Franklin Sector BPI Portfolio Review: 20 March 2026

Time to sharpen wood cutting tool.

Recent market declines kicked several sectors into the oversold zone.  The Franklin ETFs impacted are:  VCR, VDC, VFH, VHT, VIS, and VOX.  When I ran the Bullish Percent Indicator (BPI) numbers before the market opened, Industrial registered 31.64 and Consumer Staples was 30.55.  This is why I placed limit orders for VIS and VDC.  Readers can match the ETFs with the specific names of the sectors using the first screenshot.  More information is available in the re-balancing recommendation worksheet.

I sold 54 shares of SHV this morning in order to raise cash.  This sell permitted me to set limit orders for the oversold sectors.  More on this below in the re-balancing worksheet.

Franklin Sector Holdings

Below are the current holdings in the Franklin.  VTI, RSP, SCHD and SHV are ETFs used as holding tanks when there are no or few oversold ETFs.

Franklin Rebalancing Recommendations

And now for the re-balancing recommendations.  Limit orders are in place for shares shown in the 6th column from the right edge.

The percentage to invest in a particular oversold ETF is based on the three-year average of its volatility.  The higher the volatility the higher the recommended percentage.  It is important to know what percentage to invest in a particular ETF when an oversold condition arises.

Franklin Performance Data

Since 12/31/2021 the Franklin has outperformed all six benchmarks tracked here at ITA.  Particularly noteworthy is the slight edge the Franklin holds over the S&P 500 (SPY).

Franklin Risk Ratios

This has been a profitable year for the Franklin.  Compare the current March values with those a year ago over on the left.

Franklin Sector Performance

The following table shows almost exactly how well the Franklin has performed over the period when using the Sector BPI investing model.  I insert the word “almost” as the IRR would not be quite this high as cash holdings are not included.  In a bull market cash is a drag so the IRR for the Period would not be quite as high as stated below.  Nevertheless, the Sector BPI investing model is holding up quite well.  Actually, it is working better than I initially hypothesized.

McClintock Sector BPI Portfolio Review: 9 October 2025