Ray Dalio's "All Weather Portfolio"
A classic fund built to weather all markets, splitting the fund’s risk exposure between 4 types of economic environments
Fund
21.01%
vs
Benchmark
78.28%
* 1-year, 5-year, and 10-year performance shown below is a rolling measure, dynamically updated weekly. For example, 1-year performance reflects returns over the last 365 days, measured from the right-most datapoint in graph. Since inception reflects returns from left-most datapoint on graph.
** Performance data is calculated using the average returns of all accounts with more than $100 invested in this strategy.
** Performance data is calculated using the average returns of all accounts with more than $100 invested in this strategy.
When this fund underperforms
When this fund outperforms
Fund Holdings
Fund details
Stats
Max draw down (of range)
Daily Sharpe (of range)
Daily Volatility (of range)
Monthly Volatility (of range)
48.00%
Correlation to SPY (total)
6.19%
1-year performance
N/A
5-year performance
N/A
10-year performance
21.01%
Inception performance
Description
The All Weather Fund is base on ideas by Bridgewater founder Ray Dalio. It is generally considered a low-risk fund, due to its large exposure to bonds, as well as exposure to asset classes that are uncorrelated with equities. Its goal is to weather all market environments - higher inflation than expected (rising prices), lower than expected inflation (or increasing deflation), higher than expected economic growth, and lower than expected economic growth.
Key Considerations
This portfolio emphasizes broad-market diversification, and especially protection from risk in traditionally volatile asset classes like stocks (crypto isn't even near this portfolio) -- it's a great addition to pare down the volatility of an otherwise-risky selection of portfolios
When compared to the US market (S&P 500), this portfolio has lower annual returns, but it has a higher Sharpe Ratio, aka a higher risk-adjusted return. This can be significant in case you want high stable returns but aren't willing/able to stomach losses like the S&P 500 or more volatile portfolios will give you in downturns
The COVID pandemic and Great Recessions were almost a blip for this portfolio -- it lost about 13% in 2008 when the S&P had lost almost 4x that.
Underperforms S&P in annual return. The larger bond allocation means it underperforms during periods of high growth. This strategy invests in fractional shares when available. When not available, it will invest in the nearest (lower) whole number of shares. Please note that this number may be 0 if your investment in this strategy is sufficiently low, meaning our investment strategy advertised returns will be different from your returns.