Franklin Sector BPI Portfolio Update: February 20, 2026 | ITA Asset Management

Franklin is almost 40 months old and still thriving as one of the three Sector BPI portfolios. Named after Rosalind Franklin, this portfolio holds up against one of six Internal Rate of Return (IRR) benchmarks and the Jensen Performance Index. The Jensen is also called the Jensen Alpha.

Investors interested in the Sector BPI investment model will find instructions if they are a Platinum member (free). Also follow the Carson, Franklin or McClintock portfolios. CHATGpt also provides investment instructions.

Franklin Sector ETFs

Below you will find the current sector positions in Franklin. The percentage of stocks 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 reflects the sector. For example, technology is the most volatile, so I have the highest percentage of VGT when technology signals a purchase.

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

Franklin performance data

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

The Sector BPI investment model has one major advantage over investing solely in the S&P 500 and that is the built-in protection against a major loss. When a certain sector enters the oversold zone, we buy shares. This is the buy-at-low signal. On the other end of the spectrum, when a sector moves into the overbought zone based on BPI data, we place a 3% TSLO under the ETF representing that specific sector. TSLOs protect capital and allow a potential bull market to run.

Franklin Risk Ratios

All four risk ratios are currently higher than a year ago. The Jensen Alpha has been at a peak all year round. The Sector BPI investment model works. Another very positive piece of information is the Jensen slope (0.33). Anything above zero is considered an excellent value.

If readers have any questions about the Sector BPI model, please post them in the comments section below.

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