Analyzing Ray Dalio’s Largest Holdings as of 2Q17
Ray Dalio’s largest holdings
Legendary hedge fund manager Ray Dalio’s firm Bridgewater Associates made huge investments in various ETFs in 2Q17. The top five holdings of Bridgewater Associates in 2Q17 are the Vanguard FTSE Emerging Markets ETF (VWO), the iShares Core MSCI Emerging Markets (IEMG), the SPDR S&P 500 ETF (SPY), the iShares MSCI Emerging Markets ETF (EEM), and the iShares MSCI Brazil Capped ETF (EWZ).
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Those ETFs represent 29.5%, 3.2%, 21.3%, 21.4%, and 2.0%, respectively, of Bridgewater Associates’ portfolio. The strong position in major emerging market ETFs is signaling that Dalio has a strong positive stance on emerging markets.
Performances of emerging markets
The iShares MSCI Emerging Markets ETF (EEM), which tracks the performance of emerging markets, rose 30.6% on a year-to-date basis, as of November 8, 2017. The SPDR S&P 500 ETF (SPY), which tracks the performance of the broader market S&P 500 index, returned 14.9% in the same period.
The stronger performance of some emerging nations is mainly driven by reforms taken by their governments. The change in demographics of major emerging nations is also strengthening investor confidence in these economies.
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