For the second week in a row, there was a change to the Franklin International Rotation Model this week; sell the Franklin FTSE United Kingdom ETF (FLGB) and buy the Franklin FTSE Taiwan ETF (FLTW).

For the second week in a row, there was a change to the Franklin International Rotation Model this week.

Strength among international equities has seen a rotation away from Europe and towards Asia-Pacific nations in recent months, with the Franklin International Rotation Model selling the Franklin FTSE Europe ETF (FLEE) last week and buying the Franklin FTSE South Korea ETF (FLKR). This week once again saw another trade in favor of Asian-Pacific equities while reducing exposure to Europe. Specifically, the model sold the Franklin FTSE United Kingdom ETF (FLGB), leaving only 20% of the model’s holdings within Europe after entering the month with 60% exposure. Entering the model is the Franklin FTSE Taiwan ETF (FLTW), which is the strongest fund not currently owned by the model. FLTW holds a strong fund score of 5.40, which is 1.09 points higher than the average fund within the All Global and International Diversified group. The fund has seen significant improvement from its lows this year, holding a sharply positive score direction of 2.39 after completing five consecutive buy signals. Earlier in May, the fund returned to a positive trend while earning near-term strength over domestic equities, reversing into a column of Xs versus the S&P 500 Equal Weight (SPXEWI). The fund has pulled back from all-time highs, placing the fund in actionable territory around the middle of its ten-week trading band.