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TSE:ZEB

BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

74.66
+0.42 (0.57%)
as of Jun 19, 2026, 7:59:59 pm Market Open.
141 watching
0
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.
TOP PICK
They cut the MER recently to 0.25%. It was too high before at 0.65%. Holds the six Canadian banks.
BUY
Banks have exposure to interest rate sensitive sectors. If there are growth shocks as well, banks will respond negatively. If there is a little bit of inflation, they might do okay. You will get a dividend from the bank and positive growth from Canada's economic growth.
HOLD

A reasonable holding, but better opportunities elsewhere. Canadian banks have an oligopoly and will continue to do well, but they're pricey compared to the world. Expectations are high. He'd be overweight the US banks through XLF, or the European banks through EUFN.

COMMENT

The profitability of banks is net interest margins. The steepening of the yield curve has led to banks being more profitable. A flattening yield curve is a headwind. We are not there yet. When the yield curve starts to flatten. ZEB is good to capture upside, and ZWB for when it will go sideways to down.

COMMENT
Different ways to play the Canadian banks. There is some volatility but there is yield to compensate.
PAST TOP PICK
(A Top Pick Mar 01/21, Up 9%) No bank exposure right now. Seasonally, starts to back off right about now, especially if interest rates do start to move down. Might be an uptick in August, with earnings. Best to wait until October to re-enter.
COMMENT

ZEB is equal weight where as ZWB is equal weight banks with a covered call overlay. When you think the markets will go sideways or down, covered calls will perform better. However, the covered call gives away some of the upside potential so if you are bullish on growth, forego the covered call.

BUY
You have credit risk for mortgages. Banks are well provisioned for credit losses, though these might be loosened shortly. The yield curve is steepening so in the short run, banks are more profitable. It's hard to say how much is priced in. Not early but if the yield curve remains steep, banks will do well over the next few years.
COMMENT
Viewer sought advice on allocating money from a GIC coming to term. Canadian banks are amongst the best in the world with stable dividends. There is little worry asides from the equity market risk. You could see draw downs like we saw with covid. You have to be able to not panic when it falls from $28 to $18.
TOP PICK
Canadian banks have performed really well recently. A lot has to do with rising interest rates. Canadian banks are unique. They are an oligopoly. If the market slips a bit here, Canadian banks can perform well.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Banks remain attractive, especially for their valuation and dividends. The banking sector rallied strongly in November but the ETF is still a fine buy. Unlock Premium - Try 5i Free

COMMENT

Canadian banks are much better run and offer good dividend yields compared to elsewhere in the world. There is some risk in the housing sector and some challenges to growth. He would favour ZWB right now. Once markets correct 10-15%, get out of the ZWB and get ZEB for the growth.

HOLD

There is still some economic risk, such as mortgage forbearance that has not hit Main Street yet. It's not his favourite area. The Canadian banks came back more than American ones so there is probably more value than other areas. As investors move from growth to value, banks could see some upside. Be cautious and he would prefer the ZWB to get into the Canadian banks.

COMMENT
Owns all the Canadian banks and you don't have to worry which one is going to lead. However, the US banks are also quite cheap relative to the Canadian banks.
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