Franklin Portfolio Update: 6 August 2026

Antique Fire Alarm Bell

We are a few months away from collecting four years of data for the Franklin Sector BPI portfolio.  As with the Carson and McClintock, the Sector Bullish Percent Indicator investing model is working better than anticipated when I first launched this investing model.

Using Bullish Percent Indicator (BPI) data from StockCharts for the eleven different market sectors we use sector index ETFs for each division of the U.S. Equities market.  When the sector moves to a bullish reading of 70% or higher we place a 3.0% Trailing Stop Loss Order (TSLO) under the ETF that invests in that particular sector.   When a sector drops to a bullish reading of 30% or lower we purchase shares based on a volatility calculation.  The more volatile a sector the higher the percentage we invest in that sector.

Franklin Sector ETF Holdings

Below are the current holdings within the Franklin portfolio.

Readers interested in this investing model should check the Forum section of this blog as that is where I most frequently post any changes in the sector readings.  This week I posted several sectors that moved into the overbought zone (70% or higher) so TSLOs were set for those particular ETFs.

For some reason the Tiingo download did not bring in all the ETF descriptions.

Franklin Performance Data

Since 12/31/2021 the Franklin crushed the AOR benchmark, but is a tad behind the S&P 500 (SPY).

Franklin Risk Ratios

When risk enters the equation the Franklin performs very well as indicated by the strong slope (0.35) of the Jensen Alpha.  The current beta for the Franklin is a modest 0.524 so this is not a high risk portfolio.

Three of the four risk ratios are higher than they were a year ago.  Only the Treynor is lower and this is the least important metric of the four ratios.

Franklin Sector BPI Investing Model Performance Data

Examine the table below to see how well the Franklin has performed since 11/1/2022.

I forgot to include the money market fund in the table.  Next time I’ll include that additional information.

It takes a little effort to implement the Sector BPI investing model, but it is showing to be well worth the effort.