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XAR - ETF AI Analysis

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XAR

SPDR S&P Aerospace & Defense ETF (XAR)

Rating:67Neutral
Price Target:
XAR, the SPDR S&P Aerospace & Defense ETF, has a solid overall rating, mainly supported by strong, diversified defense leaders like General Dynamics and Northrop Grumman, which show healthy financial performance, robust backlogs, and positive earnings outlooks. Other key holdings such as BWX Technologies, Textron, and Hexcel also add strength through solid results and growth initiatives, though many face valuation concerns that slightly limit upside. The main risk is that the fund is heavily concentrated in the aerospace and defense sector, and weaker names like AeroVironment, with financial challenges and bearish trading signals, modestly weigh on the overall rating.
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)

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 a pure U.S. aerospace and defense play, and its story right now is all about traditional contractors pulling the weight while a few high-flyers wobble. Lockheed Martin, Northrop Grumman, and L3Harris are the steady engines, with solid backlogs and rising share prices over the past few months helping drive the fund. Karman Holdings has been a standout riser, adding extra lift. On the flip side, Rocket Lab has been lagging, and names like ATI and Woodward have seen more mixed, choppy trading, occasionally acting as a drag.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
BWX Technologies3.43%$201.13M$19.75B139.92%
75
Outperform
General Dynamics3.29%$192.97M$95.01B41.87%
80
Outperform
Lockheed Martin3.16%$185.64M$146.77B48.07%
70
Outperform
Curtiss-Wright3.15%$184.77M$25.78B142.78%
74
Outperform
Carpenter Technology3.14%$184.42M$19.67B157.73%
75
Outperform
L3Harris Technologies3.14%$184.32M$67.00B79.18%
70
Neutral
Textron3.12%$183.17M$15.41B44.93%
75
Outperform
Hexcel3.12%$182.91M$6.03B66.71%
73
Outperform
Northrop Grumman3.09%$181.40M$98.75B44.48%
76
Outperform
AeroVironment3.09%$181.26M$9.45B66.92%
52
Neutral

XAR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
272.27
Negative
100DMA
258.73
Positive
200DMA
241.13
Positive
Market Momentum
MACD
-4.82
Positive
RSI
48.67
Neutral
STOCH
72.98
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 264.54, equal to the 50-day MA of 272.27, and equal to the 200-day MA of 241.13, indicating a neutral trend. The MACD of -4.82 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$5.90B0.35%
67
Neutral
$8.60B0.69%
72
Outperform
$8.05B0.58%
71
Outperform
$7.19B0.09%
71
Outperform
$1.89B0.38%
72
Outperform
$1.48B0.60%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XAR
SPDR S&P Aerospace & Defense ETF
263.64
102.12
63.22%
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.
DisclaimerThis 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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