Where to Invest $10,000 in November 2023

Investors can easily diversify through this ETF and earn passive income on established global brands on another.

| More on:

Researching individual stocks to buy now can be time consuming. Investors looking to deploy new capital into the market in November have a lot to chew on this earnings season. Unless one has a high-conviction investment idea gleaned from a crystal ball, uncertainty and the fear of making the wrong investment decision could potentially paralyze an individual. However, you still have to save and invest in something to secure your financial future.

I will touch on two potential investment options Canadian individuals could consider when deciding on where to invest new money before the close of 2023.

Before we get into what to buy in November 2023, consider the necessity of diversifying your holdings across several assets, and asset classes. No single stock or economic sector’s unexpectedly poor performance during your investment horizon should derail your progress toward attaining personal investment goals.

How to invest $10,000 right now

If you have $10,000 available to invest this month, and this amount is material to your future financial well-being (it is to me), you should seriously consider diversifying your investments into several holdings of different assets from various asset classes.

The 60:40 portfolio is increasingly coming back in investment asset-allocation strategies for individuals post the vagaries of 2022. Fixed-income securities like bonds and short-term Guaranteed Investment Certificates (GICs) currently offer more juicy yields than they did during the past low interest rate regimes. Meanwhile, Canadian and international stocks are still as volatile as usual in 2023. Real estate investment trusts (REITs) remain largely beaten down, and yields look bloated right now. Investors are spoilt for choice.

That said, researching individual stocks and REITs could be time consuming, and consistently monitoring each position is even more demanding. Diversified exchange-traded funds (ETFs) come in handy. If you have no high-conviction idea, limited time to do your own research, and you do not belong to an investing group where dedicated analysts spend hours digging into corporate reports and filings, investing through ETFs could be your low-cost investment and diversifying option.

Two Canadian ETFs stand out today: Harvest Brand Leaders Plus Income ETF (TSX:HBF.B) and Vanguard Growth ETF Portfolio (TSX:VGRO).

One Canadian ETF to buy for top brands exposure and passive income

The Harvest Brands Leaders Plus Income ETF invests in an equally weighted portfolio of 20 of the most successful global brands and can pay you handsome passive income every month. The fund has more than $417 million in assets under management and deploys its capital buying stocks of stable, well-established U.S. large-cap businesses with leading market share positions in their given market verticals.

The ETF’s primary holdings have low business risk, and the recent news of slowing inflation in the United States could uplift investor spirits into 2024, lifting valuations higher. The ETF touts an average return on equity of 44.1% over the past five years.

Most noteworthy, HBF amplifies the dividend income from the portfolio by selling some derivatives (covered calls) to augment portfolio income. As a result, it pays monthly distributions that yield 7.8% annually. It’s an actively managed ETF that pays handsome income, and a management expense ratio (MER) of 0.93% looks justifiable.

Grow and diversify with the Vanguard Growth ETF Portfolio

The Vanguard Growth ETF Portfolio provides investors with a diversified portfolio of portfolios. The ETF essentially invests more than $4 billion of its net assets into several other Vanguard ETFs, offering investors a widely diversified portfolio of stocks and bonds.

The ETF provides 80% allocation to stocks and a 20% allocation to bonds. Further, investors gain access to returns on U.S. and Canadian stocks and bonds and a small (5.6%) exposure to emerging markets. Diversification is wide, and the fund has a low MER of 0.24% annually — it offers cheap access to diversified investment returns all at once.

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 Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

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 »