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Where I’d invest $10,000 in ASX shares today

If I had a spare $10,000, my first thoughts regarding its use would be to top up my ASX share portfolio.

Although the sharemarket is at all-time highs (which means a higher risk to future returns), there’s really no alternative if I want a decent return on capital (which I do). Bank accounts and term deposits are safer, but today these kinds of investments are yielding less than inflation in most cases.

So here’s where I would like my $10,000 to go instead.

CSL Limited (ASX: CSL)

CSL is the largest healthcare company on the ASX and has made a name for itself in the blood diseases and vaccinations sector. With a world-leading R&D department, I’m very confident this company will continue to benefit from the ageing but increasingly affluent populations around the advanced economies of the world.

CSL has been one of the best performing ASX shares to own over the past decade and looks set to break the $300 per share mark for the first time in the near future. I would have no problems having this company in my portfolio as a long-term hold.

Xero Limited (ASX: XRO)

Another stand-out performer over the last 10 years has been this online accounting software kingpin. Xero shares coincidentally have printed a new all-time high of $85.04 just this morning, but I still think a company boasting the kind of growth rates that Xero is pumping out deserves a high valuation.

Although I’m mildly concerned that competition for Xero will ratchet up over the next few years – especially from US rival Intuit Inc. – I think Xero’s ‘beautiful’ products still offer a compelling alternative. Thus, as a cloud-based growth stock, I still think Xero is a pretty good bet.

iShares Global 100 ETF (ASX: IOO)

iShares Global 100 is an exchange traded fund (ETF) that simply invests in the largest 100 companies on the planet. With the ASX charging ahead, it might be a good time to increase your international exposure and I think IOO is a great vehicle to do so. It’s hard to argue with the appeal of indirectly owning stocks like Apple, Microsoft, Alphabet (Google), JPMorgan Chase and Johnson & Johnson – all in one easy fund. Consequently, if I had $10,000 to invest, this ETF would be high on my list.

Foolish takeaway

I think any (or all) of these 3 ASX shares would be great candidates for a fresh $10,000 investment in the sharemarket today. Yes, shares are expensive at the moment, but there are no real alternatives for decent yield in today’s current interest rate environment.

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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Intuit. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.

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