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Investor Insights

This summary was created by AI, based on 13 opinions in the last 12 months.

The experts have mixed opinions on the BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB-T). While some believe that it is a good time to buy given the low valuation and attractive prices for Canadian banks, others are cautious about the performance in the past few years and the impact of rising interest rates. Overall, there is a consensus that the Canadian banks offer stability, good dividends, and long-term value, but there are concerns about the current economic environment and potential headwinds. The ETF provides exposure to the big six Canadian banks on a fairly equal weight basis, offering a stable ride and a decent growth rate, with a relatively low MER.

Consensus
Mixed
Valuation
Undervalued
BUY
ZWB question

Buy ZEB (no covered call) if you believe the banks will recover.

E.T.F.'s
PARTIAL BUY

Low MER, but not a good performance the past few years. Banks hit by rising interest rates. Good time to buy given low valuation. Would recommend adding slowly. 

E.T.F.'s
HOLD

Only the big 6, nothing simpler. Bellwether, the biggest. BMO did cut the fee a bit to 28 bps, but there are cheaper ones. If you're considering starting a new position, try HBNK, which has a fee waiver for the next little bit. No need to swap out of ZEB if you already hold it.

Before jumping in to either, consider how much bank exposure you may already have in your other index funds.

E.T.F.'s
BUY

Attractive prices for Canadian banks. Believes price levels of banks becoming attractive. Good time to buy. 

E.T.F.'s
WEAK BUY

Not a bad idea to start nibbling at the Canadian banks now. Doesn't know the MER offhand, but it is relatively low. You're better off owning the banks themselves, which will eventually rebound to new highs. Prefers TD and RY.

E.T.F.'s
BUY
For a beginner's TFSA?

6 largest Canadian banks on a fairly equal weight basis. Likes the Canadian banks, decent growth rate. Canadian banks have cheap valuations, especially on price to book. Not as exciting as tech or cyclical names, but you'll get more of a stable ride. Pretty good yield of 5.1%.

HBNK is an alternative. Pretty much the same makeup as ZEB, but offering 0% management fees until next summer.

E.T.F.'s
TOP PICK

Banks are down 20%+. This is what he'd buy, without the covered call, because he wants the growth at this point. Yield is around 3.5%, instead of 6%, but he doesn't care as he wants the growth, and we're going to see that with the Canadian banks despite headwinds in terms of US real estate. Canadian banks have all kinds of buffers in place. Loan loss problems in Canada are actually pretty small.

E.T.F.'s
premium

It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

This renown ETF from BMO holds the big six banks (including National Bank) evenly. ZEB charges an 0.55% MER, but pays a 4.62% dividend. To compare, Royal Bank pays 4.39% and CIBC 6.05% on the high end. Its beta is a low, stable 0.84 and the PE stands at 9.57x. So, you're asking, why buy banks? Why buy them when they're down 10%? Why after they all just reported earnings misses and lowered their guidance? When they warned of increasing loan-loss provisions? When the economy faces a possible recession?

E.T.F.'s
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

We would be quite comfortable owning Canadian banks today. The Canadian financial space continues to be one of the more robust across the globe, and their lending standards are considered to be quite high. While challenging economic events are putting downward pressure on earnings, we feel that an eventual turnaround in the macro outlook will be a benefit to these names down the road. Canadian banks continue to pay high dividend yields and have long track records of returning value to shareholders. While there may be some near-term or intermediate downward price pressure on these names, for an investor with a long-term timeframe, we would be comfortable owning the Canadian banks here.
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E.T.F.'s
PARTIAL BUY
A Canadian bank ETF?

Banks now may not be star performers as in the last 30 years. Interest rates are rising now and could stay this way for a while. Loan loss provisions will increase in a weakening economy. But of this class, he likes ZEB and ZWB (a covered call one for income) which he prefers, because he expects banks to be sideways and the covered call will enhance returns. You could buy a combination of the two.

E.T.F.'s
PAST TOP PICK
(A Top Pick Jan 24/23, Down 5%)

Canadian banks due well over long term.
Banking at top of cycle - as a result- banks not performing.
Financial sector concerns weighing on share price.
Hold on shares.

E.T.F.'s
BUY
Big 6 Canadian banks in the coming year

Offer good value now. Multiples are still past book value, but not 2x+. Also, they pay attractive yields. Our banking system differs from the US which has many regionals. He owns individual banks, not ETFs.

E.T.F.'s
BUY

Good way to get exposure on Canadian banks.
Relatively stable and defensive name.
Large banks are safe.
Not as much volatility.


E.T.F.'s
TOP PICK
The banks pay high dividends and are in strong seasonality. The chart has been sideways since early 2022, but investors need a good place to hide, which is here. But if there's a recession, banks will underperform.
E.T.F.'s
COMMENT
Has owned this in the past, but not now. Believes his team has a better than average ability to outperform by picking their favourite banks. See his Top Picks.
E.T.F.'s
Showing 1 to 15 of 157 entries

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

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 11

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, 11 stock analysts published opinions about ZEB-T. 10 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?

11 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 2024-04-24, BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB-T) stock closed at a price of $35.69.