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

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

75.03

-0.40 (0.53%)

as of Jun 26, 2026, 7:59:58 pm Market Open.

273 watching

Investor Insights

Jun 27, 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) has garnered mixed feedback from various experts. Many see it as a strong long-term performer, particularly due to its excellent dividend yields and stable fundamentals backed by Canada's well-capitalized banks. However, there are concerns regarding overvaluation and potential underperformance in the face of an economic slowdown or recession. While some experts suggest the ETF remains a good hold, they advise against adding new investments at the moment. Overall, they recommend a cautious approach, emphasizing the importance of buying on dips while recognizing the ETF’s exposure to both real estate and the expanding resource sector due to AI advancements.

Consensus

Hold

Valuation

Overvalued

Similar

RY-T

PAST TOP PICK

(A Top Pick Mar 01/21, Up 9%) No bank exposure right now. Seasonally, starts to back off right about now, especially if interest rates do start to move down. Might be an uptick in August, with earnings. Best to wait until October to re-enter.

COMMENT

ZEB is equal weight where as ZWB is equal weight banks with a covered call overlay. When you think the markets will go sideways or down, covered calls will perform better. However, the covered call gives away some of the upside potential so if you are bullish on growth, forego the covered call.

BUY

You have credit risk for mortgages. Banks are well provisioned for credit losses, though these might be loosened shortly. The yield curve is steepening so in the short run, banks are more profitable. It's hard to say how much is priced in. Not early but if the yield curve remains steep, banks will do well over the next few years.

COMMENT

Viewer sought advice on allocating money from a GIC coming to term. Canadian banks are amongst the best in the world with stable dividends. There is little worry asides from the equity market risk. You could see draw downs like we saw with covid. You have to be able to not panic when it falls from $28 to $18.

TOP PICK

Canadian banks have performed really well recently. A lot has to do with rising interest rates. Canadian banks are unique. They are an oligopoly. If the market slips a bit here, Canadian banks can perform well.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Banks remain attractive, especially for their valuation and dividends. The banking sector rallied strongly in November but the ETF is still a fine buy. Unlock Premium - Try 5i Free

COMMENT

Canadian banks are much better run and offer good dividend yields compared to elsewhere in the world. There is some risk in the housing sector and some challenges to growth. He would favour ZWB right now. Once markets correct 10-15%, get out of the ZWB and get ZEB for the growth.

HOLD

There is still some economic risk, such as mortgage forbearance that has not hit Main Street yet. It's not his favourite area. The Canadian banks came back more than American ones so there is probably more value than other areas. As investors move from growth to value, banks could see some upside. Be cautious and he would prefer the ZWB to get into the Canadian banks.

COMMENT

Owns all the Canadian banks and you don't have to worry which one is going to lead. However, the US banks are also quite cheap relative to the Canadian banks.

COMMENT

The rule of thumb is, if you are bullish, then you don't want the headwind of the covered call overlay. If you are concerned about sideways or downside risk, then you want the additional yield from the covered call.

COMMENT

ZWB-T vs. ZEB-T. If your view on the banks is sideways to down a little bit, then ZWB-T is the better holding but if you are bullish on the banks then you don’t want the covered calls. He prefers ZEB-T right now because he wants all the price capture upside when the banks recover.

DON'T BUY

Banks are relatively benign. Not good, not bad. There is a lid on banks. It's a good dividend play for the long term but there is a real up and down in the stock price. He wouldn't expect much growth.

DON'T BUY

Canada has a branding problem now--money isn't flowing into Canada. Look at Teck Resources yesterday withdrawing a massive project. We have no catalyst to turn things around, though he hopes things do turn around. The yield of this is alright though, so you are paid to wait. Look abroad for better returns like South Korea, which should bounce back.

BUY

A bank ETF He owns banks, not ETFs, but this is good, a blend of banks that pays a fine 4% dividend.

HOLD

If you own this, you might as well hang onto this. However, watch your total Canadian exposure. The banks are 30% of the TSX composite and the management expense ratio is high. You're paying a premium, especially if it's taxable. He would diversify out of this. If you don't own it, don't buy it.

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BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)