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XAR - ETF AI Analysis
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SPDR S&P Aerospace & Defense ETF (XAR)
Rating:68Neutral
Price Target:―
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)
AUM5.81B
RegionNorth America
Expense Ratio0.35%
Beta1.15
IssuerSPDR
Inception DateSep 28, 2011
Dividend Yield0.34%
Asset ClassEquity
Index TrackedS&P Aerospace & Defense Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume234,201
30 Day Avg. Volume240,879
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
310.02Price 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 very much a U.S. aerospace and defense story, with performance lately powered by rising niche players like Kratos Defense and Karman Holdings, which are helping pull the fund higher. Rocket Lab and ATI are also adding some lift, riding strong demand tied to space and advanced materials. On the flip side, AeroVironment has been more mixed, and Boeing remains a bit of a problem child, with ongoing challenges keeping a lid on its contribution. Big contractors like Lockheed Martin and Northrop Grumman provide a steadier, ballast-like presence.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| ATI | 4.13% | $242.82M | $19.94B | 141.89% | 78 Outperform | |
| Lockheed Martin | 4.10% | $240.57M | $149.46B | 50.09% | 70 Outperform | |
| Woodward | 3.94% | $231.17M | $23.08B | 104.82% | 79 Outperform | |
| Howmet Aerospace | 3.87% | $227.48M | $101.26B | 78.89% | 67 Neutral | |
| Huntington Ingalls | 3.82% | $224.06M | $16.40B | 144.51% | 69 Neutral | |
| Northrop Grumman | 3.73% | $218.79M | $99.50B | 67.22% | 76 Outperform | |
| Curtiss-Wright | 3.66% | $214.81M | $25.37B | 105.87% | 74 Outperform | |
| Carpenter Technology | 3.63% | $213.27M | $18.67B | 76.87% | 75 Outperform | |
| Boeing | 3.62% | $212.82M | $191.66B | 28.35% | 54 Neutral | |
| Rocket Lab USA | 3.59% | $210.56M | $37.33B | 187.00% | 57 Neutral |
XAR Technical Analysis
Positive
―
Price Trends
262.03
Positive
249.26
Positive
227.92
Positive
Market Momentum
1.72
Positive
56.19
Neutral
75.77
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XAR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 275.11, equal to the 50-day MA of 262.03, and equal to the 200-day MA of 227.92, indicating a bullish trend. The MACD of 1.72 indicates Positive momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XAR.
XAR Peer Comparison
Comparison Results
Performance Comparison
XAR
SPDR S&P Aerospace & Defense ETF
278.32
111.50
66.84%
AIRR
First Trust RBA American Industrial Renaissance ETF
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PPA
Invesco Aerospace & Defense ETF
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VIS
Vanguard Industrials ETF
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―
IYJ
iShares U.S. Industrials ETF
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MISL
First Trust Indxx Aerospace & Defense ETF
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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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