
There was a trade within the Franklin International Rotation Model this week: Sell the Franklin FTSE India ETF [FLIN] and buy the Franklin FTSE United Kingdom ETF [FLGB].
There was a trade within the Franklin International Rotation Model this week: Sell the Franklin FTSE India ETF FLIN and buy the Franklin FTSE United Kingdom ETF FLGB.
India was sold because the fund showed enough relative weakness within the model’s universe, falling below the sell threshold to warrant a rotation into a stronger part of the globe. Europe, developed markets in particular, remain points of featured relative strength on the global stage. With the change, FRANKLININTL now sees roughly 60% of total allocation from Europe (Europe FLEE, Germany FLGR & United Kingdom FLGB). Other holdings include China FLCH & Canada FLCA as we sit roughly mid-way through August.
FLGB holds a strong 4.18 fund score, having advanced roughly 21% so far this year. It trades on a PnF buy signal and well within a positive trend, adding to the weight of the evidence. It also pays a near 4% yield, adding extra income to the model which now has a weighted average yield just under 2.5%.