Bridgewater's Core Holdings: Two Tech Giants and Two ETFs

Ray Dalio’s Bridgewater Associates, one of the world’s leading hedge funds with over $100 billion in assets under management, has made steady investment decisions despite market uncertainties. Following the billionaire’s investment moves can help build a time-tested portfolio, though due diligence remains essential.

Bridgewater executed several trades in Q3, as reflected in its 13F filings. However, Dalio has adopted a relatively conservative strategy—his core holdings consist of two tech giants and two ETFs.

**iShares Core S&P 500 ETF (NYSEARCA: IVV)** Bridgewater’s largest allocation is to the iShares Core S&P 500 ETF, accounting for 10.62% of its portfolio. The fund increased its stake by 4.83% in Q3, now holding over 1 million shares of IVV, an ETF it has invested in since 2010. IVV boasts $733 billion in assets under management.

This ETF provides broad exposure to U.S. large-cap stocks, tracking the S&P 500 Index and investing in the top 500 U.S. companies by market cap. Its top holdings include NVIDIA, Microsoft, Apple, Alphabet, and Amazon.com.

With a dividend yield of 1.04% and quarterly payouts, IVV’s sector allocation is dominated by technology (34.36%), followed by financials (13.38%) and consumer discretionary (10.56%). Its expense ratio is a minimal 0.03%. Over the past three and five years, IVV delivered cumulative returns of 94.83% and 114.12%, respectively.

Year-to-date (YTD) in 2025, IVV has risen 17.09%, trading at $687.83. With over two decades of history, the ETF remains a reliable choice for broad U.S. equity exposure and is poised to outperform in the coming years.

**SPDR S&P 500 ETF Trust (NYSE: SPY)** Bridgewater’s second-largest holding is State Street’s SPDR S&P 500 ETF (SPY), representing 6.69% of its portfolio. SPY, the first-ever listed ETF in the U.S., also tracks the S&P 500 Index.

A low-risk investment offering steady capital appreciation, SPY has gained 17.41% YTD in 2025, trading at $684.83. The fund holds 503 stocks, charges a 0.09% fee, and yields 1.04% in dividends. Its top sectors are information technology (34.08%), financials (13.55%), and consumer discretionary (10.62%).

Like IVV, SPY’s top holdings include NVIDIA, Apple, Microsoft, Amazon.com, Alphabet, Tesla Motors, and Meta Platforms, Inc.. Despite Dalio’s frequent trading, he maintains SPY as a core holding for portfolio stability. The fund’s three- and five-year cumulative returns stand at 20.43% and 15.12%, respectively.

Overall, IVV and SPY share similar structures and performance, both tracking the S&P 500 Index with comparable long-term returns, making them ideal for core holdings.

**Alphabet (NASDAQ: GOOGL)** Alphabet accounts for 2.53% of Bridgewater’s portfolio, with over 3 million shares held. Though the hedge fund has gradually reduced its stake, Alphabet remains a top-five holding, reflecting Dalio’s long-term bullishness on tech.

YTD in 2025, Alphabet’s stock has surged 61.89% to $308.61. The company’s robust AI ecosystem supports steady revenue growth. Beyond its dominant Google search engine, its expansion includes YouTube, now the world’s largest streaming platform.

Strong financials: Q3 revenue hit $102.3 billion, up 16% YoY, while net income jumped 33%. Cloud revenue grew 34% to $15.2 billion, and Google Services revenue rose 14% to $87.1 billion. Additionally, its cloud unit signed a $10 billion multi-year deal with Palo Alto Networks to expand AI-driven security infrastructure.

Wall Street remains bullish, with Wedbush analysts assigning an “Outperform” rating and a $350 price target.

**Microsoft Corporation (NASDAQ: MSFT)** Tech giant Microsoft represents 2.23% of Bridgewater’s portfolio. Despite a slight reduction in Q3, it remains a top-five holding. Analysts are optimistic about Microsoft’s AI-driven growth, with Azure cloud demand outpacing supply.

The market is abuzz over Microsoft’s AI integration across its product suite, including Copilot in Windows. Its latest earnings beat expectations: revenue rose 18% YoY to $77.67 billion, with EPS at $4.13. Cloud revenue grew 28% to $30.9 billion, cementing its role as a key growth driver.

YTD in 2025, Microsoft shares are up 15.80% to $484.72. The stock yields 0.75%, with dividends raised annually since 2010—total payouts have grown 250% over the past decade. Though the yield is modest, its stable growth and dividend history make it a quality income pick.

Despite trimming his stake, Dalio has held Microsoft since 2005, underscoring his confidence in its long-term prospects.