As we move into the latter half of 2025, investment strategist John Davi is urging investors to embrace a bolder approach. The market, he argues, has shifted significantly since the anxieties of early April, when fears surrounding tariffs and their inflationary impact loomed large. Davi, founder and CEO of Astoria Portfolio Advisors, believes the time has come to “re-risk your portfolio.”
The S&P 500’s dramatic turnaround , a rise of roughly 6.7% year-to-date after a 15% drop by April 8th , signals renewed investor confidence fueled by robust corporate earnings and, of course, the relentless buzz surrounding AI technology. However, Davi cautions against complacency, advising investors to actively seek out resilient sectors amidst persistent geopolitical tensions and evolving trade policies.
Like many, Davi , whose firm oversees $2.5 billion in assets, including four ETFs , has become more optimistic about U.S. equities compared to the start of the year. The recent surge, especially in sectors beyond technology, has solidified his conviction in companies beyond the usual growth stocks. Davi highlighted several factors in an interview, “Now we’re at a point where earnings revision breadth has had this V-shape recovery. We have a weaker dollar. We’ve got policy uncertainty that’s declined…less tariffs. We have renewed optimism over AI.”
Davi explained that a weaker dollar historically acts as a “tailwind” for riskier assets on a global scale. Instead of solely focusing on the ‘Mag 7’ tech giants, he sees a wealth of untapped opportunities. “It’s time to re-risk your portfolio,” Davi insists, anticipating a potential market rally in the coming months. There’s a risk averse feeling out there but it’s misplaced, I think. I made a few investments late last year, should of invested more I guess…” posted one user on X.com.
But where should investors focus their attention?
- Industrials: Benefiting from infrastructure and equipment demands related to AI development.
- Energy: A sector showing resilience amid shifting geopolitical landscapes.
- Real Estate: Selectively chosen REITs, potentially capitalizing on undervalued assets.
- Fixed Income: High-yield and corporate bonds offering attractive returns.
Davi advocates for looking beyond the popular SPDR S&P 500 ETF and Vanguard S&P 500 ETF, urging investors to consider opportunities within industrials, energy, real estate, and fixed income. He emphasizes the tax efficiency, low fees, and overall safety of these options for individual investors aiming to build long-term wealth. He notes that equal-weighted ETFs are particularly appealing during periods of high concentration, potentially providing strong returns and greater diversification, especially when smaller companies outperform.
He specifically recommends the Invesco S&P 500 Eql Wght Industrials ETF (RSPN) as a superior alternative to the Industrial Select Sector SPDR Fund (XLI) for gaining exposure to the industrials sector. “There’s all this risk still out there, right. But really, if you strip out the ‘Mag 7,’ the S&P 500 is not that expensive,” he clarifies. An equal-weighted ETF, he argues, capitalizes on the growth potential of mid-sized and smaller companies outside the tech sector, where earnings are growing at a faster pace than those of the tech giants. I saw my neighbor, he told me that he invested everything in TSLA. Hope that works out for him!
One of Davi’s top picks is the BNY Mellon Global Infrastructure Income ETF (BKGI), which has soared by 30% in 2025 and 41% over the past year, significantly outperforming the S&P 500’s returns of nearly 7% and 15% over the same periods, respectively, according to FactSet data. As of March 31, the ETF’s top holdings are concentrated in utilities and energy, with Enel SpA, Hess Midstream, Orange SA, and Dominion Energy among its top 10 holdings.
Davi also highlights the Astoria Real Assets ETF (PPI), which has rallied 14% so far in 2025, as offering similar opportunities. The fund’s top holdings include SPDR Gold MiniShares Trust, Rolls-Royce Holdings, Simon Property Group, Shell, and Constellation Energy. “Suddenly, the landscape changed,” said one investor who had been following Davi’s advice. “I was nervous at first, but I’m glad I took the leap.”
In the fixed income space, Davi identifies the Schwab High Yield Bond ETF (SCYB), JPMorgan BetaBuilders USD High Yield Corp Bd ETF (BBHY), Janus Henderson AAA CLO ETF (JAAA), and the SPDR Portfolio Intermediate Term Corporate Bd ETF (SPIB) as attractive options. “Owning credit makes a lot of sense,” he asserts. “There’s value in holding high yield credit and corporate credit.”
This stratergy isn’t without risk. In the current environment, several factors such as geopolitcal tension could affect Davi’s projections.