BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

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.

(A Top Pick Sept 21/12. Up 9.74%.) This one will still go higher. The extra shot that will keep the banks working higher is if the rates start to edge a bit higher.

If you like this sector, this is a good way to go. He is currently slightly underweight banks.

Buy the sector when it makes sense. Get them equally weighted. He is a big fan of equal weighting.

(A Top Pick Oct 31/12. Up 4.82%.) He was in this basically since the beginning of October. This one has 2 seasonal positions and he sold his initial position on December 31. Stepped back in Jan 23^rd but it then broke its upward trend line shortly after and he sold his position.