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

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

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70.12

+0.41 (0.59%)

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

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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

BUY

Once you get liquidity issues, ie. no buyers, the price of bonds can drop really fast. So he sold his long bond ETFs. Instead, he bought ZEB as a bond substitute, which holds all 6 Canadian banks. Its MER used to be too high for him, but they recently chopped it to 25 bps, so he bought. But see his Top Picks for a bond ETF.

COMMENT

For active investments with covered calls, you need to think about what type of exposure you want. Consider the different types of exposures to Canadian banks. It is not early, so would not be adding new money. However, he is overweight and thematically, it is good. Good on a relative basis.

BUY

Allan Tong’s Discover Picks BMO's Equal-Weight Banks ETF, outperformed ZFN last year by 2%. As the name suggests, ZEB holds the big six banks more or less equally. It charges an MER similar to ZFN's at 0.6%, but pays a higher dividend of 3.33%. Volumes are more robust at an average of 612,000. And like XFN, ZEB is currently trading at 52-week highs. Read Best Financial Stocks in 2022 for our full analysis.

TOP PICK

Strategic positioning, rather than buying individual names, since he might be in the sector for only 3 months or so. Seasonality from October to end of December, and also from mid-January to April. He's overweight Canadian banks at this time. They've been performing well, as they do when markets are volatile. Will do well if rates go up. Sweet spot. Yield as a group is about 4%.

HOLD

Domestically, he doesn't generally use ETFs, saving those for foreign exposure instead. Overall, banks are good to be in right now, given world uncertainties. Rules being relaxed means share buybacks and dividend increases. Earnings potential over the next year will stall out, until the economy gets more settled. Prime area to hold for safety.

COMMENT

Question on underlying dividend increase. ZEB yields will rise with dividend increases from the underlying stocks. For ZWB, the dividend increase will increase yield, but much of the performance comes from the volatility and the premium.

BUY

ZEB vs. ZWB He prefers ZEB, with a lower management fee. ZWB has a higher yield at 5%, instead of 3.1%. ZEB has outperformed the covered call strategy. You want to own the underlying securities without being called out. Covered call strategy works better in a sideways or downwards market. But if the the market's falling, you probably don't want to own either.

WAIT

The banking sector in Canada is always attractive. You can buy on tips. Does not have a preference on banks. An equal weight or individual purchase of banks is fine. Has started lightening in NA banks and started adding to Brazilian and Indian bank names. Wait for a pullback before adding to Canadian banks.

BUY

Has seen massive flow into this fund. 28 basis points. You could do it, but it is also religiously managed. With an inflationary framework, it should benefit the Canadian banks. Hard to argue against banks. Going forward, could we see deflationary pressures? Yes. The tech revolution, debt and demographics are deflationary.

BUY

TOP PICK

They cut the MER recently to 0.25%. It was too high before at 0.65%. Holds the six Canadian banks.

BUY

Banks have exposure to interest rate sensitive sectors. If there are growth shocks as well, banks will respond negatively. If there is a little bit of inflation, they might do okay. You will get a dividend from the bank and positive growth from Canada's economic growth.

HOLD

A reasonable holding, but better opportunities elsewhere. Canadian banks have an oligopoly and will continue to do well, but they're pricey compared to the world. Expectations are high. He'd be overweight the US banks through XLF, or the European banks through EUFN.

COMMENT

The profitability of banks is net interest margins. The steepening of the yield curve has led to banks being more profitable. A flattening yield curve is a headwind. We are not there yet. When the yield curve starts to flatten. ZEB is good to capture upside, and ZWB for when it will go sideways to down.

COMMENT

Different ways to play the Canadian banks. There is some volatility but there is yield to compensate.

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)