The Big Six Canadian banks all unveiled their third quarter fiscal 2022 earnings in the final weeks of August. Canadian financial institutions are world renowned for their stability. These profit machines proved their mettle in the face of the 2007-2008 financial crisis. However, they are still susceptible to headwinds in the form of high inflation, rising interest rates, and a looming recession. The slowdown has started to rear its head for many top bank stocks.
Investors should not despair in this climate. On the contrary, this is a great time to snatch up Canada bank stock son the dip. The BMO Equal Weight Banks ETF (TSX:ZEB) offers Canadian investors the chance to take a broad approach to this strategy. This exchange-traded fund (ETF) aims to track the performance of the Solactive Equal Weight Canada Banks Index. Its shares have dropped 13% in 2022 as of close on August 30. That has pushed the ETF into negative territory in the year-over-year period.
This ETF carries a MER of 0.28%, which puts it in solid territory relative to the average. It carries a medium risk according to the fund facts.
Canadians should immediately recognize the Big Six banks that make up the holdings in this fund. The distributions are nearly even, though National Bank, Royal Bank, and TD Bank technically possess the heaviest weighting at 17% apiece. I’m looking to snatch up this bank focused ETF on the dip as we close the book on August 2022.
