zeb etf review

ZEB ETF Review: BMO Equal Weight Banks Index

In this post, we will discuss one of the most popular Canadian Bank ETFs: ZEB BMO Equal Weight Banks Index. We will review ZEB’s historical performance and compare to similar ETFs in the market.

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ZEB: Investment objective

The BMO Equal Weight Banks ETF has been designed to replicate, to the extent possible, the performance of the Solactive Equal Weight Canada Banks Index, net of expenses. The index includes the major Canadian banks with a balanced allocation as you can see in the composition of the portfolio below.

Updated daily – ZEB ETF

Banking sector perspectives 2023

Canada’s banking sector is generally considered to be stable and well-regulated, with a strong focus on risk management and conservative lending practices. The sector has weathered recent economic challenges relatively well, and the outlook for 2023 is positive.

The Canadian economy is expected to continue to grow at a moderate pace, which should support the banking sector’s profitability. Additionally, Canadian banks have been investing in technology and digital innovation, which could help them remain competitive and relevant in the face of changing consumer preferences.

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ZEB ETF review: AUM, MER and Dividend yield comparison

AUM
in M
MER
%
Div
Yld
FIE – Ishares CDN Fin
Mthly Income
9780.895.85
ZEB -BMO S&P TSX
Equal Weight Banks Indx
2,8000.283.08
ZWB –BMO Covered
Call Canadian Banks
2,7000.725.37
XFN –iShares S&P/TSX
Capped Financials Index
1,9000.612.66

ZEB ETF review: Performance comparison

Based solely on historical performance, ZEB -BMO S&P TSX Equal Weight Banks Index had one of the best performance in the past 5 years. In addition, the fund pays around a 3% dividend yield. The management expense ratio is at 0.28%, which is one of the lowest among our list.

For income seekers, FIE Ishares CDN Fin Mthly Income offers an attractive dividend yield above 5%. 

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ZEB Morningstar rating

Rating: 4 out of 5.

ZEB Holdings

Weight (%)Name
17,18%BANK OF MONTREAL
16,90%TORONTO-DOMINION BANK/THE
16,78%CANADIAN IMPERIAL BANK OF COMMERCE
16,59%NATIONAL BANK OF CANADA
16,50%ROYAL BANK OF CANADA
15,86%BANK OF NOVA SCOTIA/THE
0,19%CASH

Please consult issuers’ website for up-to-date data

ZEB dividends

Ex-Div
Date
Pay DateAmount
4/26/20235/2/20230.1400
3/29/20234/4/20230.1400
2/24/20233/2/20230.1400
1/27/20232/2/20230.1400