BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

With this you are buying a straight up ownership interest in the major 6 banks and you receive the dividend payment. A very simple ETF with no financial engineering.

Banks. Equally weighted. ZWB-T has the covered call overlay as he thinks the banks will not do much for the next while. Prefers ZWB-T.

(Top Pick Oct 2/13, Up 24.09%) It is going to be very close to financials in general. It outperformed the TSX. There is still no sign of a top.

Equally weighted bank ETF. ZEB-T is the better way to get in. He would be patient until this ETF gets to the $21 area because he expects a pull back. Step aside. There is lots of volatility short term.

Stock vs. Stock: ZEB or ZWB. Dividends have been rising over the last couple of years compared with ZWB because its covered call strategy is responding to reduced volatility and impacting the dividend.

Would you choose one of the 6 banks or would you choose the ETF to put in your portfolio? If you are a believer that the number of times around the track you go, banks end up pretty much similarly. This is a great vehicle to own. For the long-term, he has placed his bets on Royal (RY-T), Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T).

ZWB is a covered call and good for income. ZEB is good for growth. Banks are in good shape and he doesn’t have a problem here.

Equal weight product. A good product but if you are going to buy all 5 banks then just do that. Doesn’t think the banks are done so there is no worry about them at present.

Have all 6 banks equally weighted. A good product. You can do options on it from time to time. A good way to play the banking sector. 3%+ yield. He is fine with it. Prefers ZWB because of the covered calls.

Most of the banks are just breaking out above the pre-crisis highs. If this is just the beginning of the breakout, there is a ways to go yet and you might as well be there.

Is in the area of recent highs so not attractive. Thinks in the next 3 to 6 months there will be a pull back in banks.

(A Top Pick July 8/13. Up 6.35%.) Sold his holdings at $19 but would like to pick it up again at $18 an old support level. There is a better seasonal pattern to play coming up. It is typically anywhere from the end of August to around October when the banks start to sell off and become attractive. You can then hold them right through until the spring.

(Top Pick Sep 21/12, Up 12.09%) He is still a fan. Interest rate environment favours the banks.

Usually around this time of the year, between July and August, he will buy into the banks. They have a tendency to pull back until the summer. They tend to move between late summer and Christmas as far as a seasonal trend goes. There is also a certain amount of support that comes in at around $17.

Has a good dividend yield but you are not going to get a lot of growth. Thinks there is a spot in portfolios for bank stocks and if we are looking at a downturn in the market place, he would rather own the ETFs rather than individual banks because the risk is a lot less.