There were no changes to the Franklin International Rotation Model this week.

The resurgence of international equities has been one of the most surprising developments so far in 2025, as most foreign regions are outpacing the S&P 500 (SPX) by a decent margin. One of the more notable examples of international equities rebounding comes from India, which has dramatically turned around since the end of February. The Franklin FTSE India ETF (FLIN) is up more than 10% since the start of March, significantly improving its relative strength in the process. FLIN holds a strong 4.58 fund score, which is 1.65 points higher than the average Emerging Market Equity representative, in addition to being 0.68 points greater than the average India fund. The fund also possesses a sharply positive score direction of 2.23, highlighting its improvement this year. FLIN trades in a positive trend dating back to 2020, in addition to holding both long and near-term relative strength versus domestic markets. With its recent turnaround, the fund also completed a buy signal late last week for the first time since September. Those looking to add exposure could look to do so after some consolidation or a pullback near the middle of the trading band around $35.50 given the FLIN’s slightly elevated overbought/oversold (OBOS) reading north of 75%. Initial support for the fund lies at $35 then $34. 

This section of the report categorizes select Franklin ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those Franklin ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Franklin ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Legend:

• UPPERCASE indicates that the RS chart is on a buy signal.
• lowercase indicates that the RS chart is in a sell signal.
• GREEN lettering indicates the ETFs trend chart is on a buy signal.
• RED lettering indicates the ETF is on a sell signal.
• Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

The Franklin LibertyShares International Model is designed to identify major country and regional themes in the international marketplace through the use of the Point & Figure relative strength tools. For more information on the portfolio construction and back testing, see the model info file on the models page.  (Note: The Franklin LibertyShares ETF Models will be updated Thursday mornings by 9:30 am EST) 

Weekly Changes: 

* - Dates prior to 09/01/2018, which is when the Franklin LibertyShares ETF Model became available on the NDW Research Platform, are representative of when the position was added to the backtested model.