Ray Dalio’s Bridgewater Associates is one of the top hedge funds today. It has over $100 billion in assets, and the fund has made solid moves despite market uncertainties. Following the steps of billionaires can help you build a portfolio that stands the test of time. However, due diligence is very important.
Bridgewater Associates has made several transactions in the third quarter, and it is reflected in the 13F reports. However, the billionaire has played safe with his investments. His top holdings include two tech titans and two ETFs. Here’s why I’d recommend them too.
iShares Core S&P 500 ETF
Bridgewater Associates has the highest allocation in the iShares Core S&P 500 ETF (NYSEARCA:IVV | IVV Price Prediction), comprising 10.62% of the portfolio. The hedge fund increased its position by 4.83% in the third quarter. Bridgewater owns more than 1 million shares of the ETF and started investing in IVV in 2010. IVV has $733 billion in assets under management.
The ETF provides exposure to large-cap companies in the U.S. and tracks the performance of the S&P 500 index. IVV invests in the 500 top U.S. companies based on their market capitalization. This means its top holdings include Nvidia, Microsoft, Apple, Alphabet, and Amazon.
The fund has a yield of 1.04% and pays quarterly dividends. Its highest allocation lies in the technology sector at 34.36%, followed by financials (13.38%) and consumer discretionary (10.56%). IVV has a low expense ratio of 0.03% and has generated a cumulative 3-year return of 94.83% and a 5-year return of 114.12%.
IVV has gained 17.09% in 2025 and is exchanging hands for $687.83. The fund has the potential to outperform the broader market in the coming years. With more than two decades of history, the fund has established itself as a strong player offering broad U.S. equity exposure.
SPDR S&P 500 ETF Trust
Bridgewater has the second-highest position in State Street’s S&P 500 ETF (NYSE: SPY), which makes up 6.69% of the total portfolio. The fund also tracks the performance of the S&P 500 and is the first exchange-traded fund listed in the United States.
SPY is a low-risk investment that ensures steady capital appreciation. It has gained 17.41% in 2025 and is exchanging hands for $684.83. The fund holds 503 stocks and has an expense ratio of 0.09%. It has a yield of 1.04% and has the highest allocation in the information technology sector (34.08%), followed by financials (13.55%) and consumer discretionary (10.62%).
Similar to IVV, its top 10 holdings include industry stalwarts such as Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, and Meta Platforms. Despite making several buy and sell transactions, Dalio prefers to stick to some ETFs, and SPY is one of them. It can help build a strong foundation for your portfolio. The fund has generated a cumulative 3-year return of 20.43% and a 5-year return of 15.12%.
With SPY, you get to own the biggest companies across industries. IVV and SPY are virtually identical in many ways. Both track the S&P 500 index and have generated similar returns over time.
Alphabet
Alphabet (NASDAQ:GOOGL) forms 2.53% of Bridgewater’s portfolio and holds more than 3 million shares. While the hedge fund has trimmed its position over time, it still remains one of the top holdings. Looking at Dalio’s holdings, it shows that he’s bullish on the tech sector.
Alphabet has gained 61.89% in 2025 and is exchanging hands for $308.61. It has a comprehensive AI ecosystem that ensures steady revenue growth. While the company is known for the dominating Google search engine, it has a massive empire that continues to grow. Its search engine continues to lead the industry, while YouTube has become the largest streaming platform today.
Its numbers are impressive. It reported a revenue of $102.3 billion, up 16% year over year, while the net income jumped 33%. Its cloud revenue soared 34% to $15.2 billion, and Google Services revenue jumped 14% to $87.1 billion. Its cloud division has gained a multi-year deal worth $10 billion with Palo Alto Networks, aimed at expanding the AI-driven security infrastructure.
There’s plenty of growth still to come. Wall Street remains bullish on the stock as its core business continues to thrive. A Wedbush analyst has an Outperform rating for the stock with a price target of $350.
Microsoft Corporation
Tech dinosaur Microsoft (NASDAQ:MSFT) forms 2.23% of Dalio’s portfolio. While he has trimmed his stake in the company during the third quarter, Microsoft continues to remain one of the top five holdings. The tech giant has seen a steady climb and continued optimism by Wall Street experts. AI will accelerate Microsoft’s growth, and the demand for Microsoft’s Azure cloud infrastructure has outpaced supply.
There’s a lot of talk about Microsoft’s AI rollout across its entire product stack and the expansion of CoPilot in Windows. In the recently announced results, the company beat earnings and revenue expectations. It reported a revenue of $77.67 billion, up 18% year over year, and an EPS of $4.13. Its cloud segment recorded a growth of 28% with a revenue of $30.9 billion, being one of the biggest growth drivers for the business.
MSFT stock has gained 15.80% year to date and is exchanging hands for $484.72. It has a dividend yield of 0.75% and has raised dividends every year since 2010. Despite the low yield, it is an excellent dividend stock to own. The company has increased its dividend by 250% in the past decade. However, the stock price has gone up; hence, the yield has dropped.
Despite trimming his stake, Dalio believes in the future of Microsoft and has held the stock since 2005.
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