Bridgewater Fund collaborates with Dao Fu Bank to launch a new ETF to assist in long-term capital appreciation.

Ray Dalio's Bridgewater Fund and Credit Suisse's asset management business are partnering to launch an exchange-traded fund (ETF) called SPDR Bridgewater All Weather ETF, aiming to achieve "long-term capital appreciation". The fund will combine Bridgewater Fund's risk parity strategy with Credit Suisse's asset management capabilities to provide investors with a new choice for diversified asset allocation. Specifically, since its launch in 1996, the SPDR Bridgewater All Weather ETF has been used to manage Dalio's trust assets using an investment approach known as risk parity strategy. The core idea of this strategy is not to pursue high returns by investing heavily in high-risk assets such as stocks, but to achieve a similar return with lower risk by balancing the allocation of bonds, commodities, and other different assets in the portfolio, and adding more stable investments. Bridgewater Fund's continuous iteration of this strategy emphasizes the importance of constructing a portfolio that can withstand business cycle fluctuations. A report from Credit Suisse Global Investment Management ETF shows that nearly half of global institutional investors plan to increase their allocation to alternative assets in the next year. In this context, the partnership between Bridgewater Fund and Credit Suisse has emerged. The fund will be advised by Credit Suisse Global Investment Management and will invest based on the model portfolio provided by Bridgewater Fund. Currently, the ETF's ticker symbol, fees, or holdings have not been disclosed. Karen Karniol-Tambour, Co-CIO of Bridgewater Fund, stated that diversified asset allocation is an important step in responding to future economic changes. She pointed out that traditional asset allocation has relied on abundant liquidity, sustained deflation, and geopolitical stability over the past few decades, but the future economic environment will be more complex and changeable. Therefore, enhancing diversification through alternative investment methods and resistance to a range of outcomes will be an important wealth management tool in the coming decades. However, the market's enthusiasm for these diversified investment strategies has waned in recent years, mainly because their performance has not exceeded the S&P 500 index. In 2022, rising inflation and the Federal Reserve's interest rate hikes have dealt a severe blow to stock and bond markets, with risk parity strategies also being affected, especially due to their typically higher bond allocation. Wealthfront Inc. announced this month that it will close its $1.3 billion risk parity fund, and pension funds are also reducing their investment allocation to this strategy. The S&P Risk Parity Index, with a target volatility of 12%, has achieved 3% growth this year; meanwhile, the Bloomberg index, with a target allocation of 60% stocks and 40% bonds, has recorded an 11% increase this year. As of Monday's close, the S&P 500 Index has shown a more significant increase of around 24%. Although Bridgewater Fund's risk parity strategy has faced some challenges in recent years, Bridgewater Fund has iterated and upgraded this strategy, emphasizing holding assets that can withstand business cycle fluctuations. Therefore, the launch of SPDR Bridgewater All Weather ETF is seen as an important attempt by Bridgewater Fund in the ETF market. With the continuous development and growth of the ETF market, its advantages such as convenient trading, tax benefits, and generally lower fees are becoming more prominent. Therefore, major financial institutions are launching new ETF products to meet the needs of investors. As the third largest ETF issuer globally, Credit Suisse is also actively seeking partnerships with excellent asset management firms to expand its ETF product line. For investors, the launch of SPDR Bridgewater All Weather ETF provides a new investment choice. The fund combines Bridgewater Fund's risk parity strategy with Credit Suisse's asset management capabilities, aiming for long-term capital appreciation. However, investors also need to pay attention to the potential risks and fees when choosing this fund. Furthermore, as the ETF market continues to develop and grow, investors need to continuously monitor market dynamics to make wise investment decisions. In summary, the partnership between Bridgewater Fund and Credit Suisse marks an important innovation in the ETF market. The launch of this fund will provide investors with a new choice for diversified asset allocation, and drive further development and growth of the ETF market.