Core Insights - The iShares U.S. Tech Independence Focused ETF (IETC) targets technology companies that have technological capabilities, revenues, and production based in the United States, emphasizing a domestic focus in its selection and weighting of stocks [1] Group 1: ETF Focus and Strategy - The ETF's strategy is centered on investing in U.S.-based tech companies, reflecting a commitment to supporting domestic technological development [1] Group 2: Analyst Background - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, with a strong focus on equity valuation and market trends [1] - Previous experience includes a role as Vice President at Barclays, leading teams in model validation and stress testing, indicating a deep expertise in both fundamental and technical analysis [1] - The analyst collaborates with a research partner to produce high-quality, data-driven investment insights, combining strengths in risk management and long-term value creation [1]

Core Viewpoint - President Trump is threatening new tariffs on major trading partners, which could lead to increased consumer prices and potential economic growth challenges, as well as a global trade war [1][2]. Trade Policy Impact - The S&P 500 index fell by as much as 19% following the announcement of initial tariffs in April, with further declines occurring after Trump's recent threats of a 100% surcharge on imports from China and a new 10% tariff on Canadian imports [2]. Investment Opportunities - The iShares U.S. Tech Independence Focused ETF (IETC) is highlighted as a potential investment to protect against trade tensions, focusing on American technology companies that are increasing domestic production [3][5]. ETF Composition - The iShares ETF has a significant allocation in the software and services sector at 40.6%, and the semiconductor sector at 25.7%, with the latter being less affected by tariffs due to exclusions for critical computing hardware [6][7]. Top Holdings - The top 10 holdings in the iShares ETF account for 61.6% of its portfolio, with major companies like Broadcom, Palantir Technologies, and Nvidia leading the way, reflecting a strong focus on software and semiconductor industries [8][9]. Performance Metrics - The iShares U.S. Tech Independence Focused ETF has delivered a compound annual return of 21.5% since its establishment in 2018, outperforming the S&P 500's 13.4% annual gain during the same period [14].

Company Performance - Palantir reported a historic milestone of achieving $1 billion in revenues for the first time in its second-quarter 2025 results, driven by the artificial intelligence boom [1][2] - The company beat earnings per share estimates with 16 cents, improving 78% year over year, and revenues climbed 48% year over year to $1 billion, surpassing the consensus estimate of $938.33 million [2] - U.S. government revenues increased by 53% year over year to $426 million, while U.S. commercial revenues surged 93% to $306 million [2] Revenue Guidance - Following the strong quarter, Palantir raised its full-year revenue guidance to $4.14-$4.15 billion from the previous estimate of $3.90 billion, expecting approximately $1.085 billion for the ongoing third quarter [3] - The Zacks Consensus Estimate for the ongoing quarter is $989.44 million and $3.92 billion for the full year [3] Stock Performance - Palantir shares have more than doubled in value this year and increased by over 500% in the past 12 months, leading to a high valuation with shares trading at 276 times forward earnings [4] Investment Opportunities - Investors interested in Palantir's growth can consider ETFs with significant allocations to the company, such as Direxion Daily PLTR Bull 2X Shares (PLTU) and GraniteShares 2x Long PLTR Daily ETF (PTIR), which offer 200% performance of Palantir's common shares [5] - Tech ETFs like iShares U.S. Tech Independence Focused ETF (IETC) and iShares Expanded Tech-Software Sector ETF (IGV) have Palantir as a major holding, with shares of 10.3% and 9.6% respectively [6] ETF Details - IETC is an actively managed ETF focusing on U.S. tech companies, with Software & Services taking the largest share at 41.5% [7] - IGV targets software companies in technology and communication services, with application software comprising 60.69% of its holdings [8] - Palantir is the top holding in the Global X Defense Tech ETF (SHLD), which invests in companies benefiting from defense technology adoption [9]