Astoria CEO & CIO: Why Advisors Need a Dynamic Playbook in Today’s Market

For financial advisors navigating an increasingly concentrated equity market and a shifting interest rate environment, Davi’s message was clear: There is a real need for a more dynamic portfolio management process that can adapt to high-volatility environments.

Top of mind for Davi is the lack of diversification within the broader market. He noted that currently just 10 stocks account for approximately 50% of the S&P 500. This heavy weighting in the Magnificent Seven has rendered the cornerstone of most portfolios less diversified than many investors realize.

Furthermore, Davi expressed caution regarding the private credit and private equity sectors, noting that asset managers in some private companies have seen valuations drop 30% to 40% over the last few months due to a loosening of lending standards.

To combat these concentration risks, Davi suggests a deliberate rotation away from market-cap-weighted tech giants toward more balanced exposures. He highlighted the Astoria US Quality Growth ETF (ROE B+) as a potential solution, which consists of 100 stocks that are each equally weighted at 1% to provide a more level playing field. The strategy has outperformed the S&P 500 by approximately 500 basis points over roughly the past 16 months, proving that diversification does not have to come at the expense of performance.

Beyond equities, Davi is keeping a close eye on the commodities market, specifically gold, which he noted has risen 70% over the last year. This surge reflects growing concerns over the debt cycle and potential currency debasement. To hedge against stagflation, Davi pointed toward the AXS Astoria Inflation Sensitive ETF (PPI ), which serves as a tool for portfolios when currencies are being debased.

In 2025, the fund saw a significant 30% gain. Thus far in 2026, the fund has already climbed an additional 13%. Importantly, the fund maintains a low correlation to the S&P 500 and contains no technology stocks, offering a true satellite position for an alternative investment bucket.

As AI and automated models continue to streamline investment management, the role of the financial advisor is shifting toward high-touch services, Davi said. He views AI as a “co-pilot” that increases productivity, much like the transition from manual to electronic trading floors. By outsourcing complex investment management to professional models, advisors can reclaim time to focus on practice management, tax planning, and insurance — areas where the human element remains irreplaceable.

For advisors, the takeaway is clear: Return to fundamentals by prioritizing active management where it provenly adds value, embracing global diversification, as well as securing meaningful allocations to tangible, real-asset businesses.

For more news, information, and strategy, visit ETFdb.