Palantir’s (PLTR) strong Q4 earnings have sparked investor interest in the data analytics company, sending the stock 6% higher. With revenue growth accelerating, commercial demand rising, and AI-driven contracts piling up, many investors are looking for exposure to PLTR stock. Thus, this might be the right time to consider exchange-traded funds (ETFs) that offer diversified exposure without the risk of holding the stock directly.
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Investors seeking exposure to Palantir stock may consider the iShares Evolved US Technology ETF (IETC) and the iShares Expanded Tech-Software Sector ETF (IGV). Let’s take a deeper look at these two ETFs.
iShares Evolved US Technology ETF
The IETC ETF provides exposure to U.S. tech companies with strong domestic operations, revenues, and production. It uses a proprietary classification system to focus on firms driving digital transformation, including software, semiconductors, and data analytics. Importantly, PLTR accounts for 10.49% of IETC’s total holdings.
Some of the top holdings in the IETC ETF include Broadcom (AVGO), Nvidia (NVDA), and Microsoft (MSFT). Overall, the ETF has $878.42 million in assets under management (AUM) and an expense ratio of 0.18%. Over the past six months, the IETC ETF has generated a return of 0.07%.
On TipRanks, IETC has a Strong Buy consensus rating based on 77 Buys and 10 Holds assigned in the last three months. At $127.85, the average IETC ETF price target implies 30.7% upside potential.
iShares Expanded Tech-Software Sector ETF
The IGV ETF invests in U.S. software and services companies, aiming for growth and income generation. It allows investors to tap into the growth of cloud computing, cybersecurity, enterprise software, and digital platforms. PLTR stock constitutes 8.12% of the ETF’s holdings.
Apart from PLTR, some of the top stocks in the IGV ETF are Oracle (ORCL), Intuit (INTU), and Salesforce (CRM). Overall, the ETF has $6.07 billion in AUM. Also, it has an expense ratio of 0.39%. The IGV ETF has declined 18.6% in the past six months.
Turning to Wall Street, the ETF has a Strong Buy consensus rating. Of the 114 stocks held, 90 have Buy ratings and 24 have Hold ratings. At $135.50, the average IGV ETF price target implies a 51.36% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to PLTR, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider IETC and IGV, as these ETFs offer exposure to Palantir stock.