Palantir (NASDAQ:PLTR | PLTR Price Prediction) stock has been the talk of the town again after shares skyrocketed more than 22% following an incredible quarterly earnings report. Undoubtedly, the data analytics and AI software firm continues to defy the laws of gravity. And while the supposedly expensive-looking stock (at least based on most valuation metrics out there) is now around 20% pricier than last week, questions linger as to whether there’s still more room to gain and whether pricey-looking metrics should be forgiven for the growth opportunity that could be at hand.
In this piece, we’ll look at three ETFs (exchange-traded funds) that have been quietly (and wisely) picking up Palantir shares in recent years. Notably, we’ll focus on the ETFs with relatively large positions in the fast-rising and newly-minted $230 billion company that’s now up close to 35% for 2025 thus far.
While relatively sizeable PLTR stock positions don’t necessarily entail an ETF manager knowing where the puck is headed next, I do think passive investors looking to play such aggressive growth themes within the AI scene may wish to consider stashing such funds on their radar as we move further into a year that’s sure to be clouded with uncertainty and both positive and negative surprises as we learn more about the emerging winners from the “AI arms race.”
ARK Innovation ETF (ARKK)
You have to give credit where credit is due. Though Cathie Wood’s Ark Innovation ETF (NYSEARCA:ARKK) has been up against it since the steep sell-off of 2021-22, the ARKK is starting to gain again. And positions in red-hot innovators like Palantir are a major reason why Ark Invest and the theme of disruptive innovation investing as a whole could be in for a comeback after a lengthy, multi-year hibernation.
At the time of writing, Palantir is ARKK’s fifth largest holding, with a 6.5% weighting. Although Cathie Wood had taken some profits off the table in the back half of last year (around 1.9 million worth of shares), the firm remains a top holding that could continue to climb the Ark rankings. Looking back, it’s clear she took profits a tad too soon. Either way, the important thing was she was in the name of taking gains off the table in the first place.
Who knows? Perhaps the stock could surge enough to crack the top three this year. Either way, the ARKK remains a top Palantir-holding ETF worth considering if you’re a fan of aggressive growth strategies.
iShares Russell Mid-Cap Growth ETF (IWP)
iShares Russell Mid-Cap Growth ETF (NYSEARCA:IWP) is another ETF that’s quite heavy on the Palantir shares. Despite being a company now worth north of $200 billion, the large-cap remains a top holding in the mid-cap growth ETF. Indeed, the stock has come a long way since debuting on the public markets, now up over 1,000%.
Though Palantir is starting to become an overheated meme stock, there are vocal bulls who are staying the course. And with a 6.4% weighting in the IWP, investors seeking “the next best thing” in growth may wish to stick with the ETF. Indeed, the IWP’s goal is to expose investors to mid-sized firms with above-average growth prospects. With a four-star Morningstar rating and a very competitive 0.23% expense ratio, lower than for ARKK, IWP is a great way to get a piece of Palantir and names like it.
Global X Defense Tech ETF (SHLD)
Global X Defense Tech ETF (NYSEARCA:SHLD) is a unique defense-focused ETF with Palantir at its very core. With so much business for the U.S. government, it should be no surprise to see the AI contractor comprising a top (12.2%) position in the ETF. Indeed, I’m a big fan of the ETF, which has around 15.4% of its holdings in the information technology sector.
Undoubtedly, to have a good defense, firms need to leverage the power of their data in an effective manner. In that light, it’s no mystery as to why Palantir is a told holding. If you seek a one-stop-shop way to bet on American defense, look no further than SHLD. It’s a unique ETF with one of the largest PLTR positions out there. Given its uniqueness, the 0.5% total expense ratio seems worth paying.
Top Gaining Stocks
Top Losing Stocks