66% Q4 Government Contract Growth Drives Inflows to iShares Aerospace ETF
Palantir’s U.S. government contracts, representing 42% of revenue, grew 66% year-over-year in Q4, reigniting defense sector demand and boosting interest in aerospace and defense ETFs like the iShares U.S. Aerospace & Defense ETF. Despite this, Palantir remains absent from ITA’s holdings, prompting investors to explore alternative defense-focused funds.
1. Defense Contract Growth Revives Sector Demand
Palantir’s government contracts, which account for 42% of its total revenue, grew 66% year-over-year in the fourth quarter, highlighting the resurgence of defense spending and reinforcing investor interest in aerospace and defense funds such as the iShares U.S. Aerospace & Defense ETF.
2. ETF Inflows into Aerospace & Defense ETF
Escalating geopolitical tensions have attracted fresh capital into flagship defense ETFs, driving net inflows into ITA as investors seek stable exposure to U.S. defense budgets and military technology suppliers across diversified portfolios.
3. Palantir Exclusion Sparks Alternative ETF Search
Despite the broad sector rally, Palantir is not held within ITA’s portfolio, leading some investors to consider alternative ETFs like Global X Defense Tech, Defiance Drone and Modern Warfare, or U.S. Global Technology and Aerospace & Defense for direct exposure to PLTR’s defense contracts.