TSE:ZEB

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.
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Investor Insights
star iconJun 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 icon
Consensus
Hold
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Valuation
Overvalued
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Similar
RY-T
BUY
A Canadian bank or a bank ETF? What's the seasonality? Seasonality is fall into spring. BNS is a contrarian play, but which banks depends on what you want. ZEB is the ETF to play.
COMMENT
He's tended to own banks individually. He's not particularly excited by some of the banks in this ETF. Would go with a covered call rather than the equal weight.
DON'T BUY
It holds 10 securities in a plain, vanilla basket of bank stocks. But this has been flat year to date. Caveat: banks aren't as safe you think as the recession approaches.
BUY
The banks have always done well and have a great track record. Likes this in particular because there is US exposure. The only problem is that the MER is too high at 66 basis points.
TOP PICK
It's consolidating. You can hold all the Canadian banks and reduce risk on individual banks, which have been deeply oversold in Canada. This can gain $2-3 before year-end, and it pays a 4% dividend. Sell below $26.80.
PAST TOP PICK
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
WEAK BUY

The banks are very inexpensive. His stance has been to focus on the US banks. He would like KBE-N preferably. This has long secular growth trails and you might do better in US banks.

WAIT

ZEB or ZWB? He has lightened up on the banks and is less than market weight now. He looks at the mortgage and housing markets, and right now it is not the best environment for the banks. Probably should be in the ETF with the covered call, ZWB. Tariffs are causing concerns and may wait till these issues are resolved. He would wait before committing to either of these ETF's.

DON'T BUY
As a registered investment We're late in the cycle and yield curves are starting to invert, so he doesn't like the banks. The banks won't break out, so he's underweight banks in Canada or America. That said, don't sell them all, because the dividends are good.
DON'T BUY
Canadian banks have done well but are peeling back a bit as they break below the $27 level. Not good. Sure, they pay 4% dividends and enjoy an oligopoly, but banks can still go down. Banks are not bulletproof.
PAST TOP PICK
(A Top Pick Jul 03/18, Up 2%) Likes it. Banking had a bump in Q4, but it's coming back. A good long-term hold because of their dividends. Good cash flow. Banks will increase their dividends.
BUY
He likes it but it is too expensive at 55 - 65 basis points. It shouldn't be more than 10 bps in terms of MER. He will use it in a small accounts.
WAIT
Having trouble getting through $30. For him to put money in, it would have to get over that. Chance to get it cheaper, don’t buy just yet.
BUY
The Banks have broken the last low, but a lot of stocks have done so. He will forgive them that. They are pretty oversold. There is room to go up.
TOP PICK

It charges a high 62 basis points, which is nuts. But it does access the Canadian banks. This should be 15 basis points tops. He still likes it though.

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