Spring Blue Bells
The Franklin is one of several Sector BPI portfolios using this investment model since late 2022. Thus far the performance is strong and the risk seems to be under control. This morning I checked on the Bullish Percent Indicator (BPI) data and Technology is within a whisker of the overbought zone. As a result I place a 3.0% Trailing Stop Loss Order (TSLO) under the six (6) shares of VGT.
Franklin Security Holdings
Below is the investment quiver and current security holdings within the Franklin. No sectors are oversold so no purchase orders are in place to pick up any sector ETFs.
Franklin Manual Risk Adjustments
U.S. Equity ETFs VTI and VOO are Hold recommendations so there are no plans to add more shares. As mentioned above, no sectors are oversold so no orders are in place to add sector ETFs.
In addition to the TSLO set for VGT, Real Estate is overbought so I have a TSLO in place to sell all shares of VPU. The TSLO for VPU has been in place for some time so this is not a new position.
Franklin Performance Data
Since 12/31/2021 the Franklin outperformed the SPY benchmark by over one percentage point. The lead is not huge, but still significant. The delta between the Franklin and VT, AOA, and AOR is significant.
Franklin Risk Ratios
Since 10/31/2022 the Franklin has been using the Sector BPI investing model. Over this period the Franklin performed reasonably well. Encouraging is the positive slope of the Jensen Performance Index, frequently known as Jensen Alpha. The model is adding value to the portfolio and that is critical.
If the Information Ratio is positive it is a good day.
Franklin Sector Portfolio Report
When we extract the ETFs used to populate the Franklin since we first began using the Sector BPI model, the performance is outstanding. The portfolio is besting all benchmarks including three major indexes found at the bottom of the table. Thus far it is difficult to argue against this investing model. The Sector BPI model is more difficult to manage than the Schrodinger and Copernicus, but still it is quite each to handle.
Investors with a bit of extra cash may experiment with the Sector BPI investing model. I’m interested in how other investors are finding this approach to building and managing a portfolio.
The Argument for Self-Management
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