Palantir Focused ETFs Spark Investor Interest: Here's Why

Author: Chandrima Sanyal | February 04, 2025 01:38pm

Market volatility has intensified investors’ focus on risk-adjusted strategies, with ETFs emerging as a key way to gain exposure to high-growth stocks without the “single-stock risk” string attached.

Amid the back-to-back market developments, Palantir Technologies (NASDAQ:PLTR) is making waves with strong Q4 results where it crushed analyst expectations.

For investors seeking exposure to Palantir without direct stock ownership, these are four ETFs to keep an eye on:

Also Read: Palantir Stock Is Surging Tuesday: What’s Going On?

• REX AI Equity Premium Income ETF (NASDAQ:AIPI): In this ETF, Palantir holds the biggest piece of the pie, with 10.77% claim on the total assets. Expense ratio is 0.65%. The ETF inched up 0.4% on Feb. 4, 12.27 p.m. ET.

• ARK Innovation ETF (NYSE:ARKK): Palantir consistently ranks among ARKK's top 10 holdings, reflecting Cathie Wood's strong conviction in its AI and data-driven capabilities. As of today, Palantir accounts for approximately 5.43% of ARKK's portfolio. The expense ratio is 0.75%. The ETF is currently trading relatively flat.

• Global X Funds Global X Defense Tech ETF (NYSE:SHLD): The ETF, with an expense ratio of 0.5%, reserves about 10% of its assets for Palantir. The ETF has returned 35% in the past year. The ETF rose 2.27% as of writing on Feb. 4.

• First Trust US Equity Opportunities ETF (NYSE:FPX): Though this fund tracks newly public companies, Palantir has remained a top component despite trading on the market since 2020. Palantir, with its 1000+% growth since its IPO, is a success story on its own, and this ETF capitalizes on that. FPX has around 7.05% allocation to the company stock, appealing to investors targeting high-growth IPOs. The expense ratio is 0.59%. The ETF climbed 1.05% as of writing on Feb. 4.

These ETFs allow investors to benefit from Palantir's growth graph while spreading risk across multiple high-tech stocks.

Why Palantir Is A Stock To Watch

Palantir soared after issuing a 2025 revenue forecast of $3.75 billion, surpassing analysts' expectations of $3.54 billion. CEO Alex Karp attributed the bullish outlook to “untamed organic growth” in AI demand. The company also projected $1.56 billion in adjusted operating income, beating estimates of $1.37 billion.

In Q4 2024, revenue jumped 36% to $827.5 million, exceeding forecasts of $775.9 million, while profit (excluding certain items) hit 14 cents per share, topping estimates of 11 cents.

Fueled by AI momentum, Palantir's stock surged 340% in 2024. After markets opened Tuesday, shares spiked 27% to a record $106.76, marking their biggest intraday gain in a year, according to Bloomberg.

Read Next:

• Treasury ETFs In Focus As Trump’s Tariffs, Fed’s Rate Decision Shake Bond Markets

Photo: Shutterstock

Posted In: AIPI ARKK FPX PLTR SHLD