State Street, Bridgewater Bring Hedge Fund Strategy To New ETF

Investors looking for a strategy that can weather economic ups and downs now have a new option.

What Happened: State Street Global Advisors, in collaboration with Bridgewater Associates, has launched the SPDR Bridgewater All Weather ETF ALLW, a fund designed to provide steady returns across varying market conditions.

The expense ratio for ALLW is set at 0.85%. Historically, comprehending hedge fund strategies like those of Bridgewater has been challenging for retail investors, but this ETF provides a cost-effective and simpler way to gain exposure to their approach.

Also Read: Macquarie Expands ETF Lineup With HTAX, Targeting High-Yield Munis

A Strategy Rooted In Resilience

The ETF’s name is an homage to Bridgewater's so-called “All Weather” investment strategy, which aims to create a diversified portfolio that can withstand different economic cycles without requiring investors to time the market.

The ETF invests across global asset classes, including equities, bonds, and commodities, based on a model portfolio constructed by Bridgewater.

The next 10 years could look very different than the past due to dynamics like geopolitical tensions, heightened inflation, deglobalization, AI, and more,” Bridgewater's Co-Chief Investment Officer Karen Karniol-Tambour said. “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.”

Many investors are concerned over the heavy reliance on equities, which often account for over 90% of risk in traditional portfolios. The ALLW ETF seeks to create a more balanced risk exposure by diversifying into multiple asset classes.

“A well-diversified portfolio is crucial for long-term wealth accumulation, and ALLW helps investors achieve that resilience,” State Street Global Advisors Chief Business Officer Anna Paglia said.

State Street Global Advisors had introduced the first U.S.-listed ETF over 30 years ago. With ALLW, the firm continues to bring institutional-level investment strategies to a broader audience. The ETF follows in the footsteps of other successful SPDR funds, such as the SPDR DoubleLine Total Return ETF TOTL and the SPDR Blackstone Senior Loan ETF SRLN.

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