Build Bogleheads Three Fund Portfolio With ETFs
What is the Three Fund Portfolio? The three-fund portfolio is a lazy portfolio that consists of …
What is the All-Weather Portfolio?
The All-weather portfolio is a portfolio designed by Ray Dalio and Tony Robbins.
The Ray Dalio All-Weather portfolio is built with five ETFs. The portfolio is exposed to 55% bonds, 30% stocks, 7.5% commodities, and 7.5% gold.
Article contents
How do you build the All-weather portfolio with ETFs?
Here is how you build the All-Weather Portfolio with ETFs.
- 30.00% US Total Stock Market(VTI)
- 40.00% Long Term Treasuries(TLT)
- 15.00% Intermediate-Term Treasuries (VGIT)
- 7.50% Commodities (DBC / GSG)
- 7.50% Gold (IAU)
The letters in brackets denote the stock symbol for the recommended ETF. You can look up the symbols at your stockbroker. You can see a listing of all the ETFs we recommend on this page.
What is the historical return of The All-Weather Portfolio?
Here is the historical return for the All-Weather Portfolio.
Portfolio data was last updated on 11th of November 2022, 11:40 ET
| Name | Year to date | Return in 2021 | 10 year return | CAGR since 1989 (%) | STDEV | Draw Down | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|---|
| Tony Robbins / Ray Dalio Portfolio | -21.17 | 8.27 | 7.23 | 8.63 | 7.31 | -3.71% | 0.16% | 1.55 |
| All Seasons Portfolio | -21.37 | 7.29 | 6.44 | 8.33 | 7.18 | -4.03% | 0.16% | 1.73 |
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
How do the All-Weather portfolio compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
| Name | See Portfolio | Year to date | Return in 2021 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Premium Portfolio |  | -20.97 | 32.14 | 13.2 | 11.81 | -35.43% |
| Premium Portfolio | | -18.7 | 28.78 | 16.52 | 11.28 | -37.63% |
| Premium Portfolio | | -19.64 | 25.67 | 16.29 | 11.25 | -37.00% |
| Premium Portfolio | | -23.99 | 13.49 | 11.03 | 11.21 | -44.87% |
| Premium Portfolio | | -12.0 | 28.17 | 14.47 | 11.14 | -35.26% |
| Premium Portfolio | | -14.9 | 24.75 | 11.85 | 10.99 | -36.46% |
| Premium Portfolio | | -14.79 | 29.02 | 13.15 | 10.99 | -40.85% |
| Premium Portfolio | | -20.6 | 20.7 | 11.45 | 10.93 | -37.91% |
| Premium Portfolio | | -15.12 | 24.51 | 11.87 | 10.88 | -36.35% |
| Premium Portfolio | | -19.38 | 22.92 | 14.99 | 10.85 | -32.77% |
Who is Ray Dalio and Tony Robbins?
Tony Robbins is a renowned passionate motivational speaker.
Ray Dalio is the CEO of Bridgewater which is the largest hedge fund in the world.
Tony Robbins has the uncanny ability to get you fired up about anything.
He got me fired up about the work he did with Ray Dalio on the All-Weather portfolio.
In 2009 Tony Robbins decidedto do something about the state of money management in America.
This is presented in his book,
“Most people overestimate what they can do in a year, and they massively underestimate what they can accomplish in a decade or two. The fact is:you are not a manager of circumstance, you’re the architect of your life’s experience.”
– Tony Robbins
What exactly is the All-Weather portfolio?
The All-Weather portfolio is a portfolio created by Ray Dalio and Tony Robbins. It is designed so it can withstand any economic turmoil.
The portfolio draws upon the work by Ray Dalio at his hedgefund Bridgewater where he pioneered the All-Seasons portfolio strategy.
“If you can’t successfully do something, don’t think you can tell others how it should be done”
– Ray Dalio
Both are portfolios that pay homage to the Permanent Portfolio by Harry Browne. You can read more about the Permanent Portfolio in The Permanent Portfolio: Do Well No Matter What Happens
How does the All-Weather portfolio work?
The All-Weather portfolio works by allocating to different ETFs that rise or fall independent from each other depending on the economic climate. The All-Weather portfolio will therefore not experience wild swings in value.
Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio
Asset allocation for the All-Weather portfolio
What is the asset allocation for Tony Robbins’ and Ray Dalio’s All-Weather portfolio?
Here is the asset allocation along with ETFs for Tony Robbins’ and Ray Dalio’s All-Weather portfolio.
- 30.00% US Total Stock Market (VTI)
- 40.00% Long Term Treasuries (TLT)
- 15.00% Intermediate-Term Treasuries (VGIT)
- 7.50% Commodities (DBC / GSG)
- 7.50% Gold(IAU)
What are the advantages and disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio?
Here are the advantages of Tony Robbins / Ray Dalio’s All-Weather portfolio
- The portfolio is based on Bridgewater All-Seasons strategy, a hugely successful investing strategy used by the world’s largest hedge fund.
- The All-Weather investment portfolio is constructed by Ray Dalio who is maybe the most influential investment expert in the world.
- The portfolio holds asset classes with low correlation to each other. Low correlation means that when one asset class goes up, another goes down.
- The All-Weather investment portfolio is a low-risk portfolio. The drawdown of the portfolios is very small compared to the broader market.
- Tony Robbins and Ray Dalio has researched the portfolio thoroughly, and they do not do anything half-heartedly!
Here are the disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio
- The portfolio has lower returns than the S&P 500, mainly because of the higher bond portion of the portfolio.
- The portfolio has a risky bond allocation. The bond portionmay not do well in 2021 because of a rising rate environment.
- The All-Weather investment portfolio may not give you high enough returns so that you can reach your financial goals.
Where can I learn more about the All-Weather portfolio?
The first thing you should do is pick up Tony Robbins’ book Money: Master the Game: 7 Simple Steps to Financial Freedom. In this book he presents the All-Weather portfolio. He also details solutions to many other personal finance issues.
Tony Robbins - Money: Master the Game: 7 Simple Steps to Financial Freedom
Shortly after the book release, Tony Robbins published Unshakeable: Your Financial Freedom Playbook. This is a condensed version of Money: Master the Game.
It is well worth your time. Tony Robbins writes with passion and has your best interests at heart.
Tony Robbins - Unshakeable: Your Financial Freedom Playbook
The last resource that I want to share is the best-selling book by Ray Dalio. It is filled with a lot of wisdom. It won’t make a billionaire like Ray Dalio, but it will give you insights into his thinking.
Ray Dalio - Principles: Life and Work
Summing up
Tony Robbins / Ray Dalio’s portfolio is a portfolio built on the foundation of the successful investing strategy by Ray Dalio. It should do well in all market climates but may to too bond heavy and may not give you the returns that you require.
The book by Tony Robbins is fantastic and if you don’t intend to implement the portfolio I encourage you to pick up his book as it is an eye-opener, especially if you are new to investing and personal finance.
Suggestions for your next steps
Finding the right portfolio is hard. Maintaining your portfolio is also daunting.
If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.
This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity low-cost for you to get more money from your investment portfolios. We think it’s a no-brainer. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.
You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
Related questions
What is the 3 fund portfolio?
The three-fund portfolio is a simple portfolio, that you can build with three ETFs. The three ETF portfolio contains the following:
- US Stocks (VTI).
- International Stocks (VEU).
- US Bond Market (BND).
