Where to invest $20,000 in ASX 200 shares today

If you've got $20,000 to invest in ASX 200 shares, here are a few of the top companies I'm watching in the current market.

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It's been a wild ride for ASX 200 shares in 2020 as the S&P/ASX 200 Index (ASX: XJO) has gone from bull to bear to bull again.

So if you've got $20,000 burning a hole in your pocket right now, here's a couple of investment ideas to get you started.

asx share price represented by bear and bull colliding over man holding an umbrella

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Where to invest $20,000 in ASX 200 shares today

I like the look of large-cap dividend shares right now. That means BHP Group Ltd (ASX: BHP) shares could be in the buy zone for me.

The resources sector could be set to boom in the next year or so. Governments are looking to kickstart their economies and infrastructure is a great way to do that. That means steel (and iron ore) could be in high demand which is good for BHP earnings.

If you're not bullish on BHP, there are other ASX 200 shares I like right now. I think AGL Energy Limited (ASX: AGL) could offer defensive exposure which is valuable in the current market.

AGL shares have fallen sharply in 2020 and still offer a solid dividend yield. While I wouldn't bank on dividend yields ahead of the August reporting season, I think AGL is well-placed in the Aussie energy market.

There are some headwinds, like lower corporate energy use, but higher residential consumption could help to offset that. If you're buying for the long-term, I think AGL could also be a major renewables player in the next decade or so.

Finally, I think Telstra Corporation Ltd (ASX: TLS) is another ASX 200 share worth watching. There are certainly challenges facing Telstra this year but we could see the 5G network push accelerated.

More working from home means more reliance on network infrastructure. That could be good news for Telstra as it looks to re-shape itself and re-define its strategy for the decades ahead.

Foolish takeaway

These are just a few of the ASX 200 shares that I like the look of right now. If you have $20,000 to invest, it might be wise to focus on portfolio construction.

No two scenarios are the same which means you have to create a portfolio that suits your needs and investment horizon.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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