skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ZWB: For a long term hold (15 years) in a RESP, would you prefer ZEB or ZWB and provide reasons why. [BMO Covered Call Canadian Banks ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: For a long term hold (15 years) in a RESP, would you prefer ZEB or ZWB and provide reasons why. Also any other suggestions would be appreciated.
Asked by David on December 01, 2023
5i Research Answer:

ZWB is the more conservative option of the two, with more of a focus on income. ZWB will do better in a flat market and decline less in a down market. ZEB is better targeted for a rally and has higher upside potential than ZWB, although it can also see larger drawdowns. We prefer ZEB because of the long-term horizon in which banks have typically performed well which gives ZEB more opportunity for growth. We think ZEB is a good option here, but two similar alternatives could be HEWB and RBNK.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWB.