So, you’re starting to invest in the stock market and have no idea where to begin. Considering how scary some of the news can be and how volatile the market can get, it’s understandable to find it a bit daunting.
For the uninitiated, the market can be overwhelming, and it can be difficult to understand where to put your money to work in the market for sizable returns. As a beginner, I don’t think you should worry about shoveling cash you cannot afford to lose into high-risk investments.
The key to success as a beginner is to first focus on building a well-balanced portfolio. Once you become more familiar with the market and how it works, you can consider dipping your toes in riskier investments.
If I started investing in the stock market today, here are the four picks I would consider to set up a solid foundation for my self-directed investment portfolio.
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The ETF I would buy
Investing in the stock market doesn’t necessarily mean investing only in stocks. I would start with an investment that gives me a one-ticket method to diversify into several assets: an exchange-traded fund (ETF). An ETF essentially pools a group of various securities, which may include stocks, into a singular fund. Instead of creating a group of such securities yourself, you can invest in the group through the ETF, and it trades like an individual stock on an exchange.
iShares MSCI USA Quality Factor ETF (TSX: XQLT) can be an excellent fit here. The one-ticket investment has a $205.19 million market capitalization at the time of writing. Investing in XQLT means you are getting exposure to a portfolio of high-quality large- and mid-cap stocks based in the United States. As of October 2025, XQLT’s one-year total returns are 8.92%, including dividends that it pays at an annualized 0.655% yield.
While the fund doesn’t offer high-yielding returns, it has a reputation for a high return on equity (ROE), lower leverage, and stable earnings. It is a growth-focused investment that can become a good core holding for a beginner’s portfolio. I’d allocate around 40% of my investment capital to XQLT for the diversity, stability, and long-term growth it offers.
The stocks I would consider
Then, there are three staple TSX stocks: Royal Bank of Canada (TSX: RY), Fortis (TSX: FTS), and Nutrien (TSX: NTR).
RY is the largest stock on the TSX, with a $286.90 billion market capitalization. It is the biggest among Canada’s Big Six banks. The diversified financial services company is a solid blue-chip stock that finds a place in most investor portfolios. It offers reliable dividends, is well-capitalized, and has a solid business model.
Fortis is a utility giant, boasting a 51-year streak of dividend growth. The $36.55 billion market-cap stock offers a 3.40% dividend yield. Its essential services, reliable business model, and virtually guaranteed dividends make it an excellent alternative to fixed-income assets like Guaranteed Investment Certificates.
Nutrien is a $38.52 billion market-cap producer of fertilizer. It is the largest fertilizer producer by capacity worldwide. Catering to the rising food demand across the world, it is an essential business. It also boasts a 3.78% dividend yield that you can lock into your portfolio at current levels.
Foolish takeaway
There’s never a one-size-fits-all solution to stock market investing. What I’ve discussed is how I would go about it if I started investing today, but it could just as easily be completely different for you once you get into it.
As you start, I would also suggest allocating a portion of your available contribution room in a Tax-Free Savings Account to make a self-directed portfolio. This way, you can enjoy the returns from your investments without incurring taxes on dividends and capital gains.
