2024-03-13 00:48:32 ET
Summary
- Franklin Income Focus ETF offers a flexible and active 60/40 portfolio allocation, with a blend benchmark of the S&P 500 Index and the Bloomberg US Aggregate Index.
- INCM has a composition that reflects a realistic allocation for retail investors, with a focus on fixed-income and high-yield bonds. The 'Fixed Income' bucket currently sits at 60.8%.
- On the equity side, the highest allocation is to information technology, followed by financials and consumer staples. The trailing P/E for the equities sleeve is 17x.
- Via its dynamic allocation, the fund will be able to capture the prevalent macrocycles, thus set to outperform static 60/40 funds such as AOR.
Thesis
We all get frustrated when we benchmark our portfolios against the S&P 500 because it is not an appropriate index to look at. If you are an investor who is not in their 20s, we are hard-pressed to see how you would have your entire portfolio in equities. Especially in an environment where yields are at multi-decade highs....
Read the full article on Seeking Alpha
For further details see:
INCM: Active 60/40 Allocation From Franklin Templeton