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.
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 | 978 | 0.89 | 5.85 |
| ZEB -BMO S&P TSX Equal Weight Banks Indx | 2,800 | 0.28 | 3.08 |
| ZWB –BMO Covered Call Canadian Banks | 2,700 | 0.72 | 5.37 |
| XFN –iShares S&P/TSX Capped Financials Index | 1,900 | 0.61 | 2.66 |
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
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 Date | Amount |
|---|---|---|
| 4/26/2023 | 5/2/2023 | 0.1400 |
| 3/29/2023 | 4/4/2023 | 0.1400 |
| 2/24/2023 | 3/2/2023 | 0.1400 |
| 1/27/2023 | 2/2/2023 | 0.1400 |