Stock price when the opinion was issued
Canadian financials have actually underperformed year to date. It depends on what energy is going to do. This won’t be a wildly underperformer or outperformer. If the market were to pull way, way back, he thinks the banks will outperform by going down less. He prefers cherry picking insurers and banks and hopefully outperform the ETF by a couple of percents if you get them right.
Don’t use it. It is broad financials. Insurance companies will be impaired for a number of years. If you want banks go with ZEB-T, but don’t buy it here.
This one is fairly deep. It has banks but also has other financial assets. If the rates are starting to rise a little bit, it is initially good for the banks because they make more money on the spreads. If you own, you might be better to move away from this and into equal weight banks, such as BMO Equal Weight Bank (ZEB-T). If rates start rising over the next 6-9 months, the banks will benefit.