How to Invest Like Ray Dalio With This All-Weather ETF

If you have ever gone down a macro investing rabbit hole, you have probably come across Ray Dalio. He founded Bridgewater Associates, which grew into the largest hedge fund in the world. He is a big-picture thinker, not just a stock-picker. He writes about debt cycles, inflation, empires rising and falling, and how economies move in long waves.

In Principles for Dealing With the Changing World Order, he explains what he calls the “Big Cycle.” The idea is simple: countries borrow too much, print too much money, currencies weaken, and eventually the balance of power shifts. Growth rises and falls. Inflation rises and falls. And most investors get blindsided because they are positioned for only one environment.

Dalio’s solution was the “All Weather” portfolio. Instead of betting on one outcome, build something that can survive almost anything. Now you do not need millions of dollars or hedge fund access to try it.

You can buy the SPDR Bridgewater All Weather ETF (NASDAQ:ALLW) in a regular brokerage account. Here is the simplified breakdown.

What is ALLW?

ALLW is built on something called risk parity. That sounds complicated, but really isn’t if you take some time to think it over.

A normal portfolio like 60% stocks and 40% bonds might look balanced. But most of the risk still comes from stocks. If stocks crash, you feel it, while the bonds don’t do much. Risk parity tries to balance risk, not dollars.

Instead of loading up on stocks and a sprinkling in bonds, the strategy spreads exposure across four major building blocks: stocks for growth, government bonds for slowdowns, inflation-linked bonds for rising prices, and commodities for supply shocks.

Then it uses a bit of leverage to scale the whole thing up so returns are not too shabby. The result is a portfolio that is designed to chug along steadily whether growth is rising or falling, or inflation is rising or falling.

Since its launch in 2025, ALLW has behaved the way you would expect. It has not shot the lights out like a pure stock fund, but it has delivered smoother, more balanced performance compared to traditional stock-heavy portfolios.

In fact, year-to-date as of February 20, 2026, ALLW is up 7.4% while the S&P 500 Index has struggled at just 0.74%.

What I like about ALLW

First, you are getting institutional thinking in a simple wrapper. You do not need to understand macro cycles. The model does the work.

Second, it is diversified in a real way. You are not just holding global stocks. You are holding many uncorrelated assets that respond differently to different economic shocks.

Third, it is hands-off. If you are the type of investor who does not want to rebalance or guess what the economy will do next year, ALLW solves that problem in one ticker.

If your goal is durability instead of maximum upside, that is powerful. This makes ALLW especially attractive for higher net worth investors.

What I dislike about ALLW

The biggest issue is cost. The expense ratio is 0.85%. That is high compared to plain index ETFs. You are paying for complexity and Bridgewater’s intellectual framework.

Second, leverage is involved. The portfolio exposure is larger than 100%, at around 188% right now. While risk is balanced, leverage always increases sensitivity to extreme scenarios where everything falls together.

Finally, taxes can be messy in taxable accounts because of capital gains distributions. This is better suited for a registered account like a registered retirement savings plan (RRSP), where you can avoid the 15% foreign withholding tax.

ALLW is not for everyone

If you are young, comfortable with volatility, and just want maximum long-term growth, a low-cost global equity ETF will probably outperform ALLW in raw returns over decades.

But if you want something that is designed to survive recessions, inflation spikes, and unexpected macro shocks without constant tinkering, ALLW is one of the cleaner “all-weather” executions available.

ALLW represents a different investing philosophy. Instead of asking, “What will win next year?” it asks, “What can survive no matter what happens?” For many investors, that mindset is worth considering.

The post How to Invest Like Ray Dalio With This All-Weather ETF appeared first on The Motley Fool Canada.

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Fool contributor Tony Dong has positions in SPDR Bridgewater All Weather ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.