The State Street Bridgewater All Weather ETF (ALLW) offers retail investors a chance to follow the investment philosophy of Ray Dalio, the billionaire founder of Bridgewater Associates. Launched in March 2024, the fund has quickly amassed over $2 billion in assets under management, but its performance has lagged the broader market. This raises the question: is ALLW a worthwhile addition to your portfolio today?
What is the ALLW ETF?
ALLW is an actively managed ETF with an expense ratio of 0.85%, designed to replicate the risk-balancing approach of Dalio's famous All Weather fund. Unlike traditional passive funds, ALLW is rebalanced monthly to adjust to changing economic conditions. Its goal is to perform well across various market environments—whether stocks are rising, falling, or inflation is high.
The fund addresses a key weakness of the classic 60/40 portfolio (60% stocks, 40% bonds). In such a portfolio, stocks account for about 90% of the risk due to their higher volatility. ALLW diversifies across stocks, bonds, inflation-linked bonds, commodities, and gold to spread risk more evenly.
Portfolio Composition
As of the latest data, the largest holding is the SSI US GOV MONEY MARKET CLASS, which invests in short-term government bonds and makes up about 32% of the portfolio. This is followed by the State Street SPDR Portfolio S&P 500 ETF (SPYM) at 13%, which tracks the 500 largest U.S. companies, including Apple, Nvidia, and Micron. The fund also holds emerging market equities (like TSMC and Alibaba), gold, and a commodities index.
This mix gives ALLW a dividend yield of approximately 2.85%, which is higher than that of popular ETFs like SPY and QQQ, though not exceptionally high.
Performance Comparison
Since its inception in March 2024, ALLW has gained about 26%, but the S&P 500 has surged 40% over the same period. Even the Schwab U.S. Dividend Equity ETF (SCHD) has outperformed, with a 33% return. In 2025 so far, ALLW is up 9.19%, while SCHD has risen 27% and VOO (S&P 500 ETF) is up 13.3%.
This underperformance is not surprising given the fund's defensive tilt. The All Weather strategy is designed to reduce drawdowns during market downturns, but in a strong bull market, it tends to lag. For investors seeking maximum growth, this may be a drawback.
Is ALLW a Good Buy?
ALLW's short track record makes it difficult to assess its long-term potential. Its diversified approach could provide stability in turbulent markets, as seen in dividend stocks built to weather market storms. However, for those chasing high returns, the fund's underperformance relative to the S&P 500 is a concern.
Analysts often recommend investing in winners, and historically, broad equity indices like the Nasdaq 100 have delivered superior returns. Yet, ALLW's risk-balanced strategy may appeal to investors who prioritize capital preservation over aggressive growth. As always, past performance is not indicative of future results.
Investors should also consider the fund's expense ratio of 0.85%, which is higher than many passive ETFs. For a fund that aims to reduce risk, the cost may eat into returns over time.
In summary, ALLW offers a unique approach to portfolio diversification, but its performance since launch has been lackluster compared to the broader market. Whether it is a good buy depends on your investment goals and risk tolerance. If you seek a balanced, all-weather portfolio, ALLW might be worth considering, but if you're looking for growth, other options like the S&P 500's AI-driven rally may be more appealing.
This article is for informational purposes only and does not constitute financial advice.
