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

construction workers talk on the job site
Energy Stocks

Best Stock to Buy Right Now: Baytex vs Suncor?

Suncor and Baytex stocks both look like solid companies offering growth and dividends. But which is the better buy?

Read more »

profit rises over time
Top TSX Stocks

3 Reasons to Buy Enbridge Like There’s No Tomorrow

Have you considered buying Enbridge (TSX:ENB)? Here are 3 reasons to buy Enbridge today for lasting growth and income.

Read more »

An investor uses a tablet
Stocks for Beginners

If I Could Only Buy 2 Stocks in the Last Half of 2024, I’d Pick These

I’m looking to buy two stocks over the next month. Here’s a look at my picks and why you should…

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »

grow money, wealth build
Dividend Stocks

3 Top High-Yield Stocks to Buy in November

If you want passive income, high yield dividend stocks are the clear choice. These are the best, and safest, out…

Read more »

Stocks for Beginners

Where will Loblaw Stock be in 5 Years?

Want a great food stock that can provide growth and income? Here's why Loblaw stock can offer that and more.

Read more »