BMO Equal Weight Banks Index ETF (ZEB.TO) Stock 2026 Review

Mika L.
Written by Mika L.
Financial Content Writer

BMO Equal Weight Banks Index ETF4.5/5

ZEB.TO (TSX)

Dividend yield
2.94%
Distribution
Monthly
1-Year Return
41.28%
5-Year Return
97.66%

The BMO Equal Weight Banks Index ETF (ZEB) offers investors an impressive one-year return of 41.28%, reflecting its strategy of providing equal-weighted exposure to Canadian banks. With a solid dividend yield of 2.94%, ZEB presents a compelling choice for those looking to balance growth and value in their portfolios. Analysts have a favorable outlook, with a 12-month price target averaging C$58.85, indicating continued potential for appreciation.

Pros:

  • Strong one-year performance
  • Equal-weighted exposure reduces single-name risk

Cons:

  • Potential for significant losses if the ETF price goes down
  • Market volatility risk

The BMO Equal Weight Banks Index ETF (ZEB.TO) may be suitable for investors seeking diversified exposure to the Canadian banking sector with a balanced approach to growth and income, as evidenced by its strong recent performance and reasonable dividend yield. However, potential investors should consider the inherent risks associated with sector-specific investments and ensure it aligns with their overall investment strategy.

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