Ray Dalio All Weather Portfolio

Background

The All Weather Portfolio was developed by Ray Dalio, founder of Bridgewater Associates, one of the world’s largest hedge funds. Dalio created the All Weather strategy as part of his broader effort to understand how different assets behave under varying economic conditions. The portfolio embodies his central principle that investors should balance risk, not just capital, across asset classes to achieve more consistent returns. Originally designed for institutional investors, the All Weather concept has since been adapted for individuals seeking a simple, diversified allocation that can perform through both prosperous and turbulent markets.

Primary Goals

The primary goal of the All Weather Portfolio is to deliver stable, inflation-adjusted returns across all economic environments—growth, decline, inflation, and deflation. The approach is based on Dalio’s “risk parity” philosophy, which equalizes the contribution of each asset class to overall portfolio risk rather than focusing on dollar-weighted exposure. This balance aims to prevent any single market condition from dominating performance.

The strategy is constructed to respond predictably to the four major macroeconomic regimes:

• Rising growth: Stocks benefit from expanding corporate profits and economic activity.
• Falling growth or deflation: Long-term government bonds appreciate as interest rates decline and investors seek safety.
• Rising inflation: Commodities and gold tend to increase in value as real assets preserve purchasing power.
• Falling inflation or stability: Intermediate-term bonds perform well as inflation expectations moderate and yields stabilize.

The secondary goal of the All Weather Portfolio is investor consistency—to create a structure that can be held through all market cycles, reducing the temptation to time markets or overreact to short-term volatility.

Construction

The All Weather Portfolio allocates assets across five key categories that represent the main drivers of returns in the global economy. Each component is chosen to perform well in specific conditions, collectively providing balance between growth and inflation-sensitive assets:

• U.S. equities: Provide exposure to corporate growth and innovation, driving returns during periods of economic expansion.
• Long-term Treasury bonds: Offer strong protection in recessions and deflationary periods, typically rising when equities decline.
• Intermediate-term Treasury bonds: Add income and stability, reducing volatility while complementing long-term bonds.
• Commodities: Serve as a hedge against inflation and rising input costs, benefiting from economic activity and resource demand.
• Gold: Protects against inflation, currency depreciation, and financial instability, acting as a long-term store of value.

A representative allocation often used to model the All Weather Portfolio includes approximately 30% U.S. stocks, 40% long-term Treasury bonds, 15% intermediate-term Treasury bonds, 7.5% commodities, and 7.5% gold. This composition reflects Dalio’s goal of achieving durable, risk-balanced performance—an approach designed to “weather” any economic climate.

Performance & Returns

Total Return by Period

Updated: Nov 07, 2025

1 Day	1 Week	28 Days	90 Days	1 Year	3 Years	5 Years	10 Years
0.05%	-0.75%	0.52%	4.26%	6.72%	25.71%	8.45%	52.88%

Total Return by Year

2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
5.10%	9.93%	-19.34%	7.98%	16.13%	18.37%	-2.89%	11.64%	6.64%	-3.19%

10 Year Performance

Total Return	Annualized Return	CAGR	Max Drawdown	Sharpe Ratio	Sortino Ratio	Calmar Ratio	Ulcer Index
52.88%	4.63%	4.35%	-39.25%	0.19	0.25	0.12	0.09

Asset Allocation

Symbol	Description	Weight %
VTI	Vanguard Total Stock Market ETF	30.0
TLT	iShares 20+ Year Treasury Bond ETF	40.0
IEF	iShares 7-10 Year Treasury Bond ETF	15.0
DBC	Invesco DB Commodity Index Tracking Fund	7.5
GLD	SPDR Gold Shares	7.5

Total Return Graph

Comparisons with Other Portfolios