Daniel StrausEvolve Canadian Banks and Lifecos Yield Index FundBANK.TOCOMMENTMay 08, 2025
Holds both banks and lifecos, so a broader basket than ZEB. Light leverage at 1.25x (adds risk), so it amplifies the upside as well as the downside. Gives you a bit of a long-term chance of outperforming a bit, especially if markets go up in the very long term.
Good if you want to make a macro call on rising rates, which is like the bread and butter of financial markets. His strategists are calling for rates to go the other way if there's a recession, and this ETF will participate in that.
Disclosure: Includes National Bank, which is where he works.
BANK-T vs. ZUB-T. Exposure to US or International banks. The yield curve is telling us we are headed toward a recession 6 to 18 months out. The yield curve is flattening so banks’ net interest margins will not improve. He does not want to chase them here.
Holds both banks and lifecos, so a broader basket than ZEB. Light leverage at 1.25x (adds risk), so it amplifies the upside as well as the downside. Gives you a bit of a long-term chance of outperforming a bit, especially if markets go up in the very long term.
Good if you want to make a macro call on rising rates, which is like the bread and butter of financial markets. His strategists are calling for rates to go the other way if there's a recession, and this ETF will participate in that.
Disclosure: Includes National Bank, which is where he works.