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Where I would spend $10,000 on ASX shares today

Sebastian Bowen
where to invest

With the S&P/ASX200 (Index: ^AXJO)(ASX: XJO) index a hair’s breadth away from breaking its all-time record high today, it might be a good time to consider where any spare cash you have lying around might serve you best.

Investing in ASX shares can be risky in the short-term, but history tells us that stock markets tend to go up over the long-run. Therefore, any cash you have sitting in the bank (earning nothing) might be better off deployed into some ASX shares today.

So here are 3 shares I would consider buying if I had an extra $10,000 to burn.

Telstra Corporation Ltd (ASX: TLS)

I think Telstra is a solid stock pick to consider today, especially after the telco released some updated guidance at its investor event this morning. Telstra reaffirmed its FY20 guidance on earnings and reported that its T22 cost-cutting strategy is on track to net a $2.5 billion reduction in fixed expenses.

That means more money for shareholders and less pressure on Telstra’s dividend, which on today’s prices is worth a fully-franked 4.3% yield. Thus, I think Telstra is a top buy today for income and maybe even some 5G-fuelled growth down the road.

Xero Limited (ASX: XRO)

Xero shares have been exploding recently, breaching the $80 mark just yesterday for the first time. XRO shares are up over 21% in the last month alone as investors fight to get a slice of the action on this stock.

Xero has continued to impress investors with its 32% revenue growth rates and almost non-existent customer churn. Xero remains one of the best shares on the ASX in my opinion, and you could do worse than taking a look at XRO shares today.

Vanguard Australian Shares Index ETF (ASX: VAS)

With the markets surging and many stocks sitting at record highs, it might be a good idea to invest in a broad market index fund like VAS. Higher stock prices do tend to mean higher levels of risk, so diversifying your portfolio with an ASX 300 ETF is (in my opinion) a prudent way to invest in such times.

With VAS, you are getting a basket of the top 300 ASX companies and a trailing yield of around 4.03% – not a bad way to spend some cash, in my view. So if you don’t have a ‘passive’ investment like VAS, today might be a good time to explore this further.

Foolish takeaway

With these 3 ASX shares, I think we have 3 investments that could return a lot of value in today’s market. Stock prices are high across the board though, so bear that in mind if you’re looking at buying more shares today.

The post Where I would spend $10,000 on ASX shares today appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019