State Street’s All Weather ETF Shining With $500M

October weather in New York has been confusing. One weekend, it was a sunny 80 degrees, and I was in shorts. The following weekend, it was pouring rain and in the 40s. That kind of volatility made me want to check in on the SPDR Bridgewater All Weather ETF (ALLW).

Launched in early March 2025, just ahead of the Exchange conference, ALLW has just crossed the $500 million asset mark, according to its website. This is a nice achievement for an alternative ETF in an environment when the S&P 500 was up more than 10% for the year.

A Best-in-Class Partnership?

State Street Investment Management’s active ETF taps into Bridgewater Associates’ well-known institutional-grade investment approach. Going beyond a traditional 60% equity/40% fixed income allocation, ALLW seeks to balance risk across growth and inflation environments to help investors prepare for any market condition.

On the sidelines of the Exchange conference, State Street Investment Management’s Chief Business Officer Anna Paglia spoke about ALLW, explaining the rationale behind the partnership: “Risk parity is not new. Risk parity is not exotic or fancy. Our portfolio management team could have delivered a risk parity strategy. But we said, why not do it with who invented it? There is a reason why Bridgewater has been a manager of that strategy for 30 years. They have been refining it for 30 years. They are the best in class at risk parity. Why would we want to launch something that in the end might be mediocre? When we have the opportunity, we partner with the best-in-class, iconic brand. That’s what drives our product philosophy.”

Targeting Risk Exposure

Using a risk allocation approach, Bridgewater assigns how much risk it wants to come from each asset class, then evaluates the risk profiles of those assets and allocates a dollar amount to those assets to achieve the target risk exposure. ALLW uses Bridgewater’s portfolio construction expertise and macro understanding of various market environments to build and evolve the model portfolio. State Street Investment Management then implements the model by purchasing and selling securities and/or instruments for the fund. The ETF uses derivatives that result in the fund incurring leverage.

ALLW had its highest asset class exposure to global nominal bonds, but also included commodities, global equities, and inflation-linked bonds. The ETF rose 11.2% between its early March inception and September 30. Demand has also been building steadily. In the second quarter, the ETF gathered $127 million of new money and followed this up with an additional $161 million in the third quarter. It’s an institutional-caliber strategy being purchased by retail investors.

We think demand for alternative ETFs remains in the early stages. State Street’s partnership with Bridgewater has paid dividends so far, and we will continue to watch this fund — rain or shine.

For more news, information, and analysis, visit VettaFi | ETF Trends.

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