BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)…

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

70.12

+0.41 (0.59%)

as of Jun 8, 2026, 7:59:58 pm Market Open.

274 watching

Investor Insights

Jun 7, 2026, 12:00 am

This summary was created by AI, based on 12 opinions in the last 12 months.

The BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB) has generally been viewed positively by various experts, who appreciate its exposure to well-capitalized Canadian banks that have demonstrated excellent performance and reliable dividends over the decades. While the ETF has benefited from a strong performance, with one investor noting almost a 50% gain, many experts express caution due to impending economic uncertainties, such as potential recessions and their impacts on bank performance. Experts recommend holding the ETF rather than selling, although they are hesitant to add new investments at this time due to high valuations. The sentiment leans towards long-term appreciation attributed to commodity cycles and resource sector growth, while simultaneously recognizing the challenges posed by economic conditions and real estate exposures. Overall, the consensus suggests a wait-and-see approach while acknowledging the ETF's strengths and potential future benefits.

Consensus

Hold

Valuation

High

Similar

RY,Toronto-Dominion

Premium content

It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

This renown ETF from BMO holds the big six banks (including National Bank) evenly. ZEB charges an 0.55% MER, but pays a 4.62% dividend. To compare, Royal Bank pays 4.39% and CIBC 6.05% on the high end. Its beta is a low, stable 0.84 and the PE stands at 9.57x. So, you're asking, why buy banks? Why buy them when they're down 10%? Why after they all just reported earnings misses and lowered their guidance? When they warned of increasing loan-loss provisions? When the economy faces a possible recession?

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

We would be quite comfortable owning Canadian banks today. The Canadian financial space continues to be one of the more robust across the globe, and their lending standards are considered to be quite high. While challenging economic events are putting downward pressure on earnings, we feel that an eventual turnaround in the macro outlook will be a benefit to these names down the road. Canadian banks continue to pay high dividend yields and have long track records of returning value to shareholders. While there may be some near-term or intermediate downward price pressure on these names, for an investor with a long-term timeframe, we would be comfortable owning the Canadian banks here.
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PARTIAL BUY

A Canadian bank ETF?

Banks now may not be star performers as in the last 30 years. Interest rates are rising now and could stay this way for a while. Loan loss provisions will increase in a weakening economy. But of this class, he likes ZEB and ZWB (a covered call one for income) which he prefers, because he expects banks to be sideways and the covered call will enhance returns. You could buy a combination of the two.

PAST TOP PICK

(A Top Pick Jan 24/23, Down 5%)

Canadian banks due well over long term.
Banking at top of cycle - as a result- banks not performing.
Financial sector concerns weighing on share price.
Hold on shares.

BUY

Big 6 Canadian banks in the coming year

Offer good value now. Multiples are still past book value, but not 2x+. Also, they pay attractive yields. Our banking system differs from the US which has many regionals. He owns individual banks, not ETFs.

BUY

Good way to get exposure on Canadian banks.
Relatively stable and defensive name.
Large banks are safe.
Not as much volatility.

TOP PICK

The banks pay high dividends and are in strong seasonality. The chart has been sideways since early 2022, but investors need a good place to hide, which is here. But if there's a recession, banks will underperform.

COMMENT

Has owned this in the past, but not now. Believes his team has a better than average ability to outperform by picking their favourite banks. See his Top Picks.

BUY

Allan Tong’s Discover Picks If the thought of tech makes you seasick, then stick to tried, true and seasonal investments. In Canada, this means banks and ZEB-T is the go-to ETF. ZEB holds the the Big Six banks equally, as the name implies, pays a 4.12% dividend yield and charges a 0.6% MER. Read 3 Momentum Stocks to Switch Out for our full analysis.

BUY

Holds the Canadian banks equally. Good if you don't want to buy a single bank. Gives great diversification at a low MER. Canadian banks are stable though we are in a high-inflation market which could make it challenging for banks in the short term, but fine in the long.

BUY

Macros winds should push ZEB stock higher. Given the fall in commodity prices (i.e. oil, copper), inflation appears to have peaked and market nerves are calming. Certainly, housing and the wider market are slowing down, but it’s no slam dunk that we are marching into a recession. Given these factors, the banks should continue to climb, as they traditionally in the second half of the year, according to seasonality. ZEB stock pays a 3.33% dividend yield, and charges an 0.6% MER. An alternative is to buy one of the stocks held in this basket, though it’s always a case of guessing which bank will come out on top in a given year. ZEB stock avoids that game. Read 3 Money Stocks to Beat Inflation for our full analysis.

BUY

Optimistic about future of Canadian banks. Recent market sell off doesn't affect underlying business. Strong banking system in Canada.

BUY ON WEAKNESS

A bit leery on the banks right now. Would be adding on weakness but currently a slight underperformer.

BUY

Canadian banks have always been a good investment. Don't see this changing now. From a trading perspective, should see a bounce soon to around $39 and then another drop. Can buy low and hold for 5 years. Dividends are probably going to continue to grow.

PAST TOP PICK

(A Top Pick Dec 23/21, Up 36%) Banks have done well and are getting close to the end of the seasonal period so there may be some weakness. Reducing exposure.

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

It's a Monthly Gems opinion which is available only for Stockchase Premium