BMO Equal Weight US Banks ETF (ZBK.TO)

Not hedged, but you could use BMO Equal Weight US Banks Hedged to CAD (ZUB-T). This is your choice. The thesis is that as interest rates start humping up, you want to be in the banking sector as their margins will improve. As margins improve, credit quality gets better. Thinks the economy is stronger than a lot of people think, and that the banks are going to lead that.

Gives you un-hedged exposure to US Banks, equally weighted.

Over the near term, there is a little bit left on the Cdn$ falling and the US$ climbing. This is probably not a bad idea as you will probably get a little more upside on the dollar trade. However, at some point over the summer, you are probably going to see a flattening of the Cdn$ and it won’t continue to trend down. If oil starts to rally, the dollar will follow, which could be negative for this position.

BMO Eq Wt US Banks Hedged CAD (ZUB-T) or BMO Equal Weight US Banks (ZBK-T)? Thinks the US banks will probably do pretty good here. US housing is still increasing and US banks is a great way to play that. ZUB would definitely be the way to play it. Regarding hedging, trying to predict currencies is darn near impossible.