Franklin Sector BPI Portfolio Update: 20 February 2026

Colorful Spirits

Franklin is nearly 40 months old and still thriving as one of three Sector BPI portfolios.  Named after Rosalind Franklin, this portfolio is holding its own when compared to any of the six Internal Rate of Return (IRR) benchmarks and the Jensen Performance Index.  The Jensen is also known as the Jensen Alpha.

Investors interested in the Sector BPI investing model will find instructions if one is a Platinum member (free).  Also, follow either the Carson, Franklin or McClintock portfolios.  CHATGpt will also provide investing instructions.

Franklin Sector ETFs

Below are the current sector holdings in the Franklin.  The percentage of shares to hold in a given sector is determined by taking three years of volatility and averaging that percentage.  The more volatile the sector the greater the percentage one should hold in the ETF that mirrors the sector.  For example, technology is the most volatile so I hold the highest percentage in VGT when technology signals a purchase.

Once an ETF is purchased the actual percentage is likely to deviated from the recommended percentage due to price changes.

Franklin Performance Data

Since 12/31/2021 the Franklin has outperformed five of the six tracked benchmarks.

The Sector BPI investing model has one big advantage over investing strictly in the S&P 500 and that is the built in protection against a major loss.  When a particular sector drops into the oversold zone we purchase shares.  This is the Buy when low signal.  On the other end of the spectrum, when a sector moves in the overbought zone based on BPI data, we place a 3% TSLO under the ETF that represents that particular sector.  TSLOs protect capital while letting a potential Bull market run.

Franklin Risk Ratios

All four risk ratios are currently higher than they were a year ago.  The Jensen Alpha is at a high point for the entire year.  The Sector BPI investing model is working.  Another very positive bit of information is the slope of the Jensen (0.33).  Anything above zero is considered an excellent reading.

If readers have any questions related to the Sector BPI model, place them in the Comment section provided below.