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  5. ZUB: In the past I owned ZUB or ZBK for exposure to the US Banks. [BMO Equal Weight US Banks Hedged to CAD Index ETF]
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Investment Q&A

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Q: In the past I owned ZUB or ZBK for exposure to the US Banks. I would like to go back to these ETF. But when I look at the top 10 holdings I see JPM and BAC, but not MS or GS . Are MS/GS not considered as banks for these Etf or are just a smaller percentage? Would you have another suggestion for this specific sector?

Would regional banking KRE be a better choice at the moment.
Or something like IYG, even if I would prefer a canadian Etf.
Thanks again.

Asked by Denise on May 19, 2022
5i Research Answer:

GS is the third largest holding in ZBK and ZUB. MS is not found in this ETF and it could be that the index categorizes it as an investment advisory and/or wealth management firm rather than a bank. IYG does include MS, but it is meant to cover the broader sector of financial services (also includes V and MA). We would be fine with IYG for broader coverage and like KRE for exposure to smaller US banks and equal-weighted exposure. Both have a fair fee structure, in our view, compared to other Canadian ETFs.