Palantir (PLTR) stock has surged 178.3% over the past six months, fueled by robust demand for its data analytics platforms and strategic partnerships. Also, the company’s focus on driving commercial growth, expanding internationally, and introducing new products reflect its promising prospects. Thus, investors looking for exposure to PLTR stock may consider investing in these two ETFs: Global X Defense Tech ETF (SHLD) and Ark Innovation ETF (ARKK).
Let’s take a deeper look at these two ETFs.
Global X Defense Tech ETF
The SHLD ETF invests in companies that benefit from the rising adoption of defense technology and covers sectors like industrials, cybersecurity, AI, and augmented reality. The ETF aims to track the performance of the Global X Defense Tech Index. Importantly, PLTR accounts for 10.14% of SHLD’s total holdings. Some of the top holdings in SHLD ETF include RTX (RTX), General Dynamics (GD), and Lockheed Martin (LMT).
Overall, the ETF has $862.62 million in assets under management (AUM) and an expense ratio of 0.5%. Over the past six months, the SHLD ETF has generated a return of 16.58%.
On TipRanks, SHLD has a Moderate Buy consensus rating based on 25 Buys and 13 Holds assigned in the last three months. At $47.15, the average SHLD ETF price target implies 11.59% upside potential.
Ark Innovation ETF
The ARKK ETF is an actively managed fund that seeks long-term capital growth. It is managed by renowned investor Cathie Wood and offers exposure to high-growth companies involved in advanced technologies and innovative solutions. This strategy provides investors with the potential for significant returns.
PLTR stock constitutes 5.26% of the ETF’s holdings. Apart from PLTR, some of the top stocks in the ARKK ETF are Tesla (TSLA), Roku (ROKU), and Coinbase (COIN). Overall, the ETF has $5.91 billion in AUM. Also, it has an expense ratio of 0.75%. The ARKK ETF has returned 29.46% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 36 stocks held, 29 have Buys, six have a Hold, and one Sell rating. At $75.62, the average ARKK ETF price target implies a 35.91% 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 SHLD and ARKK, as these ETFs offer exposure to Palantir stock.