Larry Berman CFA, CMT, CTABMO EQL WGT US BANK HDGD TO CAD IDX ETFZUB.TOHOLDJan 21, 2013

BMO has a hedged and an unhedged version. Both are equal weight. More diversified to include regional banks.

There's also UBNK, also an equal weighting. Much more concentrated in the big banks only.

Largest in the category. ZBK is unhedged, but there's a hedged version as well (ZUB). He'd opt to start hedging risk away a bit more, given what seems a concerted effort to weaken the USD. Gives you diversification in the US banks, instead of Canadian banks, as it's a different market and different economy. 
 
Banks are very sensitive to the economy, and we're in a recessionary period. He'd wait for positive market follow throughs before allocating capital. If you're in it for the long term, you could buy this on the pullback. Interestingly, US banks are down about 21%, whereas Canadian banks (as in ZEB) are down 9%.

US banks have been on fire, though valuations are higher. Interest rate margins are good. Do you expect banks to outperform? He suggests holding 25% in ZUB and 75% in the diversified S&P. It depends on how confident you are about the US banks.

Despite being better diversified, US banking space can be more volatile than Canada's. Achieves more capital growth then an ETF with a covered call strategy. As well, consider some of the active options as offered, for example, from Hamilton.

Would buy on the dip. Not expecting for this stock to breakout in the short term. Good for long term investors. 

A passive way to get exposure to US banks. More regionalized, not as much exposure to the large caps. Not as good a buy as it was a few months ago.

Both good, but ZBK gives US dollar exposure.