All Weather (Dalio)
StaticProconservativeBased on research by Ray Dalio · Dalio, R. / Bridgewater Associates. The All Weather Story (2012)
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched Jan 2012About this Strategy
Designed for all economic seasons: 30% stocks, 55% bonds, 15% commodities. The retail version of Bridgewater's risk-parity approach.
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 30% to SPY (S&P 500)
- 2Allocate 40% to TLT (20+ Year Treasury Bonds)
- 3Allocate 15% to IEI (3-7 Year Treasury Bonds)
- 4Allocate 7.5% to GLD (Gold)
- 5Allocate 7.5% to DBC (Broad Commodities)
- 6Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Ray Dalio
Dalio, R. / Bridgewater Associates. The All Weather Story (2012)
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 1
- Risk Category
- conservative
- Tags
- static, all-weather
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 5 ETFs
- Equity Allocation
- 30%
- Bond Allocation
- 55% (40% long-term + 15% intermediate)
- Commodity Allocation
- 15% (7.5% gold + 7.5% broad commodities)
- Philosophy
- Risk parity across economic regimes
- Risk Level
- Conservative to Moderate
Asset Classes
All Weather (Dalio) at a glance
All Weather (Dalio) is a fixed-allocation portfolio by Ray Dalio across US Equity, Long-Term Treasuries, Intermediate Treasuries, Gold, rebalanced annual. Backtested 1971-12-31 to 2026-05-20 (54.4 years): 7.7% CAGR, 1.10 Sharpe, -22.5% max drawdown, 6.8% volatility.
- Type
- Fixed Allocation
- Author
- Ray Dalio
- Rebalancing
- Annual
- Risk
- Conservative
- Period
- 1971-12-31 to 2026-05-20
- CAGR
- 7.7%
- Sharpe
- 1.10
- Max Drawdown
- -22.5%
- Volatility
- 6.8%
All Weather (Dalio) — Fixed Allocation Portfolio
The All Weather portfolio was designed by Ray Dalio and Bridgewater Associates to perform well across all economic environments. The core insight is risk parity: each economic regime should be equally balanced in terms of risk contribution. The 55% bond allocation provides the deflation/recession hedge, 30% equities cover growth, and 15% commodities (gold + broad) protect against inflation.
Backtest Performance (1971-12-31 to 2026-05-20)
| Metric | All Weather (Dalio) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 7.7% |
| Maximum Drawdown | -22.5% |
| Sharpe Ratio | 1.10 |
| Sortino Ratio | 1.46 |
| Annualized Volatility | 6.8% |
| Calmar Ratio | 0.34 |
| Total Return | 5519.1% |
| Backtest Period | 54.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- conservative
- Variants
- 1
- Author
- Ray Dalio
- Source
- Dalio, R. / Bridgewater Associates. The All Weather Story (2012)
Asset Classes
- US Equity
- Long-Term Treasuries
- Intermediate Treasuries
- Gold
- Commodities
Categories
Track All Weather (Dalio) in Your Portfolio
Sign up for BestFolio to get monthly rebalancing signals, blend strategies into custom portfolios, and receive alerts when allocations change.
Related strategies
Related research
- Which TAA Strategies Actually Work in Europe: A UCITS Substitution GuideEuropean investors hit a wall the moment they try to run a US TAA strategy through IBKR: PRIIPs blocks AVUV, DBC, and most US-domiciled ETFs from retail purchase. The substitutes exist on XETRA and LSE, but they're not all equal. Some strategies translate cleanly (HAA, GEM, Permanent Portfolio). Others lose 50 to 100bps of CAGR per year through methodology drift on the small-cap-value sleeve. A few don't really translate at all. Here's the working playbook, split into three tiers.
- Golden Butterfly vs All Weather vs 60/40: Which Fixed Portfolio Wins?Three of the most popular fixed-allocation portfolios compared head-to-head. We break down historical performance, drawdowns, and who each portfolio is actually best for.