management expense ratio among all listed funds in Canada. The next reason is, the company doesn’t rely on fund managers to actually make its decisions. Instead, it focuses on one thing: data.

Horizons uses artificial intelligence and algorithms to make its decisions on what the top 60 TSX stocks are — no gut feelings; no buying based on fear or greed; just data. And it’s done quite well. In the last year, shares of the ETF are up 21% as of writing. Even during the market crash, shares were back up to pre-pandemic levels by November 2020.

Foolish takeaway

While no stock is a guarantee, Horizons offers safety and security through both its management and data collection. You can rest easy knowing your shares are making strong gains, with access to the latest industries and stocks. So, if you’re a nervous investor or are just getting started, this is absolutely the one for you.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

Man holding magnifying glass over a document
Stocks for Beginners

3 Cheap Canadian Stocks With P/E Ratios of Less Than 10 Times

The price-to-earnings (P/E) ratio is one of the most basic valuation metrics for investors to find cheap Canadian stocks. It …

Read more »

Caution, careful
Stocks for Beginners

Don’t Get Taxed by Surprise: The TFSA’s Dirty Little Secret

Did you know that you can be taxed in a Tax-Free Savings Account (TFSA)? It’s not common knowledge, but it’s …

Read more »

Question marks in a pile
Stocks for Beginners

New Investors: Do You Need Bonds in Your Investment Portfolio?

The traditional investment portfolio would have a bond and equity component. Do you really need bonds in your investment portfolio? …

Read more »

exchange traded funds
Stocks for Beginners

3 of the Best ETFs to Buy in February

After all that’s gone on in the stock market over the last couple of months, there are many high-quality ETFs …

Read more »

Stocks for Beginners

Planning to Invest? 3 Top TSX Stocks to Buy in Your TFSA

With the Canadian stock market currently going through a downturn, now’s the time to be investing in TSX stocks. The …

Read more »

exchange-traded funds
Stocks for Beginners

3 Top ETFs for Tax-Free Passive Income in Retirement

Looking to earn copious amounts of tax-free passive income in retirement? If so, it pays to hold dividend ETFs in …

Read more »

stock research, analyze data
Stocks for Beginners

The 3 Best Canadian Stocks to Buy During a Market Bottom

The S&P/TSX Composite Index continues to go through a turbulent beginning to 2022. In fact, as of writing it hit …

Read more »

TSX Today
Stocks for Beginners

3 Canadian Growth Stocks to Buy That Are Outperforming in the Recent Volatility

The recent market sell-off has caught a lot of headlines. It’s been quite substantial, but you may have noticed not …

Read more »