BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)…

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

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74.66

+0.42 (0.57%)

as of Jun 19, 2026, 7:59:59 pm Market Open.

141 watching

BUY

Holds the Canadian banks equally. Good if you don't want to buy a single bank. Gives great diversification at a low MER. Canadian banks are stable though we are in a high-inflation market which could make it challenging for banks in the short term, but fine in the long.

BUY

Macros winds should push ZEB stock higher. Given the fall in commodity prices (i.e. oil, copper), inflation appears to have peaked and market nerves are calming. Certainly, housing and the wider market are slowing down, but it’s no slam dunk that we are marching into a recession. Given these factors, the banks should continue to climb, as they traditionally in the second half of the year, according to seasonality. ZEB stock pays a 3.33% dividend yield, and charges an 0.6% MER. An alternative is to buy one of the stocks held in this basket, though it’s always a case of guessing which bank will come out on top in a given year. ZEB stock avoids that game. Read 3 Money Stocks to Beat Inflation for our full analysis.

BUY

Optimistic about future of Canadian banks. Recent market sell off doesn't affect underlying business. Strong banking system in Canada.

BUY ON WEAKNESS

A bit leery on the banks right now. Would be adding on weakness but currently a slight underperformer.

BUY

Canadian banks have always been a good investment. Don't see this changing now. From a trading perspective, should see a bounce soon to around $39 and then another drop. Can buy low and hold for 5 years. Dividends are probably going to continue to grow.

PAST TOP PICK

(A Top Pick Dec 23/21, Up 36%) Banks have done well and are getting close to the end of the seasonal period so there may be some weakness. Reducing exposure.

BUY

Once you get liquidity issues, ie. no buyers, the price of bonds can drop really fast. So he sold his long bond ETFs. Instead, he bought ZEB as a bond substitute, which holds all 6 Canadian banks. Its MER used to be too high for him, but they recently chopped it to 25 bps, so he bought. But see his Top Picks for a bond ETF.

COMMENT

For active investments with covered calls, you need to think about what type of exposure you want. Consider the different types of exposures to Canadian banks. It is not early, so would not be adding new money. However, he is overweight and thematically, it is good. Good on a relative basis.

BUY

Allan Tong’s Discover Picks BMO's Equal-Weight Banks ETF, outperformed ZFN last year by 2%. As the name suggests, ZEB holds the big six banks more or less equally. It charges an MER similar to ZFN's at 0.6%, but pays a higher dividend of 3.33%. Volumes are more robust at an average of 612,000. And like XFN, ZEB is currently trading at 52-week highs. Read Best Financial Stocks in 2022 for our full analysis.

TOP PICK

Strategic positioning, rather than buying individual names, since he might be in the sector for only 3 months or so. Seasonality from October to end of December, and also from mid-January to April. He's overweight Canadian banks at this time. They've been performing well, as they do when markets are volatile. Will do well if rates go up. Sweet spot. Yield as a group is about 4%.

HOLD

Domestically, he doesn't generally use ETFs, saving those for foreign exposure instead. Overall, banks are good to be in right now, given world uncertainties. Rules being relaxed means share buybacks and dividend increases. Earnings potential over the next year will stall out, until the economy gets more settled. Prime area to hold for safety.

COMMENT

Question on underlying dividend increase. ZEB yields will rise with dividend increases from the underlying stocks. For ZWB, the dividend increase will increase yield, but much of the performance comes from the volatility and the premium.

BUY

ZEB vs. ZWB He prefers ZEB, with a lower management fee. ZWB has a higher yield at 5%, instead of 3.1%. ZEB has outperformed the covered call strategy. You want to own the underlying securities without being called out. Covered call strategy works better in a sideways or downwards market. But if the the market's falling, you probably don't want to own either.

WAIT

The banking sector in Canada is always attractive. You can buy on tips. Does not have a preference on banks. An equal weight or individual purchase of banks is fine. Has started lightening in NA banks and started adding to Brazilian and Indian bank names. Wait for a pullback before adding to Canadian banks.

BUY

Has seen massive flow into this fund. 28 basis points. You could do it, but it is also religiously managed. With an inflationary framework, it should benefit the Canadian banks. Hard to argue against banks. Going forward, could we see deflationary pressures? Yes. The tech revolution, debt and demographics are deflationary.

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