What is the All-Weather Portfolio?
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. It is a low-risk portfolio.
For the past 10 years, the All-Weather portfolio has returned 7.76 with a standard deviation of 7.31. Last year it returned 16.01%. The dividend yield is 1.55%. The 30-year return is 8.64%. Year to date the All-Weather portfolio has returned 6.04%%.
Article Contents
- How do you build the All-Weather portfolio with ETFs?
- What is the historical return of The All-Weather Portfolio?
- How do the All-Weather portfolio compare to the best portfolios?
- Who is Ray Dalio and Tony Robbins?
- Description of the All-Weather Portfolio
- Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio
- What is the asset allocation for Tony Robbins’ and Ray Dalio’s All-Weather portfolio?
- What are the advantages and disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio?
- Resources
- Suggestions for your next steps
- Summary
- Related questions
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.
Data was last updated on September 1, 2021 at 04:09 a.m. ET
| Name | Asset class count | Year to date | Return in 2020 | 10 year return | CAGR since 1989 (%) | Risk level | Expense ratio |
|---|---|---|---|---|---|---|---|
| Tony Robbins / Ray Dalio Portfolio | 5 | 6.04% | 16.01 | 7.76 | 8.64 | 1 | 0.16% |
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 2020 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Premium Portfolio |  | 21.59% | 18.29 | 13.84 | 10.77 | -37.63% |
| Premium Portfolio | | 12.73% | 18.11 | 8.63 | 11.14 | -44.87% |
| Premium Portfolio | | 18.42% | 19.7 | 12.84 | 10.49 | -32.77% |
| Premium Portfolio | | 23.29% | 3.19 | 8.52 | 10.59 | -36.46% |
| Premium Portfolio | | 22.84% | 3.66 | 8.62 | 10.48 | -36.35% |
| Premium Portfolio | | 20.56% | 21.03 | 13.78 | 10.83 | -37.00% |
| Premium Portfolio | | 23.03% | 8.7 | 11.56 | 10.65 | -35.26% |
| Premium Portfolio | | 19.10% | 7.48 | 8.39 | 10.64 | -37.91% |
| Premium Portfolio | | 22.72% | 5.36 | 10.88 | 11.23 | -35.43% |
| Premium Portfolio | | 25.26% | 3.42 | 10.21 | 10.47 | -40.85% |
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 decided to do something about the state of money management in America.
This is presented in his book, MONEY Master the Game: 7 Simple Steps to Financial Freedom. In that book, he goes through the steps to get you to be financially independent. Tony Robbins teamed up with fifty of the top finance and investment experts in the world. Ray Dalio is one of those top finance experts.
“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
Description of the All-Weather Portfolio
Together the dynamic duo presents a portfolio that they believe will do well in any market climate. The portfolio is called the All-Weather portfolio.
There is also an All-Seasons portfolio. The All-Seasons portfolio was developed by the Bridgewater hedge fund that Ray Dalio oversees. The All-Weather portfolio is a more simple portfolio than the All-Seasons portfolio.
By simple, we don’t mean less capable but a portfolio that the average investor can build.
“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
Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio
What is the asset allocation for Tony Robbins’ and Ray Dalio’s All-Weather portfolio?
Here is the asset allocation 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?
Advantages
- 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!
Disadvantages
- 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 portion may 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.
Resources
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.
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.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
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 may increase your returns.
If you want access to our high-performing portfolios then you need to take a look at the premium portfolios. This is a paid product that gives you the 59 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to have a shot at increasing the returns of your portfolio.
Summary
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.
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)
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.
