ETFs Build a Diversified Portfolio
Re: ETFs Build a Diversified Portfolio
SPDR Bridgewater All Weather ETF (ALLW)
Some multi-allocation ETFs offer built-in diversification. A great example is the newly launched ALLW, which emulates Bridgewater Associates' and Ray Dalio's famous "All Weather" hedge fund. This ETF's unique "risk parity" allocation strategy is designed to remain resilient across different economic cycles.
ALLW uses derivatives like swaps and futures to gain exposure to 72% global bonds, 43% global equities, 37% commodities and 32% inflation-linked bonds. These allocations add up to more than 100%, meaning that the ETF is inherently leveraged. However, this does come at a higher 0.85% expense ratio.
Some multi-allocation ETFs offer built-in diversification. A great example is the newly launched ALLW, which emulates Bridgewater Associates' and Ray Dalio's famous "All Weather" hedge fund. This ETF's unique "risk parity" allocation strategy is designed to remain resilient across different economic cycles.
ALLW uses derivatives like swaps and futures to gain exposure to 72% global bonds, 43% global equities, 37% commodities and 32% inflation-linked bonds. These allocations add up to more than 100%, meaning that the ETF is inherently leveraged. However, this does come at a higher 0.85% expense ratio.