Bridgewater Associates is launching an actively-managed retail ETF in partnership with State Street Global Advisors (SSGA) as demand for alternatives continues to rise. The hedge fund, which has approximately US$124 billion AUM as of November 2024, was founded by Ray Dalio in 1975.
A registration statement for the SPDR Bridgewater All Weather ETF was filed with the SEC on 19 November, with the proposal that it will become effective after 75 days.
ETFs and alternatives are of increasing interest to institutional investors globally, with SSGA’s 2024 ETF Impact Report noting that 45% intend to increase their allocations to alternatives in the next year. In the US, 41% of financial advisors said they would encourage their clients to do the same.
“[The fund] seeks to achieve long term capital appreciation,” the filing states, combining long and short exposure to various asset classes and markets, domestically and internationally, both directly and through derivative instruments. This will create “an overall portfolio that is intended to be resilient across a wide range of market conditions and environments”, the report continued.
An “environmental balance” diversification approach, allocating to assets it expects to outperform in both rising and falling growth and inflation conditions, will ensure investment objectives are met regardless of economic conditions, the firm said.
Karen Karniol-Tambour, co-chief operating officer at Bridgewater, commented: “we see global investors increasingly focused on portfolio resiliency and desiring durable client portfolios amidst a coming investing era that is likely to be very different from the last. We believe a diversified asset allocation is a great step in preparing for the future.”
SSGA will buy and sell securities and instruments on the fund’s behalf, based on Bridgewater’s recommendations.
©Markets Media Europe 2024
