It can be hard to know where to invest $5,000 in ASX 200 shares right now. The S&P/ASX 200 Index (ASX: XJO) is down 20.41% since the start of the year and this volatility is continuing into May.
The Aussie banks are under pressure amid a soft earnings season with National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) trading heavily right now.
Here's where I'd be investing a spare $5,000 in ASX 200 shares today.
Where to invest $5,000 in ASX 200 shares today
Let's start with those dividend-seeking Fools. Investing in ASX dividend shares is a solid long-term strategy that can build your portfolio value and deliver a passive income stream in retirement.
I like the looks of Fortescue Metals Group Limited (ASX: FMG) and Woolworths Group Ltd (ASX: WOW).
Fortescue is a leading iron ore miner and is trading at a P/E ratio of just 4.34 times right now. With a dividend yield of 9.27% right now, Fortescue could be a bargain buy today.
That being said, I think Woolworths could be a safer dividend buy than Fortescue right now. Woolworths shares are yielding a lower 2.92% right now but I think the retailer's defensive earnings could be helpful in the current environment.
If you prefer to invest in ASX 200 growth shares, I like the look of Xero Limited (ASX: XRO) or NextDC Ltd (ASX: NXT) shares.
The Xero share price is down 0.89% in 2020 but that's still a big outperformance over the ASX 200. Xero's software-as-a-service (SaaS) business model and cloud accounting platform could help the company to weather the current coronavirus storm.
NextDC shares have been rocketing higher in 2020 but could be a good long-term buy. If you're holding for decades to come, I think NextDC's data storage and security services could be in high demand.
Foolish takeaway
I think $5,000 invested in a mix of these ASX 200 growth and dividend shares could do well in the coming decades. Of course, there are many ways to find undervalued shares right now.
