Franklin Sector BPI Portfolio Update: 29 September 2026

Looking for new location.

As I posted in the Forum last weekend, Real Estate dropped into the oversold zone with a 30% bullish signal.  This morning I purchased shares of VNQ for all three Sector BPI portfolios, Franklin being one of the three.  The Sector BPI portfolios now hold shares in six of the eleven sectors.

Since I have been managing portfolios with the Sector BPI approach it is rare to see this many sectors in the oversold zone.  This tells me the U.S. Equities market is weakening.  At least it is not as robust as it was a few weeks ago.

Franklin Sector Holdings

Below are the current holdings in the Franklin.  Should another sector drop into the oversold zone I will sell shares of SCHO to raise sufficient cash to purchase the “required” number of shares of the particular sector.  The target percentage for a given sector is based on the three-year volatility average.  The percentage of the 11 sectors will add to 100%.  Take Materials (VAW) as an example.  The target percentage is 9.7%.  Currently, the Franklin holds 12.8% or above the target.  Above target is fine.  If below target I will add a few more shares.

Franklin Performance Data

The following performance dates back to 12/31/2021 or closing in on five years.  Over this period the Franklin has nearly doubled the AOR benchmark, but still trails the S&P 500 (SPY).

Franklin Risk Ratios

All risk ratios are above where they were last September.  The two most critical ratios, Information and Jensen, dropped since August.  September is known to be one of the weakest market months and this September is fitting right in.

Franklin Sector BPI Performance

The Franklin began operating as a Sector BPI portfolio at the end of October 2022.  Over nearly four years the Franklin outperformed all benchmarks, including the S&P 500.

Pay no attention to the last two rows (Dow Jones Ind. and S&P 500 as that data is in error.

Once more, the asterisk (*) found in the IRR For Period column simply indicates the security was not part of the portfolio for the entire period.  This is to be expected as I moved securities in and out of the market based on the Bullish Percent Indicator readings.

Franklin Sector BPI Portfolio Review: 20 March 2026