PLTZ: Defiance Launches New 2X Short Palantir ETF
- Defiance ETFs has debuted PLTZ, targeting 200% daily inverse exposure to Palantir.
- New fund launches amid Palantir's 64.3% surge and growing political scrutiny.
- The ETF provides a tool for traders betting against the company's moves.
Defiance ETFs announced the launch of the first leveraged short exchange-traded fund targeting Palantir Technologies Inc. (PLTR) Friday, providing traders a new way to bet against the controversial data analytics company.
The Defiance Daily Target 2X Short PLTR ETF (PLTZ) seeks daily investment results of 200% inverse exposure to Palantir's stock price, according to a press release announcing the fund. The launch comes as Palantir has emerged as one of the most polarizing companies in the market, combining explosive financial growth with mounting privacy concerns over its government contracts.
PLTZ charges a 1.29% management fee and is designed for active traders seeking short-term exposure, according to the fund's prospectus. The fund will primarily use swap agreements and listed options to achieve its inverse leverage objective.
PLTZ Debuts as Political Headwinds Mount
The timing of PLTZ's debut reflects growing investor interest in ways to capitalize on Palantir's volatility, as the company faces both record-high valuations and intensifying political scrutiny that could affect its stock price.
Palantir's stock has climbed 64.3% year to date, making it the second-best performer in the S&P 500 for 2025. The company reported 39% year-over-year revenue growth to $884 million in the first quarter of 2025, with U.S. revenue jumping 55%, according to Financial Times reporting.
The new ETF launches amid growing political controversy surrounding Palantir's deepening ties with the Trump administration, according to Semafor. The company is reportedly helping create a comprehensive interagency database combining government data on Americans, raising privacy concerns among lawmakers.
In April, the company also secured a $30 million contract with the U.S. Immigration and Customs Enforcement to monitor undocumented immigrants, intensifying civil liberties debates, according to Reuters reporting.
Defiance ETFs, founded in 2018, manages 28 ETFs worth $3.5 billion, including multiple single-stock leveraged ETFs across various companies, according to FactSet. The firm's investment adviser is Tidal Investments, which manages the fund's day-to-day operations, according to the prospectus.
