There was change to the Franklin International Rotation Model this week; buy the FTSE India ETF (FLIN) and sell FTSE Hong Kong ETF (FLHK).

There was a change to the Franklin International Rotation Model this week.

For the third month in a row, there was enough change in relative strength in the Franklin International Rotation Model to warrant a trade. April was a turbulent month for most markets, impacted by announced U.S. tariffs. That turbulence extended to Hong Kong, seeing the Franklin FTSE Hong Kong ETF (FLHK) fall as much as 14.9% from the end of March before recovering enough to end April down only 1.3%. Despite its recovery, the fund saw enough deterioration to fall below the model’s sell threshold, allowing for a stronger area of the market to enter.  

Entering the model is the Franklin FTSE India ETF (FLIN), which is the highest-ranking fund not already held by the model. FLIN holds a strong 4.49 fund score, which is 1.52 points higher than the average Emerging Market Equity representative, in addition to being 0.7 points greater than the average India fund. The fund gained 3.9% in April while returning to a buy signal for the first time since September of last year. Looking farther back, FLIN has traded in a positive trend dating back to 2020 and has displayed long-term relative strength over the iShares MSCI ACWI ex US ETF (ACWX) since 2021.

The Franklin International Rotation Model will rebalance back to equal weight after the trade, with it now holding exposure to the following funds: