Build The All-Weather Portfolio, Tony Robbins And Ray Dalio With ETFs

What is the All-Weather Portfolio?

The All-weather portfolio is a portfolio designed by Ray Dalio and Tony Robbins.

The Ray Dalio All-Weather portfolio is built with five ETFs. The portfolio is exposed to 55% bonds, 30% stocks, 7.5% commodities, and 7.5% gold.

How do you build the All-weather portfolio with ETFs?

Here is how you build the All-Weather Portfolio with ETFs.

• 30.00% US Total Stock Market (VTI)
• 40.00% Long-Term Treasuries (TLT)
• 15.00% Intermediate-Term Treasuries (VGIT)
• 7.50% Commodities (DBC / GSG)
• 7.50% Gold (IAU)

The letters in brackets denote the stock symbol for the recommended ETF. You can look up the symbols at your stockbroker. You can see a listing of all the ETFs we recommend in this article.

What is the historical return of The All-Weather Portfolio?

Here is the historical return for the All-Weather Portfolio.

Portfolio data was last updated on 11th of August 2023, 08:35 ET

Here is what the table is showing you

Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.

10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.

CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.

Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.

Yield: This is the expected dividend yield of the portfolio.

Please note that past performance is not a guarantee of future returns.

How does the All-Weather portfolio compare to the best portfolios?

Below you can see the returns of the best portfolios we benchmarked.

Who is Ray Dalio ?

Ray Dalio is an American billionaire investor, hedge fund manager, and philanthropist. He is the founder of Bridgewater Associates, one of the world’s largest hedge funds, with over $100 billion in assets under management. Dalio is considered one of the most successful investors of all time, with a net worth of over $15 billion, according to Forbes.

Dalio was born in 1949 in New York City and began his career on Wall Street in the 1970s. He founded Bridgewater Associates in 1975 and has since grown the company into one of the most successful hedge funds in the world. Bridgewater Associates is known for its systematic approach to investing, using algorithms and computer models to make investment decisions.

Dalio is also known for his philosophy of “radical transparency” within his company, which encourages open communication and honesty among employees. He has authored several books, including “Principles: Life and Work,” which outlines his approach to life and business.

In addition to his business success, Dalio is also known for his philanthropic efforts. He and his wife, Barbara, have donated millions of dollars to education and health causes through the Dalio Foundation.

Who is Tony Robbins?

Tony Robbins is an American author, speaker, and life coach. He is widely recognized as one of the most prominent personal development and motivational speakers in the world.

Robbins was born in 1960 and grew up in California. He began his career promoting seminars for self-help guru Jim Rohn, and later went on to develop his own programs and products aimed at helping individuals achieve personal and financial success.

Robbins' approach to personal development is based on the idea that success is achieved through a combination of psychology, physiology, and communication. He has authored several books, including “Awaken the Giant Within” and “Unlimited Power,” which have sold millions of copies worldwide.

Robbins is also known for his live events, where he delivers high-energy seminars to thousands of attendees. His events feature a combination of motivational speaking, coaching, and interactive exercises aimed at helping individuals break through limiting beliefs and achieve their goals.

In addition to his work as a personal development expert, Robbins has also been involved in philanthropy. He founded the Anthony Robbins Foundation, which provides support and resources to organizations and individuals in need around the world.

Tony Robbins has the uncanny ability to get you fired up about anything.

He got me fired up about the work he did with Ray Dalio on the All-Weather portfolio.

In 2009 Tony Robbins decided to do something about the state of money management in America.

This is presented in his book,

“Most people overestimate what they can do in a year, and they massively underestimate what they can accomplish in a decade or two. The fact is:you are not a manager of circumstance, you’re the architect of your life’s experience.”

– Tony Robbins

What is the All-Weather portfolio?

The All-Weather portfolio is an investment strategy developed by Ray Dalio, the founder of Bridgewater Associates, one of the world’s largest hedge funds. It is designed to perform well in all economic conditions, providing investors with a high level of stability and diversification.

The All-Weather portfolio is based on a simple asset allocation model, with equal weighting across four asset classes:

Stocks: The portfolio invests in a broad-based stock market index fund to provide growth and potential capital appreciation.

Bonds: The portfolio invests in intermediate-term U.S. Treasury bonds to provide stability and income.

Gold: The portfolio invests in physical gold or gold bullion, which is considered a safe haven asset that can provide a hedge against inflation and economic uncertainty.

Commodities: The portfolio invests in a broad-based commodities index fund to provide diversification and protection against inflation.

The idea behind the All-Weather portfolio is that each of these asset classes has unique characteristics that make them well-suited for a particular economic environment. For example, stocks tend to perform well in periods of economic growth, while bonds and gold may perform better during periods of economic uncertainty.

By diversifying across these asset classes, the All-Weather portfolio seeks to provide a stable, long-term return with minimal risk. While the portfolio may not generate the highest returns during strong bull markets, it is designed to provide consistent returns over the long term, regardless of market conditions.

The portfolio draws upon the work by Ray Dalio at his hedgefund Bridgewater where he pioneered the All-Seasons portfolio strategy.

“If you can’t successfully do something, don’t think you can tell others how it should be done”

– Ray Dalio

Both are portfolios that pay homage to the Permanent Portfolio by Harry Browne. You can read more about the Permanent Portfolio in The Permanent Portfolio: Do Well No Matter What Happens

How does the All-Weather portfolio work?

One of the main advantages of an All-Weather portfolio is its diversification. By spreading investments across multiple asset classes, the portfolio reduces the risk of a single asset class dragging down returns. This can result in more consistent returns over the long term 1. It is also designed to be low risk and easy to implement.

Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio

What is the asset allocation for Tony Robbins’ and Ray Dalio’s All-Weather portfolio?

Here is the asset allocation along with ETFs for Tony Robbins’ and Ray Dalio’s All-Weather portfolio.

• 30.00% US Total Stock Market (VTI)
• 40.00% Long-Term Treasuries (TLT)
• 15.00% Intermediate-Term Treasuries (VGIT)
• 7.50% Commodities (DBC / GSG)
• 7.50% Gold (IAU)

What are the advantages and disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio?

Here are the advantages of Tony Robbins / Ray Dalio’s All-Weather portfolio

• The portfolio is based on Bridgewater’s All-Seasons strategy, a hugely successful investing strategy used by the world’s largest hedge fund.

• The All-Weather investment portfolio is constructed by Ray Dalio who is maybe the most influential investment expert in the world.

• The portfolio holds asset classes with low correlation to each other. Low correlation means that when one asset class goes up, another goes down.

• The All-Weather investment portfolio is a low-risk portfolio. The drawdown of the portfolios is very small compared to the broader market.

• Tony Robbins and Ray Dalio has researched the portfolio thoroughly, and they do not do anything half-heartedly!

Here are the disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio

• The portfolio has lower returns than the S&P 500, mainly because of the higher bond portion of the portfolio.
• The portfolio has a risky bond allocation. The bond portionmay not do well in 2021 because of a rising rate environment.
• The All-Weather investment portfolio may not give you high enough returns so that you can reach your financial goals.

Where can I learn more about the All-Weather portfolio?

The first thing you should do is pick up Tony Robbins' book Money: Master the Game: 7 Simple Steps to Financial Freedom. In this book he presents the All-Weather portfolio. He also details solutions to many other personal finance issues.

Shortly after the book’s release, Tony Robbins published Unshakeable: Your Financial Freedom Playbook. This is a condensed version of Money: Master the Game.

It is well worth your time. Tony Robbins writes with passion and has your best interests at heart.

The last resource that I want to share is the best-selling book by Ray Dalio. It is filled with a lot of wisdom. It won’t make a billionaire like Ray Dalio, but it will give you insights into his thinking.

Is the All-Weather portfolio better than the permanent portfolio?

The Permanent Portfolio is designed to provide a high level of safety and stability, with a focus on preserving wealth and providing a hedge against inflation. It may be a good choice for conservative investors who are looking to protect their assets over the long term.

The All-Weather portfolio, on the other hand, is designed to perform well in all economic conditions, with a focus on generating consistent returns over the long term. It may be a good choice for investors who are willing to take on a moderate level of risk in exchange for potential higher returns.

Ultimately, the best portfolio for an individual investor will depend on their personal circumstances, financial goals, and risk tolerance. It’s important to do your research and consult with a financial advisor before making any investment decisions.

Summing up

Tony Robbins / Ray Dalio’s portfolio is a portfolio built on the foundation of the successful investing strategy by Ray Dalio. It should do well in all market climates but may to too bond heavy and may not give you the returns that you require.

The book by Tony Robbins is fantastic and if you don’t intend to implement the portfolio I encourage you to pick up his book as it is an eye-opener, especially if you are new to investing and personal finance.

Suggestions for your next steps

If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.

Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Related questions

What is the 3-fund portfolio?

The three-fund portfolio is a simple portfolio, that you can build with three ETFs. The three ETF portfolio contains the following:

• US Stocks (VTI).
• International Stocks (VEU).
• US Bond Market (BND).