State Street Bridgewater All Weather ETF

ALLW

Valor de mercado US$ 1,81 bi

Prediction markets point to a divided Congress after November's midterm elections: Democrats retaking the House, Republicans holding the Senate. Key Takeaways: A divided Congress after the midterms may limit big legislation but not targeted policy moves.

Ray Dalio, the billionaire founder of Bridgewater Associates, is known for many things in the financial industry, including starting one of the biggest hedge funds in the world. He is also known for the All Weather Fund, which aims to do well in all markets.

ALLW underperformed SPY since April as yields rose and gold pulled back, but the underlying macro thesis remains intact in my view. Rising Treasury yields, sticky inflation, and Fed chair Warsh's removal of forward guidance define a backdrop that favors diversified, risk-balanced strategies like ALLW. Non-US earnings yields in Europe and Japan exceed the US figure, while bond yields above 4% support, in my opinion, ALLW's fixed income allocation.

State Street Bridgewater All Weather ETF applies Ray Dalio's risk parity framework, targeting equity-like growth with lower volatility than traditional 60/40 portfolios. ALLW is overweight bonds via futures, with embedded leverage and global diversification across equities and commodities, resulting in higher volatility than AOR. The ETF outperformed 60/40 portfolios during risk-off and recessionary periods but suffers deeper drawdowns when rates rise and commodities underperform.

Alternative ETFs and their growing role as portfolio diversifiers were the focus of this week's ETF Prime. Host Nate Geraci welcomed Cinthia Murphy, director of research at VettaFi, followed by Matt Bartolini of State Street Investment Management.

State Street Investment Management recently released its Midyear Outlook, and it captured the market's moment incredibly well, depicting an environment marked by both resilience and fragility. When we dive into the latest macro economic data, we see exactly that: a market that's anchored on solid fundamentals but that's also growing fragile as confidence wanes.

The State Street Bridgewater All Weather ETF offers a globally diversified, actively managed multi-asset strategy targeting conservative investors seeking stability and income. ALLW allocates across equities, inflation-linked bonds, and global nominal bonds, with a focus on mitigating inflation and market volatility. With a 4.26% distribution yield and flexible asset allocation, ALLW is positioned to benefit from ongoing inflationary pressures and supply chain disruptions.

With global macroeconomic pressures not abating any time soon, and inflation signals coming in higher than expected, many advisors and investors are seeking guidance on how to amplify inflation protection within their portfolio.

Marshall Financial Group, LLC bought 431,569 shares of SPDR Bridgewater All Weather ETF (ALLW) Quarter-end position value increased by $12.45 million, reflecting both share purchases and price movement Transaction represented a 2% change in 13F reportable AUM Post-trade, the fund held 431,569 shares valued at $12.45 million The new ALLW stake accounts for 1.99% of Marshall Financial Group's 13F assets, placing it outside the fund's top five holdings

Many investors want a portfolio that will stand up to all market conditions. Bridgewater founder Ray Dalio has a recipe for risk-adjusted investing success.