Want to Start Investing? Here Are 3 ETFs to Buy Now

If you want to get started investing, here’s an easy way to put your money to work with three of the best Canadian ETFs to buy now.

| More on:
exchange traded funds

Image source: Getty Images

If you’re looking to start investing, deciding which stocks to buy first can be a tough task. In addition to the fact that there are hundreds of stocks to buy, there are plenty of high-quality companies to consider, all in different industries and with operations in different geographies. It can be a lot to keep track of, so instead, you may want to consider finding exchange-traded funds (ETFs) to buy now.

ETFs offer several advantages. It’s one of the main reasons why there are so many different ETFs to choose from. One of the most significant advantages that ETFs offer is instant diversification, which is why they are perfect for when you want to start investing.

Rather than only investing in one or two stocks when you first begin to invest money, you can buy an ETF that offers exposure to several different stocks.

So if you’re looking to start investing or just want to find top ETFs to buy now, here are three to consider today.

Index funds are some of the best ETFs to buy if you want to start investing

Because there are so many different ETFs to consider, there are funds of all types. You can buy an ETF that’s purely growth stocks, for example, or you can buy an ETF that only offers exposure to a single industry.

But one of the best types of ETFs to consider first is one offering exposure to an index fund. That’s why the iShares S&P/TSX 60 Index ETF(TSX:XIU) is one of the largest and most popular ETFs in Canada and one of the best to buy now.

An index fund like the XIU is a great way to gain exposure to an entire country’s economy. It offers exposure to 60 of the largest Canadian stocks from the main market sectors. This is why it’s one of the best ETFs to buy now, especially if you’re just starting to invest. Not only do you gain exposure to some of the highest quality stocks in Canada, but also a significant amount of diversification.

But while the XIU is one of the top ETFs to buy, it only offers exposure to Canadian companies. So you’ll also want to consider funds such as the iShares Core S&P 500 Index ETF (CAD-Hedged)(TSX:XSP), a Canadian investment offering exposure to the U.S. market.

This way, your capital will be diversified even more, and you gain exposure to some of the largest companies in the world.

In this market environment, a low-volatility ETF can help protect your capital

In addition to index ETFs, buying a low volatility ETF could be an excellent idea in this market environment, especially if you’re looking to shore up your portfolio.

That’s why you may want to consider the BMO Low Volatility Canadian Equity ETF (TSX:ZLB). As its name suggests, the ZLB offers investors exposure to several of the safest Canadian stocks you can buy.

These are companies with tremendous operations. But they’re also stocks that won’t be as negatively impacted if the entire market is selling off.

And considering that higher risk growth stocks have been the worst performers lately, an ETF like the ZLB, which also provides a yield of 2.4%, is one of the best ETFs to buy now.

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 Daniel Da Costa 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

woman looks out at horizon
Stocks for Beginners

Here’s How Much Canadians at 35 Need to Retire

If you want to create enough cash on hand to retire, then consider an ETF in one of the safest…

Read more »

Concept of multiple streams of income
Dividend Stocks

Got $10,000? Buy This Dividend Stock for $4,992.40 in Total Passive Income

Want almost $5,000 in annual passive income? Then you need a company bound for even more growth, with a dividend…

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

Watch Out! This is the Maximum Canadians Can Contribute to Their RRSP

We often discuss the maximum TFSA amount, but did you know there's a max for the RRSP as well? Here's…

Read more »

a person looks out a window into a cityscape
Dividend Stocks

1 Marvellous Canadian Dividend Stock Down 11% to Buy and Hold Immediately

Buying up this dividend stock while it's down isn't just a smart move, it could make you even more passive…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

CPP at 70: Is it Enough if Invested in an RRSP?

Even if you wait to take out CPP at 70, it's simply not going to cut it during retirement. Which…

Read more »

worry concern
Stocks for Beginners

3 Top Red Flags the CRA Watches for Every Single TFSA Holder

The TFSA is perhaps the best tool for creating extra income. However, don't fall for these CRA traps when investing!

Read more »

Data center woman holding laptop
Dividend Stocks

Buy 5,144 Shares of This Top Dividend Stock for $300/Month in Passive Income

Pick up the right dividend stock, and investors can look forward to high passive income each and every month.

Read more »

protect, safe, trust
Stocks for Beginners

2 Safe Canadian Stocks for Cautious Investors

Without taking unnecessary risks, cautious investors in Canada can still build a resilient portfolio by focusing on safe stocks like…

Read more »