Q: Which do you prefer and why?
5i Research Answer:
This is essentially a call on the Canadian bank sector vs that of the US. Considering the higher competitive industry in the US, and recent issues with regional banks, we think the Canadian sector (ZWB) looks stronger right now. Valuations and dividends are attractive, and Canadians will still get some benefit from the dividend tax credit (tax allocation will vary each year).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWB.