XARETF

The State Street SPDR S&P Aerospace & Defense ETF (XAR) is analyzed as a smart beta ETF with $5.52 billion in assets and a low expense ratio of 0.35%. However, the fund has underperformed recently, declining 5.84% year-to-date and 8.96% over the past year as of October 9, 2026.

With a beta of 1.03 and standard deviation of 23.92%, it presents medium risk. Alternative aerospace & defense ETFs like Invesco's PPA and iShares' ITA are also discussed.

The article compares two aerospace and defense ETFs: ARK Space & Defense Innovation ETF (ARKX) and State Street SPDR S&P Aerospace & Defense ETF (XAR). While ARKX delivers higher 3-year returns (30.4% annualized), XAR is recommended as the better buy due to its lower expense ratio (0.35% vs 0.75%), broader diversification across 50 holdings, lower volatility, and superior 5 and 10-year performance.