Is there an ETF for Canadian banks?
Equal-weight Canadian bank ETF
Leveraging its strong expertise in fundamental equity investing, TDAM has built an innovative Canadian bank ETF, TD Canadian Bank Dividend Index ETF (TBNK), providing more options and opportunities for investors.
ZWB VS ZEB
ZEB is the better ETF. Both funds have monthly dividend distributions. ZEB is the better performing, more popular and less expensive ETF than ZWB which is higher-yielding.
KBE is the best performing bank ETFs versus its benchmark. It has $1.5 billion in assets under management and a -4% return over the past 12 months. FTXO has declined 9% over the last 12 months and has AUM of $141 million. KBWB has net assets of $1.4 billion and returned -10% over the past year.
| ETF | Price | 1 Yr Return |
|---|---|---|
| iShares S&P/TSX 60 Index ETF (TSE:XIU) | 32.79 | 5% |
| The Horizons Capped TSX Composite ETF (TSX:HXCN) | 34.57 | 9% |
| Vanguard FTSE Canada ETF (TSX:VCN) | 43.99 | 6% |
| iShares S&P/TSX Dividend Aristocrats ETF (TSX:CDZ) | 31.48 | 1% |
- BMO Equal Weight Banks Index ETF (ZEB)
- iShares S&P/TSX Capped Financials Index ETF (XFN)
- BMO Covered Call Canadian Banks ETF (ZWB)
- RBC Quant Canadian Bank Leaders ETF (RBNK)
- iShares Canadian Financial Monthly Income ETF (FIE)
- Horizons Big Banks Index ETF (HBG)
Canadian investors looking for a bank ETF that pays a lucrative distribution look no further than the BMO Covered Call Canadian Bank ETF (TSX:ZWB). This Canadian bank ETF invests in the same holdings as our previous ETF ZEB. In fact, ZWB's biggest holding is ZEB.
Yes, TSE:ZWB has paid a dividend within the past 12 months.
Despite falling sharply of late, the long-term growth outlook for these large Canadian bank stocks is still solid. Higher interest rates have been putting pressure on Canadian bank stocks since 2022.
Today, the banks doing the best in terms of the most consistent dividend yield are Bank of Montreal (TSX:BMO) and Canadian Imperial Bank of Commerce (TSX:CM). They also offer some of the highest dividend yields as well among the Canadian banks.
What is the largest ETF in Canada?
Last, but certainly not least, is XIU, the largest and oldest ETF in Canada. This ETF originally started trading in 1990, making it the first ETF in the world. It tracks the eponymous S&P/TSX 60 index, which unlike the Capped Composite does not hold small caps and is largely dominated by large-cap stocks.
VFV is the Canadian equivalent of the popular Vanguard S&P 500 ETF (VOO), offered by Vanguard U.S., with both VFV and VOO tracking the S&P 500.
- Clarify your goals: ETFs are a good match for many (if not most) portfolios. ...
- Define your criteria: There are two ways to shortlist ETFs – choose from pre-set screens or create your own. ...
- Compare ETFs: Once you've shortlisted your funds, you have the option to compare up to 5 ETFs.
| Ticker | Company | Dividend Yield |
|---|---|---|
| CDZ | Blackrock | 3.89% |
| HAL | Horizons | 3.43% |
| VIG | Vanguard | 1.79% |
| VYM | Vanguard | 2.96% |
| Symbol | Name | 5-Year Return |
|---|---|---|
| GBTC | Grayscale Bitcoin Trust | 67.50% |
| USD | ProShares Ultra Semiconductors | 58.79% |
| FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 53.73% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 49.76% |
The S&P/TSX Composite Index is a capitalization-weighted equity index that tracks the performance of the largest companies listed on Canada's primary stock exchange, the Toronto Stock Exchange (TSX). It is the equivalent of the S&P 500 index in the United States, and as such is closely monitored by Canadian investors.
Canadian banks have traditionally been a source of stable dividend income for investors in one of the country's largest sectors. HBNK seeks to replicate, to the extent reasonably possible and net of expenses, the performance of an index of equal-weighted equity securities of diversified Canadian banks.
Best bank for investing: BMO
You can invest in an impressive number of GICs, stocks, ETFs, mutual funds, and bonds with BMO. If you're investing on your own online with BMO InvestorLine Self-Directed, you'll pay low trade fees and have full access to tools and resources to inform your investing.
- BMO Capital Markets.
- CIBC World Markets.
- National Bank Financials.
- RBC Capital Markets.
TD Q Canadian Dividend ETF seeks to earn income and moderate capital growth by using a quantitative approach to security selection to invest primarily in, or gain exposure to, dividend-paying equity securities and other income-producing instruments of Canadian issuers.
Which Canadian bank has the highest GIC?
What is the highest paying GIC rate in Canada? As of February 2024, the highest paying GIC rate in Canada is 5.50% interest on a 1-year term at EQ Bank. For GICs with a 5-year term, Hubert Financial and Ideal Savings currently offer the highest rate at 4.75%.
U.S.-listed ETFs typically come with lower fees (MER) than their Canadian-listed counterparts. They also reduce, and in some cases eliminate, the additional 15% withholding tax imposed on foreign dividends when held inside an RRSP.
For example, an MER of 0.50% means that for every $10,000 invested, the ETF charges a fee of $50 annually. ZWB has an MER of 0.72%, compared to ZWU at 0.71%. The difference between the two is $1 in fees annually on a $10,000 portfolio, making them virtually tied. Still, if we had to pick a winner, the nod goes to ZWU.
Trade ZWB.TO with: Annual Dividend & Yield 1.34 (7.54%) Most Recent Dividend 0.110 on 02/27/24. Management Fee 0.65%
26, 2024.
