State Street Global Advisors, the asset management business of State Street Corporation, announced in partnership with Bridgewater Associates, the launch of the SPDR^® Bridgewater^® All Weather^® ETF (ALLW), an actively managed, diversified global multi-asset allocation ETF with an investment approach designed with the goal of generating consistent returns across different economic environments.

The SPDR Bridgewater All Weather ETF leverages Bridgewater’s deep macro understanding and portfolio construction expertise across a global mix of diversified assets. Almost 30 years ago, Bridgewater created the “All Weather approach” to managing portfolios, which focuses on preserving and compounding wealth without needing to time markets.

“For more than three decades, ETFs have eliminated barriers to entry across a range of asset classes and strategies,” said Anna Paglia, chief business officer at State Street Global Advisors. “Our launch of ALLW is a testament to our commitment to leveling the playing field for all investors to reach their financial goals and ‘all weather’ diversification is one way we’re helping them get there. We’re thrilled to be partnering with Bridgewater, a firm with a 50-year heritage and a history of managing the investments of some of largest investors in the world, to broaden access to their expertise.”

The SPDR Bridgewater All Weather ETF (ALLW) invests based on a daily model portfolio provided by Bridgewater, ALLW’s investment sub-adviser, that is constructed based on the firm’s proprietary All Weather asset allocation approach. The model portfolio provided by Bridgewater allocates assets based on Bridgewater’s views of cause-effect relationships—specifically how those asset classes react to shifts in growth and inflation. Based on Bridgewater’s investment recommendations, SSGA Funds Management. Inc. (“SSGA FM”), ALLW’s investment adviser, purchases and sells investments for ALLW. SSGA FM seeks to implement Bridgewater’s investment recommendations, but may change ALLW’s investment allocation at any time. ALLW may invest across a range of global asset classes, such as domestic and international equities, nominal and inflation-linked bonds, and commodity exposures.

“We’ve consistently focused on how to make our clients’ portfolios more resilient to a wider range of economic outcomes. The next 10 years could look very different than the past due to dynamics like geopolitical tensions, heightened inflation, deglobalization, AI, and more. Predicting exactly how this will play out will be extremely difficult, but all investors have a chance to prepare better for what’s ahead. We’re excited that the launch of ALLW gives us the ability to help a broader set of investors do exactly that,” said Karen Karniol-Tambour, co-Chief Investment Officer at Bridgewater.

Today, many investors hold undiversified portfolios, where risk is primarily concentrated in a single asset class, specifically equities. For example, equities drive over 90% of the traditional 60/40 portfolio’s overall risk.¹ And portfolios that concentrate risk in a single asset class are unbalanced, inheriting the asset class’s boom/bust profile, as well as its vulnerability to macroeconomic shifts. “We believe a resilient, well-balanced diversified portfolio to prepare for a wide range of economic environments can be critical for investors to achieve their goal of wealth accumulation,” said Paglia.

Source: State Street