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

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

78.11

-0.25 (0.32%)

as of Jul 17, 2026, 7:59:38 pm Market Open.

272 watching

Investor Insights

Jul 19, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

The BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB-T) has garnered a generally favorable view among experts, particularly for its strong exposure to the Canadian banking sector. With an MER of just 0.28%, it is recognized for its excellent long-term performance and robust dividends. While there are concerns about an impending economic slowdown in Canada that could impact the banks negatively, many analysts suggest it remains a sound investment option, particularly for long-term holders. Although some experts advise against adding new positions at this stage due to high valuations, they see potential for growth if bought on dips. The ETF's equal-weight approach gives investors balanced exposure to the Big Six Canadian banks, which are well-capitalized and positioned to benefit from global market trends.

Consensus

Hold

Valuation

Fair Value

Similar

TD,TD

TOP PICK

Banks are down 20%+. This is what he'd buy, without the covered call, because he wants the growth at this point. Yield is around 3.5%, instead of 6%, but he doesn't care as he wants the growth, and we're going to see that with the Canadian banks despite headwinds in terms of US real estate. Canadian banks have all kinds of buffers in place. Loan loss problems in Canada are actually pretty small.

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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.

Showing 31 to 45 of 181 entries

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)