McClintock Sector BPI Portfolio Review: 13 March 2026

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McClintock is a Sector BPI portfolio that has been operating under this management style for nearly 29 months.  In this review we will check the performance over this period and look at how well it had done since 12/31/2021 or the launch date of the youngest ITA portfolio.  The Sector BPI investing model began as a hypothetical way to manage a portfolio.  When checking CHATGPT, this investing model is unique to ITA Wealth Management.

The basic idea is to break the broad U.S. Equities into the standard eleven sectors.  We then watch the Bullish Percentage Indicator (BPI) for each sector.  When a sector drops into the oversold zone, defined as 30% bullish or lower, we purchase shares in the ETF that mirrors that sector.  The number of shares to purchase is based on the volatility average over the past three years.  Readers will find those percentages in the first screenshot below.

Shares are held in that sector ETF until the BPI moves up into the overbought zone.  Overbought is defined as a BPI percentage of 70% or higher.  When this occurs we set a Trailing Stop Loss Order (TSLO) under the overbought ETF.  These simple rules lay out the Sector BPI investing model.

McClintock Sector ETF Holdings

We recently purchased shares of VCR for the three Sector BPI portfolios tracked here at ITA.  Since the last review shares of VDC were sold as the 3% TSLO was struck.  Currently, the McClintock holds shares in three sectors (VCR, VGT, and VOX) while the remainder of the portfolio is invested in SHV and RSP.  Were the market not priced for perfection I would hold more shares of RSP and fewer in SHV.

Were another sector to drop into the oversold zone, I would sell shares of SHV and purchase the recommended number of shares in the appropriate ETF.

If you check the third column from the left you will see the percentage of the total portfolio to invest in a particular sector.  The percentages from VAW down through VPU will add up close to 100%.

McClintock Performance Data

Since 12/31/2021 the McClintock has outperformed the AOR benchmark by a comfortable margin, but still lags the S&P 500 (SPY).

Several readers have asked about the unidentified section of the pie chart.  That is now quite clear with this post as the Investment Account Manager software is not picking up the sector ETF contributions.  I went into the software and cannot pick up where the error lies.  I need to contact the developers.

McClintock Risk Ratios

Each of the four risk ratios are well above where they were a year ago.  Particularly encouraging is the strong positive slope of the Jensen Performance Index or Jensen Alpha.

Another positive metric is the steady growth of the Sortino Ratio.  We use the Sortino Ratio as it is superior to the Sharpe Ratio in that the Sortino does not penalize growth to the upside.

McClintock Sector BPI Performance

The following table lays out how well the McClintock performed over the period when the Sector BPI investing model was in play.  The star or asterisk next to a percentage indicates the security was not invested over the entire period from 10/31/2023 through today’s data.

We are approaching enough history to have some confidence in the Sector BPI model based on the following positive data.  The McClintock is outperforming all tracked benchmarks, including the S&P 500 (SPY).

What the following data does not show is the influence cash held in the portfolio.  Assume cash is a drag to the Internal Rate of Return shown below.  This being the case, the actual IRR is likely to be a tad lower then the 73.43% value.