Buy, Sell or Hold: BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB-T)

TSE:ZEB

40.34

0.38 (0.93%) 1d

Showing 1 to 15 of 133 entries

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.

E.T.F.'s

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%.

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

BUY

E.T.F.'s

TOP PICK

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

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

COMMENT

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

E.T.F.'s

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.

E.T.F.'s

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.

E.T.F.'s

Showing 1 to 15 of 133 entries

BMO EQUAL WEIGHT BANKS INDEX ETF(ZEB-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 9

Stockchase rating for BMO EQUAL WEIGHT BANKS INDEX ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO EQUAL WEIGHT BANKS INDEX ETF(ZEB-T) Frequently Asked Questions

What is BMO EQUAL WEIGHT BANKS INDEX ETF stock symbol?

BMO EQUAL WEIGHT BANKS INDEX ETF is a Canadian stock, trading under the symbol ZEB-T on the Toronto Stock Exchange (ZEB-CT). It is usually referred to as TSX:ZEB or ZEB-T

Is BMO EQUAL WEIGHT BANKS INDEX ETF a buy or a sell?

In the last year, 9 stock analysts published opinions about ZEB-T. 7 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO EQUAL WEIGHT BANKS INDEX ETF.

Is BMO EQUAL WEIGHT BANKS INDEX ETF a good investment or a top pick?

BMO EQUAL WEIGHT BANKS INDEX ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO EQUAL WEIGHT BANKS INDEX ETF.

Why is BMO EQUAL WEIGHT BANKS INDEX ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BMO EQUAL WEIGHT BANKS INDEX ETF worth watching?

9 stock analysts on Stockchase covered BMO EQUAL WEIGHT BANKS INDEX ETF In the last year. It is a trending stock that is worth watching.

What is BMO EQUAL WEIGHT BANKS INDEX ETF stock price?

On 2022-01-24, BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB-T) stock closed at a price of $40.34.

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