John Davi, founder and chief investment officer at Astoria Portfolio Advisors, joined host Nate Geraci this week on ETF Prime to discuss his firm’s 15th annual report highlighting ten ETF picks for 2026.
Davi described these as dynamic satellite ideas intended for six to 12-month holding periods rather than short-term tactical trades. He outlined a constructive macro outlook based on three factors: tax cuts, potential tariff cuts, and Federal Reserve rate cuts. Davi expects the Fed to cut rates another 50 to 75 basis points following roughly 200 basis points of cuts over the past two years. He called this “a pretty good cocktail for owning stocks.”
While acknowledging bubble dynamics in some U.S. stocks, Davi emphasized rotation opportunities rather than exiting the market entirely.
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Davi highlighted the iShares MSCI ACWI ex U.S. ETF (ACWX) as a way to play international equities, citing a weaker dollar and attractive relative valuations as catalysts. He noted that international stocks tend to be more cyclical with exposure to industrials and financials.
On fixed income, Davi recommended the PIMCO Multisector Bond Active ETF (PYLD), which has over $10 billion in assets. He argued that active management is crucial in fixed income given non-linear risks and tight credit spreads. The fund has outperformed the Aggregate Bond Index by 12% since launching in July 2023, he added.
Davi also highlighted the SPDR Bridgewater All Weather ETF (ALLW), which launched last year and already has $700 million in assets. The strategy uses strategic asset allocation across four economic quadrants and operates with approximately 40% lower risk than the S&P 500.
For structured outcomes, Davi discussed the Calamos Auto Callable Income ETF (CAIE), which has grown to over $500 million in assets. He emphasized the need for investors to define specific outcomes, particularly in a potentially non-linear risk environment. The strategy sells low downside puts to generate yield.
Davi also included the Bitwise 10 Crypto Index ETF (BITW) on his list, viewing crypto as a fixed-supply scarce asset to protect purchasing power against money supply inflation. He recommended a buy-and-hold approach rather than tactical trading.
Davi is a member of the advisory council for the Exchange 2026 conference, taking place March 15-18 in Las Vegas, and will be a featured speaker at the event.
The episode also featured Ryan Barksdale, head of active equity product at Vanguard Group, Inc., and Kim Galen, head of equity boutiques at Wellington Management. They discussed Vanguard’s recent launch of its first three actively managed equity ETFs in collaboration with Wellington.
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