Where to Invest $10,000 in April 2024

If you’ve already created a diversified portfolio and are looking for more options from a windfall, here is where I would invest next.

If there is one thing that investors have learned over the last few years, it’s that safety comes first when it comes to investing. Rather than getting in on growth stocks that might topple over, it’s better to think of the long-term approach.

That’s why we’ve focused so much on taking advantage of Guaranteed Investment Certificate (GIC) rates right now, as well as other diversified investments. And that remains key! But what if you’ve done all this and now have a windfall of $10,000? With that in mind, here are some still safe long-term investments Canadian investors may want to consider.

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Emerging markets

Many Canadians tend to focus on Canadian stocks and products when it comes to investing. However, emerging markets can certainly provide you with a lot of returns over the long term. These offer significant growth potential compared to already-developed markets. And a great way to get into this is by investing through exchange-traded funds (ETFs).

For instance, Vanguard FTSE Emerging Markets All Cap Index ETF (TSX: VEE) is an excellent option to consider. It has the lowest management expense ratio (MER) among the emerging markets all-cap ETFs at 0.25% as of writing. What’s more, it offers a 2.77% dividend yield to consider as well.

The ETF seeks to focus on emerging markets, including all market capitalizations. This provides investors with exposure to regions with burgeoning middle classes, rapid urbanization, and increasing consumer spending.

Renewable energy infrastructure

Another are of growing interest is climate change initiatives, with the world over increasing the adoption of renewable energy. Therefore, investing in renewable energy infrastructure projects or companies involved with solar, wind, hydro, or nuclear power generation could be quite promising.

However, if you’re looking at one area over another, I would certainly consider Cameco (TSX: CCO) right now. Cameco stock is the world’s largest publicly traded uranium company. And while uranium and nuclear power may not be the only renewable energy product in the future, it’s the current product that will help us get to carbon neutralization.

With that in mind, Cameco stock remains a strong investment — especially with uranium demand so high. This has led to higher and higher spot prices, leading to a higher share price as well. Shares are now up 63% in the last month alone, and that kind of growth is likely to continue in the near future as well.

Cybersecurity

While there has certainly been a lot of focus on tech stocks, cybersecurity remains one of the top places investors can create a lot of cash flow. That’s because the demand remains so high! The increasing digitization of our world provides a paramount opportunity for cybersecurity. So, investing in companies that specialize in threat detection, encryption, or secure cloud services could capitalize on this trend.

And that trend isn’t going away anytime soon. While developed countries may be well digitized, emerging markets still need more access to the internet. And that creates even more opportunities for growth.

That’s why a global cybersecurity ETF like iShares Cybersecurity and Tech Index ETF USD (TSX: XHAK) is a potentially strong option. It provides exposure to some of the largest cybersecurity companies in the world, creating a diversified set of holdings with the click of a button. And what’s more, growth is now up 40% in the last year, with more likely on the way.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

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