John Davi of Astoria Portfolio Advisors - ETF Model Portfolios and Factor Investing

Episode • Oct 17, 2023 • 36m

The future of ETF model portfolios and factor investing appears promising. With the continued growth of the ETF industry and the increasing demand for diversified and risk-adjusted investment solutions, ETF model portfolios are likely to gain further traction. As investors navigate the challenges of a deglobalized world environment, the principles of factor investing and quality investing will continue to play a crucial role in achieving long-term financial goals.

In this episode, Rusty and Robyn talk with John Davi, Founder, CEO, and CIO at Astoria Portfolio Advisors. John is an award-winning research strategist with over 20 years of experience across macro ETF strategy, quantitative research, and portfolio construction. Before starting Astoria, he was the head of Morgan Stanley's Institutional ETF Content and advised many of the world's largest hedge funds and asset managers on ETF portfolio construction. John published hundreds of reports in his research career across various topics, from ETFs, indices, and futures to structured products.

John talks to Rusty and Robyn about ETF model portfolios and factor investing. He emphasizes the importance of active management, diversification, and quality investing in the current market environment.

Key Takeaways

[03:14] - What inspired John to get into investment management.
[04:29] - An overview of Astoria Portfolio Advisors and its services.
[05:53] - John's journey in developing ETF Model Portfolios.
[07:36] - What sets Astoria's ETF Model Portfolio apart from others?
[09:09] - How boutique ETF strategists can compete against major ETF providers.
[10:32] - The future growth of the ETF industry and ETF models.
[11:39] - How factor investing works.
[16:02] - Why quality is Astoria's true north.
[17:40] - How real estate investing is similar to factor investing.
[18:51] - John's view on the macroeconomic landscape.
[20:34] - Investing in a deglobalized world.
[23:03] - John's outlook for the next three quarters.
[25:25] - Recommended strategic weight for non-U.S. equities.
[26:50] - John's view of artificial intelligence in investment management.
[28:05] - John's favorite investment idea.
[29:26] - How John maintains his physical and mental energy to perform at his best.
[30:51] - The people John is thankful for professionally.
[31:58] - John's recommendations for content.

Quotes

[09:55] - "Diversifying our factors and using liquid alts can help you get higher up in the efficient frontier." ~ John Davi

[15:21] - "It's very attractive to just own beta. But when you own a few factors, you get a smoother return." ~ John Davi

[16:26] - "Quality is the most consistent of the factors. It's basically like buying good companies with good balance sheets. They pay dividends, they don't take on a lot of debt, and the consistency of their earnings and their earnings beats." ~ John Davi

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