The best investments in Canada for 2024
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Discover the methodology2024 should be an interesting year for many types of investments, thanks to the gradual recovery of the financial markets and the economy more generally.
But which investments will pay off in 2024 Which investments are a sure bet?
If you're not sure what to invest your money in this year, keep reading below for the best investments today. See where the market is heading and get advice on which investments best match your needs.
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Keep in mind
Best investments 2022: what to remember
- Stocks, cryptocurrencies and mutual funds may be volatile in 2024, but may offer some attractive growth opportunities
- Investments in real estate, ETFs and income trusts are less profitable, but safer.
- An investment in gold is an attractive hedge against inflation.
- A financial advisor can help you find the best investment.
What are the best investments for 2024?
Below is a table showing some of the best investments to consider in 2024:
| Investment | Return in 2021 | Return in 2022 |
|---|---|---|
| Stocks | 25.1% (S&P 500/TSX Index) | 7.7% (S&P 500/TSX Index) |
| ETFs | 12% on average | 13% on average |
| Mutual funds | 6.5% average | 7.59% average |
| Real estate | 24% | 18% |
| Crypto-currencies | Variable | Variable |
| Gold | 4.3% | 6% |
| Income trusts | 6.4% | 5.8% |
Among the investment solutions that could bring you money in 2024, these are among the most interesting financial products:
What are the best guaranteed investments?
If you are a cautious investor, a guaranteed return is possible with certain products, such as GICs and MLGIs. These investments offer a significant advantage, a guarantee of how much you will make by investing thanks to their fixed rates of return.
- GICs or Guaranteed Investment Certificates: These are the only savings products that offer both a guarantee on the capital and the interest. Their final return is therefore known in advance.
- MLGIs or market-linked investments: these investments are variable and linked to stock market growth. They are unique among stock market-related investments in that they are guaranteed. Enjoy security, returns and flexibility all in one. Your capital is always guaranteed at maturity and you can generally choose between a guaranteed fixed return or a variable return.
Before investing in these guaranteed investments, get recommendations from our financial advisors.
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What are the best ways to invest online?
There are many investments available to everyone online. Particularly attractive ways to invest include:
- Online brokers: by going through an online broker, you can carry out your stock market operations on your own and invest in stocks, investment funds or bonds.
- Crypto-currency platforms: these platforms are specific to investing in crypto-currencies and sometimes offer crypto staking.
- The best ETFs: for 2022 and beyond, the most promising ETFs are BMO US Preferred Share Index ETF, Vanguard Retirement Income ETF, Desjardins Disnat IR Canada Low Co2 Index ETF, RBC iShares S&P/TSX Capped Energy Index ETF and National Bank Indc Mstar BanqNatl Qbc CI ETF.
- The best mutual funds: The best mutual funds currently offered are the following: RBC Mutual Funds, TD Mutual Funds, Desjardins Mutual Funds, Industrial Alliance Mutual Funds, CIBC Mutual Funds and Royal Bank Mutual Funds.
- Robo-advisors: finally, if you want to invest online in an automated way, you can use a robo-advisor that will build and manage an ETF portfolio for you.
How can I invest better in 2024?
To make profitable and interesting investments in 2024, you have several options, including:
- Make your investments on your own with an online broker
- Use a robo-advisor to make automated ETF investments
- Use the services of a financial or investment advisor
Should I invest in stocks in 2024?
Below is a table highlighting the characteristics and level of stock investment in 2024.
| Characteristics | Level |
|---|---|
| Investor profile | Balanced or aggressive |
| Time frame | Medium or long-term |
| Risk | Moderate |
| Return | Average |
Stocks remain one of the best long-term investments to make in 2022 if you are looking for an attractive return. There are many advantages to investing in stocks, including:
- Tax-advantaged if you invest in Canadian stocks
- Interesting growth over the medium and long term
- The choice between yield and performance strategies
The stocks of certain sectors are particularly worth watching. This is especially true of the technology, health care, real estate and cannabis sectors, which are currently experiencing significant growth. Depending on your strategy, you may find interesting stocks to add to your portfolio.
The performance of the best stocks
If you opt for a return strategy, you can buy the following stocks that pay a stable and regular dividend:
- Fortis stock: whose dividend currently has a return of 3.67% with a payout ratio of 73%.
- Canadian Tire stock: this major retailer has a 16-year dividend history with a current return of 2.36%.
- RBC stock: although it has suspended the increase of its dividend which offers a current return of 3.59% due to the current crisis, it should again offer an interesting return in the future.
- Manulife Financial Corporation: this insurance company has a payout ratio of 42% which will allow it to increase its dividend for a long time.
- Canadian Natural Resource stock: this energy giant currently offers a dividend return of 4.5% despite a high payout ratio of over 90%.
The following stocks have performed strongly in recent years:
Investing in ETFs in 2024: Is it a good idea?
| Characteristics | Level |
|---|---|
| Investor profile | Balanced |
| Investment horizon | Medium-term |
| Risk | Medium |
| Return | Low to medium |
Exchange-traded funds, or ETFs, are among the most popular investment tools for investors in 2024. They are relatively new to the market and represent investment solutions that are less volatile and therefore less profitable than certain stocks on the stock market, but which nevertheless offer good diversification and security.
How do ETFs work?
- They allow you to bet on the performance of a basket of stocks
- Their management fees are among the lowest on the market because they are passively managed
- The risk of ETFs is lower than that of stocks
The ETFs to watch in 2024 according to analysts are the following:
| ETF | Composition | Management fees | 1-year return |
|---|---|---|---|
| ARK Innovation | U.S. Small and Mid-Cap Equity | 0.75% | 35.73% |
| Vanguard S&P 500 ETF | U.S. Equities | 0.08% | 31.05% |
| Vanguard FTSE Canada All Cap Index ETF | Canadian Equity | 0.21% | 25.82% |
| iShares Core S&P/TSX Capped Composite ETF | Canadian Equity | 0.06% | 24.88% |
| Vanguard S&P 50 ETF (USD) | U.S. Equities | 0.08% | 22.56% |
| FINB BMO S&P 500 (CAD) | U.S. Equities | 0.09% | 15.67% |
| iShares S&P/TSX 60 ETF | Canadian Equity | 0.18% | 14.90% |
| Vanguard ETF Growth Portfolio | Global Balanced Equity | 0.24% | 11.37% |
| Vanguard ETF Balanced Portfolio | Global Balanced Equity | 0.24% | 7.26% |
| iShares Core Balanced Portfolio ETF | Global Balanced Equity | 0.20% | 6.10% |
Should you still invest in mutual funds?
| Characteristics | Level |
|---|---|
| Investor profile | Balanced |
| Investment horizon | Medium-term |
| Risk | Moderate |
| Return | Low to medium |
In addition to ETFs, another way to diversify your investments in 2024 is through mutual funds. Mutual funds offer the following advantages:
- They allow you to invest money in a portfolio of securities diversified according to each investor's profile.
- Mutual funds are managed by financial professionals who find the best stocks to invest in and actively manage them according to market trends.
- Mutual funds can be sold at any time thanks to their high liquidity.
Is real estate investment still profitable in 2024?
| Characteristics | Level |
|---|---|
| Investor profile | Conservative |
| Investment horizon | Long-term |
| Risk | Medium |
| Return | Low to medium |
Real estate investment remains one of the most popular investment methods for individuals in 2022. This type of investment has many advantages including:
- An accessible investment: despite the current rise in real estate prices, it is possible to buy a property with a relatively low initial investment and by using a mortgage loan.
- A regular return: generate a recurring income through rental payments.
- Tax advantages: certain expenses related to maintenance and work carried out in a rental property can be deducted from taxes, which represents a definite advantage as an investment.
- Different ways to invest: you don't have to buy a property to take advantage of this booming market. Other solutions are available to you, such as real estate investment trusts or exchange-traded funds.
Is investing your money in cryptocurrencies a good idea in 2024?
| Characteristics | Level |
|---|---|
| Investor profile | Aggressive |
| Investment horizon | Medium-term |
| Risk | High |
| Return | Medium to high |
Cryptocurrencies remain an interesting investment for investors looking for quick and large gains. Of course, the volatility of this market also represents a significant risk. This type of investment will therefore be reserved for investors with a high tolerance for risk and speculation.
Some cryptocurrencies have earned investors impressive profits in recent years. There are different ways to invest in these digital currencies that are considered the future of global finance:
- Buying and selling cryptocurrencies aiming to make a capital gain.
- Staking cryptocurrencies that pay you for locking in your cryptocurrencies.
- Stablecoins that replicate the performance of an underlying asset.
If you want to start investing, compare the best cryptocurrency trading platforms with our online tool.
Is investing in gold a good idea in 2024?
| Characteristics | Level |
|---|---|
| Investor profile | Conservative |
| Investment horizon | Long-term |
| Risk | Medium |
| Return | Medium to high |
An investment in gold remains is an effective way to protect your savings from the risks of inflation. This is preferably a long-term investment, which is possible through the purchase of physical gold but most commonly through gold contracts, which are less restrictive and just as interesting.
In forecasts for gold in 2022, several analysts predict that the price of an ounce of gold will rise in the coming months and beyond. In 2023, according to these analysts, the ounce of gold could reach $1,900, and other scenarios even forecast it reaching the strategic threshold of $2,000.
Gold should indeed benefit from several elements in favour of a rise in its price, including:
- A slowdown in global economic growth
- An increase in inflation
- A still anxious context following the health crisis
- Asian demand which continues to grow
Why invest in income trusts in 2024?
| Characteristics | Level |
|---|---|
| Investor profile | Balanced |
| Investment horizon | Medium to long term |
| Risk | Moderate to high |
| Return | Medium |
An income trust is an investment fund that manages assets and makes regular payouts to its unitholders or shareholders. By investing in an income trust, you will receive a dividend in exchange for paying taxes on the profits. In return for this payment, you often receive a higher return than with other securities.
Of course, the trust units can be sold at any time, even if the market is illiquid.
The different types of income trusts you can invest in 2024 are:
- Royalty trusts are energy-related companies.
- Real estate investment trusts or REITs are trusts that own or operate income-producing real estate.
- Utility companies are companies in the energy, pipeline and telecommunications sectors.
- Business investment trusts that have a strong and stable cash flow sell trust units rather than shares.
How do you choose the right investment for you in 2024?
Finding the best investment for your money in 2022 requires asking yourself a few questions beforehand. As you may have noticed, the levels of risk and return differ greatly from one product to another. The main elements to take into account before investing are the liquidity of the investment, its degree of risk and its potential return.
First of all, the liquidity of investment refers to the speed and ease of getting out of the investment and recovering your capital. Before choosing an investment, it is, therefore, necessary to consider its expected duration.
The more liquid an investment is, the faster it will be possible to withdraw your capital. In addition to the liquidity of the assets or instruments used for the investments, it should also be remembered that certain investment accounts, like most savings vehicles, do not allow for the withdrawal of capital before a predetermined deadline.
The risk corresponds to the possibility of obtaining a lower return than that hoped for at the outset or even of suffering partial or total losses of the sums invested. The level of risk is correlated to the level of return of each investment. The more profitable an investment is, the higher its risk level will be.
The choice of the risk level of an investment will depend on the investor's profile and risk tolerance and investment goals.
Finally, of course, you should also choose your investments based on the expected return. The profits made through the investments mentioned here can take several forms, including:
- Interest: this is the payment received by the investor in exchange for a loan of money such as a guaranteed investment certificate or a bond.
- Dividends: this is a portion of a company's profits that are distributed to shareholders. This includes stock market shares and trusts.
- Capital gains or losses: this is the difference in price between the purchase price and the sale price of a financial asset such as a stock, a unit of a mutual fund or trust or a crypto-currency.
- Other income: other types of income can also be generated by certain investments such as real estate investments with rents.
