ZEB Dividends: Everything You Need to Know (2026)

What Is ZEB?

ZEB (BMO Equal Weight Banks Index ETF) is a straightforward Canadian bank ETF that holds equal-weight positions in Canada's six major banks: TD, RBC, BMO, Scotiabank, CIBC, and National Bank. Unlike ZWB, ZEB does not use a covered-call strategy — it simply holds the banks and passes through their dividends.

This means ZEB participates fully in bank stock gains when markets rise, but also falls fully when banks decline. The absence of covered calls keeps the MER low (~0.28%) and keeps the strategy simple and transparent.

ZEB trades on the TSX under the ticker ZEB.TO and is a popular choice for long-term investors who want Canadian bank exposure without the complexity or upside cap of a covered-call strategy.

ZEB vs ZWB — Key Differences

Many investors compare ZEB and ZWB since they hold the same underlying banks. The key differences:

• Covered calls: ZWB writes covered calls for extra income; ZEB does not. This gives ZWB a higher yield (~6–7%) vs ZEB (~2.6%) but caps ZWB's upside.
• MER: ZEB charges ~0.28%/year vs ZWB's ~0.72%/year. Over 10–20 years, this fee difference compounds significantly.
• Distributions: Both now pay monthly, but ZWB's monthly payouts are higher due to option premiums.
• Total return: In strong bull markets, ZEB typically outperforms ZWB because there is no covered-call cap on gains.

The simplest rule: if you need income now, ZWB. If you're building wealth long-term, ZEB is often the better-performing choice.

ZEB Payout Calculator

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