XAR - ETF AI Analysis

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SPDR S&P Aerospace & Defense ETF (XAR)

Rating:68Neutral

Price Target:―

XAR, the SPDR S&P Aerospace & Defense ETF, earns a solid overall rating thanks to several strong core holdings like ATI, Woodward, and Northrop Grumman, which show robust financial performance, positive earnings outlooks, and supportive technical trends. These strengths are partly offset by weaker names such as Boeing and Rocket Lab, where profitability challenges, high leverage, and valuation concerns weigh on the fund. The main risk factor is the ETF’s focused exposure to the aerospace and defense sector, which makes it sensitive to industry-specific issues like government spending, contract delays, and supply chain disruptions.

Positive Factors

Strong Recent Performance

The ETF has shown strong gains over the past year-to-date and recent months, indicating solid momentum in the aerospace and defense theme.

Broad Mix of Leading Defense Names

Top holdings include a mix of established defense contractors and faster-growing aerospace names, which together have generally delivered strong year-to-date results.

Meaningful Asset Base

The fund manages a large pool of assets, which can support liquidity and trading efficiency for everyday investors.

Negative Factors

High Industry Concentration

Nearly all of the ETF’s exposure is in the industrials sector, specifically aerospace and defense, which increases sensitivity to downturns or policy changes affecting this niche.

Single-Country Focus

With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is heavily tied to the U.S. economy and defense budget.

Moderate Expense Ratio

The ETF’s expense ratio is higher than that of many broad market index funds, which can slightly reduce net returns over time.

XAR vs. SPDR S&P 500 ETF (SPY)

AUM6.09B

RegionNorth America

Expense Ratio0.35%

Beta1.17

IssuerSPDR

Inception DateSep 28, 2011

Dividend Yield0.36%

Asset ClassEquity

Index TrackedS&P Aerospace & Defense Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume431,983

30 Day Avg. Volume311,545

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

317.44

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering41

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XAR Summary

XAR is the SPDR S&P Aerospace & Defense ETF, which follows the S&P Aerospace & Defense Select Industry Index. It invests mainly in U.S. industrial companies tied to aircraft, space, and military equipment. Well-known holdings include Boeing and Lockheed Martin, along with other defense contractors and aerospace innovators. Someone might invest in XAR to bet on long-term growth in defense spending and air travel, while spreading money across many companies instead of picking just one stock. A key risk is that it is heavily focused on the aerospace and defense sector, so it can rise or fall sharply with that industry.

How much will it cost me?The SPDR S&P Aerospace & Defense ETF (XAR) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund, which often requires more active management compared to broad-market index ETFs.

What would affect this ETF?The SPDR S&P Aerospace & Defense ETF (XAR) could benefit from increased government defense spending, advancements in aerospace technology, and growing interest in space exploration, which align with its focus on U.S.-based industrial companies like Lockheed Martin and Rocket Lab USA. However, it may face challenges from potential defense budget cuts, regulatory changes, or economic slowdowns that could impact demand for commercial aviation and defense projects. The ETF's reliance on the U.S. market also makes it sensitive to domestic economic and political conditions.

XAR Top 10 Holdings

XAR is flying on the strength of its U.S. aerospace and defense core, with names like ATI, Lockheed Martin, Woodward, and Howmet Aerospace steadily climbing and doing much of the heavy lifting for returns. Traditional defense contractors such as Huntington Ingalls and Northrop Grumman add a solid, steady backbone rather than fireworks. On the flip side, more speculative players like Kratos Defense, Rocket Lab, and Karman Holdings have been choppier, occasionally dragging on short-term performance. Overall, this is a tightly focused industrials play, heavily concentrated in U.S. defense and aerospace innovation.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
KRMN	Karman Holdings Inc.	4.54%	$285.83M	$13.10B	221.99%	62 Neutral
ATI	ATI	4.38%	$275.75M	$20.01B	192.20%	78 Outperform
LMT	Lockheed Martin	4.04%	$254.56M	$150.20B	39.51%	70 Outperform
CRS	Carpenter Technology	3.90%	$245.73M	$18.79B	113.85%	75 Outperform
WWD	Woodward	3.87%	$243.88M	$21.57B	104.56%	79 Outperform
NOC	Northrop Grumman	3.84%	$242.13M	$104.50B	50.08%	76 Outperform
HWM	Howmet Aerospace	3.81%	$239.88M	$97.76B	98.60%	67 Neutral
HII	Huntington Ingalls	3.73%	$234.79M	$16.27B	112.04%	69 Neutral
LHX	L3Harris Technologies	3.71%	$233.65M	$66.84B	69.47%	70 Neutral
RKLB	Rocket Lab USA	3.64%	$229.44M	$38.80B	289.13%	57 Neutral

XAR Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

275.74

Negative

100DMA

255.94

Positive

200DMA

235.89

Positive

Market Momentum

MACD

0.96

Positive

RSI

41.91

Neutral

STOCH

15.08

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XAR, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 279.56, equal to the 50-day MA of 275.74, and equal to the 200-day MA of 235.89, indicating a neutral trend. The MACD of 0.96 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 15.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XAR.

XAR Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XAR	―	―	$6.09B	0.35%	68 Neutral
AIRR	―	―	$8.44B	0.69%	72 Outperform
PPA	―	―	$8.41B	0.58%	71 Outperform
VIS	―	―	$7.34B	0.09%	70 Outperform
IYJ	―	―	$2.51B	0.38%	72 Outperform
MISL	―	―	$1.56B	0.60%	69 Neutral

Performance Comparison

XAR

SPDR S&P Aerospace & Defense ETF

265.21

104.16

64.68%

AIRR

First Trust RBA American Industrial Renaissance ETF

―

PPA

Invesco Aerospace & Defense ETF

―

VIS

Vanguard Industrials ETF

―

IYJ

iShares U.S. Industrials ETF

―

MISL

First Trust Indxx Aerospace & Defense ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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