Key Highlights

  • TSX:ZEB holds Canada's Big Six banks in equal weights of roughly 16.7% each, rebalanced regularly.
  • Approximate AUM is in the C$4.5–6 billion range, making it Canada's leading bank sector ETF.
  • All six banks beat third-quarter estimates, generating combined net income of about C$19 billion.
  • Monthly distributions and an indicative yield of around 3.5% appeal to income investors.
  • Fourth-quarter results, dividend hikes and credit quality amid the trade war are the next key catalysts.

Fund Snapshot

Fund

BMO Equal Weight Banks Index ETF

Ticker

TSX:ZEB

Issuer

BMO Global Asset Management

Benchmark

Solactive Equal Weight Canada Banks Index

Approx. AUM

C$4.5–6 billion

Approx. NAV per unit

C$58–63

Approx. YTD total return

+18% to +23%

Indicative distribution yield

About 3.3%–3.7%

MER

About 0.28%

Distributions

Monthly

Holdings

6

Fund Objective and Benchmark

The BMO Equal Weight Banks Index ETF (TSX:ZEB) seeks to replicate, net of expenses, the Solactive Equal Weight Canada Banks Index. The fund gives equal weight to each of Canada's six largest banks, avoiding the dominance of the biggest lenders that occurs in market-cap weighted indexes.

Equal weighting means smaller banks such as National Bank and CIBC carry the same influence as Royal Bank and TD, and periodic rebalancing naturally trims winners and adds to laggards.

Why TSX:ZEB Is Trending Now

Canadian bank stocks have delivered one of the strongest sector performances of 2026, and the third-quarter earnings season reinforced that trend. Every Big Six bank beat analyst estimates, and five of six grew reported net income year over year.

Royal Bank of Canada posted record net income of about C$6.0 billion, up 11%, on strength in wealth management, capital markets and commercial banking, with a CET1 ratio of about 13.5%. TD Bank earned roughly C$4.6 billion, up about 38%, with record Canadian and wholesale results and a CET1 ratio of about 14.3%. Scotiabank continues to benefit from its restructuring, while National Bank is integrating its Canadian Western Bank acquisition.

Credit has held up better than feared, with some banks reporting lower provisions for credit losses despite the trade dispute with the United States.

Holdings and Allocation

  • Royal Bank of Canada: about 16.7%
  • Toronto-Dominion Bank: about 16.7%
  • Bank of Montreal: about 16.7%
  • Bank of Nova Scotia: about 16.7%
  • Canadian Imperial Bank of Commerce: about 16.7%
  • National Bank of Canada: about 16.7%

The fund is 100% financials and 100% Canadian-listed, although the banks have significant operations in the US, Latin America and global capital markets. Weights drift between rebalancing dates.

What Investors Can Watch Going Forward

  • Fourth-quarter earnings in late November and early December, typically paired with dividend increases.
  • Bank of Canada on October 28: higher rates can widen lending margins but raise credit risk for borrowers.
  • Credit quality: a softer job market, with August employment down about 41,700, could lift loan loss provisions.
  • Trade war fallout: tariffs may affect business lending, investment and consumer confidence.
  • Capital markets activity: strong trading and wealth revenues have been key profit drivers.

Bottom Line

TSX:ZEB offers a straightforward, diversified way to own Canada's banking oligopoly. Record earnings, solid capital and growing dividends support the outlook, while credit and trade risks warrant attention. Figures are approximate; verify the latest information with BMO.