Franklin Sector BPI Portfolio Review: 27 February 2024

Carver sketch of Japanese Garden

Franklin Sector BPI Portfolio Review: 27 February 2024

In this innovative review of the Franklin Sector BPI investment portfolio, we delve into the dynamic world of sector-based investments. Our analysis highlights the potential for growth and reveals the strategic opportunities within each sector. Stay tuned for a comprehensive examination of the Franklin Sector BPI portfolio, where creativity meets investment prowess.

The above paragraph was generated by an AI generator available within a plugin I’m using on this blog.  The software that operates beneath what you see and read on this blog is called WordPress.  It is an open source software program that lies beneath thousands of blog sites around the world.  And now to the review or update of the Franklin portfolio.

The objective of the Franklin is to equal or outperform the S&P 500 while trying to protect capital.  In this review I’ll explain the latest version of the Sector BPI investing model.

Franklin Security Holdings

Below is the current investment quiver and holdings for the Franklin.  Eventually ESGV will be purged from the Franklin.  I have a narrow TSLO set to sell 31 shares of ESGV. Since no sectors are in the Buy zone the Sector BPI model calls for investing available cash in either VOO or VTI.

The Franklin will eventually include only the eleven sector ETFs plus VTI and VOO.  This will simplify the Sector BPI model.

Franklin Manual Risk Adjustment

As mentioned above a TSLO is set to sell all shares of ESGV.  In addition I have two limit orders set to use available cash to purchase more shares of VOO.  No action is recommended for any of the sector ETFs.  The single share held in VDE and VFH are shard holdings and I don’t plan to do anything with either holding.

The Maximum Trade Position Risk is set much higher (19.6%) than normal so as to reduce the Total New Cash ($986.09) and invest the cash in VOO.  Remember, the goal is to equal or exceed the SPY benchmark.

Franklin Performance Data

Over the past 26 months the Franklin just edges out the SPY based on IRR performance data.  Consider it a tie.  Take note of how the Franklin is outperforming the other potential benchmarks.

I use commercial software (Investment Account Manager) to measure IRR values.

Franklin Risk Ratios

Based on risks involved, the Franklin has a negative Jensen Alpha rating.  While the slope of the Jensen is positive, one goal is to move the Jensen Performance Index back into positive territory.

Franklin Sector Portfolio Report

We now have over one year of Sector BPI data for the Franklin as sector ETFs were first purchased in November of 2022.  Of the holdings, only ESGV has been a major drag on performance.  Nevertheless, the Franklin, with an IRR for Period is topping the SPY benchmark by nearly 10 percentage points, 41.1% to 31.5%.  The longer we can keep this up the more support one has for the viability of the Sector BPI investing model.

Pass the ITA link on to friends and family.

Questions and comments are always welcome so chime in.  I’ll attempt to answer honestly.

Franklin Portfolio Review: 21 July 2023