Ray Dalio is putting his money where his mouth is when it comes to the broad U.S. stock market. Bridgewater Associates, the hedge fund giant he founded, dramatically boosted its positions in two of the biggest S&P 500 ETFs during the second quarter.

The firm added 955,446 shares of the State Street SPDR S&P 500 ETF Trust (SPY) and 323,202 shares of the iShares Core S&P 500 ETF (IVV), lifting its total holdings to 5.32 million and 3 million shares, respectively. At June 30, those positions were worth about $3.97 billion and $2.25 billion, putting their combined value at roughly $6.22 billion.

That's a hefty chunk of Bridgewater's portfolio. The two ETFs together accounted for about 25.5% of the fund's $24.38 billion 13F filing, far exceeding its individual stakes in Nvidia Corp (NVDA), Broadcom, Inc (AVGO), and Amazon.com, Inc (AMZN).

So, what does this mean for the average investor? Is Dalio's move a signal to pile into the S&P 500, and if so, which ETF should you choose?

SPY vs. IVV: The Technical Differences

For long-term investors, the underlying exposure is nearly identical: both funds hold 504 stocks that track the S&P 500. The real difference comes down to cost and trading mechanics.

IVV charges a rock-bottom expense ratio of 0.03%, while SPY charges 0.0945%. On a $100,000 investment, that translates to about $30 per year in fees for IVV versus $94.50 for SPY. Over a decade, that difference adds up.

But SPY has its own advantages. Its massive size and deep liquidity make it a favorite among active traders and options enthusiasts. If you're buying and selling frequently, SPY's tight spreads and high volume can more than offset its higher fee. For a buy-and-hold investor, though, IVV is the more compelling choice.

Performance differences between the two are minimal. IVV's NAV return in 2026 so far is nearly 13%, while SPY's year-to-date gain is roughly 13.5%.

The S&P 500 Has Momentum — But It Isn't Cheap

The technical picture remains constructive. SPY is trading at $773.42 as of Monday, sitting just 0.8% below its 52-week high. Its Relative Strength Index (RSI) is 64.8, indicating strong momentum but not yet overbought territory. IVV's RSI is also 64.8, showing similar strength.

However, valuations give pause. SPY trades at a price-to-earnings ratio of 22.54, well above the FactSet Segment Average P/E of 11.10, according to ETF Database. IVV, despite its lower fee, has an even higher P/E of about 30.2. That suggests the market is pricing in robust future earnings growth, which could be a risk if those expectations aren't met.

Is Now a Good Time to Buy?

Dalio's move is certainly bullish for broad-market exposure, but investors shouldn't treat a 13F filing as a real-time trading signal. The filing reflects holdings as of June 30 and doesn't reveal any subsequent changes. Dalio could have sold everything by now for all we know.

Still, the combination of rising market breadth, prices above key moving averages, and continued earnings-driven strength argues against trying to call a top just because the S&P 500 is at record levels. The market can stay expensive longer than you think.

For investors entering now, staggering purchases rather than making a single large allocation could reduce timing risk. Dollar-cost averaging is a time-tested strategy that takes the emotion out of investing.

And between the two ETFs, the verdict is relatively straightforward: SPY for trading and options liquidity; IVV for long-term S&P 500 exposure and lower costs.

Dalio may own both. Most investors probably don't need to.