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There are a handful of new ETF's that are not me too or highly speculative. This has been trading for 2 days with large volume. Bridgewater is a top quality hedge fund with a long history. It appears they are not charging hedge fund fees. Might buy a starter position next week to see how it trades.
ALLW may invest across a range of global liquid asset classes, such as: 1) Domestic and international equities 2) Nominal and inflation-protected bonds 3) Commodities directly and/or through the use of derivatives.
Mitch, thanks for the 'heads up'. First thing I did when I saw your post was to visit their website, to check out how the fund has deployed capital..
their website shows 181% allocated (?) I don't see any mention of how exactly they are managing that feat. Are they shorting cash? I've no idea. The website doesn't seem to say... Whoever set up their website should have that easily identifiable. I see too, its showing its price at a 0.45% premium as of 3/6 === which is not the last trading day. So its 'stale' info. An ETF's calling card is its webpage. This webpage seems to be a 'work inprogress.
The ER is 0.85% It looks like their big stock, bond holdings are other SPDR ETFs.. which are ETFs any DIY'er can buy themselves without paying ALLW for the 0.85% management.
Their fact sheet lays out the investment framework, which includes equities, nominal bonds, TIPs, commodities, and gold -- all in different admixtures, depending on what growth and inflation are doing.. Whether ALLW adds value is dependent on how well they react at inflection points in capital markets.
Just my 'first take'. Maybe they will prove themselves over the ensuing months.
I think Mr. Dalio is likely playing golf these days, having recently handed over the reigns at Bridgewater. Probably rubbing elbows with our grand leader. They have both gone broke at various times.
There’s not a lot of information out there yet. Much of what is out is highly promotional in tone. FT recently published 2 articles. The second is more enlightening. Search query might possibly help folks get around paywall.
FT classifies the proposed ETF as “risk parity”. In theory these types of funds should remain stable in various market environments. But watching them in ‘22 that wasn’t always the case. Some held up well. Some suffered steep losses. They are hard to analyze - can appear very similar on paper. Best of the lot IMHO is PRPFX. Held it for couple decades but sold it several months ago to lock in a 28% YTD return. That’s way beyond what I believe it can produce / average longer term.
I’d be inclined to give the new Bridgwater fund a spot in my diversified portfolio, but do not currently have an opening for it. There’s been a lot of good and bad said about Ray Dalio. Suspect both sides are correct in their appraisals.
This one definitely on my watch list. M* showing 2.25% yield?? Leverage is a little confusing tho. Drawdowns will be interesting. This ETF should have some back testing data. Not a new concept.
I added a small position of ALLW to our portfolio. This ETF is similar to Dalio's hedge fund that he's been managing for several decades that has a very good track record, especially on a risk-adjusted basis.
Comments
1) Domestic and international equities
2) Nominal and inflation-protected bonds
3) Commodities directly and/or through the use of derivatives.
It appears to be leveraged.
First thing I did when I saw your post was to visit their website, to check out how the fund has deployed capital..
their website shows 181% allocated (?) I don't see any mention of how exactly they are managing that feat. Are they shorting cash? I've no idea. The website doesn't seem to say... Whoever set up their website should have that easily identifiable. I see too, its showing its price at a 0.45% premium as of 3/6 === which is not the last trading day. So its 'stale' info. An ETF's calling card is its webpage. This webpage seems to be a 'work inprogress.
The ER is 0.85% It looks like their big stock, bond holdings are other SPDR ETFs.. which are ETFs any DIY'er can buy themselves without paying ALLW for the 0.85% management.
Their fact sheet lays out the investment framework, which includes equities, nominal bonds, TIPs, commodities, and gold -- all in different admixtures, depending on what growth and inflation are doing.. Whether ALLW adds value is dependent on how well they react at inflection points in capital markets.
Just my 'first take'. Maybe they will prove themselves over the ensuing months.
There’s not a lot of information out there yet. Much of what is out is highly promotional in tone. FT recently published 2 articles. The second is more enlightening. Search query might possibly help folks get around paywall.
Brave Search Results / 2 FT Articles
FT classifies the proposed ETF as “risk parity”. In theory these types of funds should remain stable in various market environments. But watching them in ‘22 that wasn’t always the case. Some held up well. Some suffered steep losses. They are hard to analyze - can appear very similar on paper. Best of the lot IMHO is PRPFX. Held it for couple decades but sold it several months ago to lock in a 28% YTD return. That’s way beyond what I believe it can produce / average longer term.
I’d be inclined to give the new Bridgwater fund a spot in my diversified portfolio, but do not currently have an opening for it. There’s been a lot of good and bad said about Ray Dalio. Suspect both sides are correct in their appraisals.