The VanEck Alternative Asset Manager ETF offers targeted exposure to leading alternative asset managers, with top holdings accounting for 48% of assets. GPZ stands to benefit from secular growth in private markets, especially with increased retail access and supportive regulatory changes related to allowing alternatives in 401(k) plans. Despite recent pullbacks and sector risks, GPZ's top holdings have strong historical returns, robust earnings growth, and reasonable valuations versus traditional financials.
I rate VanEck Alternative Asset Manager ETF a Buy, targeting capital appreciation from the surge in alternative investments entering 401Ks after a recent executive order. The GPZ ETF offers exposure to the top 20 public alternative asset managers, benefiting from a $12.5 trillion retirement market and outpacing the financial sector since launch. The ETF provides diversification across private equity, credit, infrastructure, and real estate, with a low expense ratio and minimal direct competition among ETFs.