Raymond Dalio is an American businessman who founded Bridgewater Associates, the world's largest hedge fund firm, which manages $155 billion. Dalio was on Time magazine's list of the world's 100 most influential people in 2012. In 2014, Dalio made an estimated $1.2 billion, which put him in second place on Forbes' highest-earning hedge fund managers and traders list.
According to Forbes, as of Feb. 9, 2016, Dalio has a net worth of $15.6 billion. Since Dalio has over $100 million in qualifying assets, he is required to file the SEC Form 13F, which much be filed within 45 days after the end of each quarter. Dalio filed the SEC Form 13F-HR on Nov. 12, 2015 for the quarter ending Sept. 30, 2015. The top five positions in Dalio's portfolio for the third quarter consist of exchange-traded funds (ETFs), which make up nearly 75% of his portfolio.
Vanguard FTSE Emerging Markets ETF
The Vanguard FTSE Emerging Markets ETF (NYSEARCA: VWO) primarily invests in common stocks of companies within emerging-market countries such as China, Taiwan, India and South Africa. The fund carries a high degree of risk, but it has the potential for high growth rates. Therefore, it is best-suited for investors with long-term investment horizons. The Vanguard FTSE Emerging Markets ETF is Dalio's largest position; 29.83% of his portfolio is allocated to this fund. Dalio's portfolio owns 67.36 million shares of this ETF, which had a market value of $2.23 billion on Sept. 30, 2015.
SPDR S&P 500 ETF
Dalio's second-largest holding is in the SPDR S&P 500 ETF (NYSEARCA: SPY), which is the most actively traded ETF tracking the S&P 500 Index. This ETF charges an exceptionally low annual net expense ratio of 0.09%, which helps to reduce Dalio's costs. Dalio allocates 26.26% of his portfolio, or 10.24 million shares, to this ETF, which had a market value of $1.96 billion at the end of the third quarter of 2015.
IShares MSCI Emerging Markets ETF
The third-largest position in Dalio's portfolio is the iShares MSCI Emerging Markets ETF (NYSEARCA: EEM). This ETF is another long-term investment in the emerging markets. The iShares MSCI Emerging Markets ETF tracks the MSCI Emerging Markets Index, which comprises mid- and large-cap stocks of companies in emerging markets. Dalio allocates 16.02% of his portfolio to this ETF. Based on his SEC Form 13F-HR filing, Dalio's portfolio holds 36.51 million shares of the fund, which had a market value of approximately $1.2 billion at the close of trading on Sept. 30, 2015.
IShares IBoxx $ Investment Grade Corporate Bond ETF
There is a steep drop-off between Dalio's third- and fourth-largest holdings. Dalio only allocated a small portion of his fund to a bond-related ETF. His portfolio holds 829,855 shares of the iShares Boxx $ Investment Grade Corporate Bond ETF (NYSEARCA: LQD), which had a market value of $96.34 million at the end of the third quarter in 2015. This ETF seeks to provide investment results corresponding to the Markit iBoxx USD Liquid Investment Grade Index, which comprises U.S. dollar-denominated investment grade corporate bonds. This ETF is well-diversified with 1,503 holdings as of Feb. 8, 2016.
IShares Core S&P 500 ETF
Dalio's fifth-largest position only accounts for 0.45% of his portfolio. His portfolio holds 175,000 shares of the iShares Core S&P 500 ETF (NYSEARCA: IVV). As of Sept. 30, 2015, Dalio's position in this ETF had a market value of $33.72 million. The iShares Core S&P 500 ETF is similar to his second-largest position, which tracks the S&P 500 Index. The iShares Core S&P 500 ETF is less-actively traded, but it charges a lower annual expense ratio of 0.07%.