XAR - ETF AI Analysis
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SPDR S&P Aerospace & Defense ETF (XAR)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating favorable momentum in the aerospace and defense theme.
Many Top Holdings Are Performing Well
Most of the largest positions, such as Carpenter Technology, ATI, and Curtiss-Wright, have shown strong year-to-date performance, helping support the fund’s returns.
Large Asset Base
The fund manages several billion dollars in assets, suggesting it is well-established and widely used by investors.
Negative Factors
High Sector Concentration
Almost all of the ETF’s exposure is in the industrials sector, so it is heavily tied to the fortunes of aerospace and defense companies.
Single-Country Risk
With nearly all holdings based in the United States, the fund is highly exposed to U.S.-specific economic and policy risks.
Moderate Expense Ratio
The ETF’s fee is higher than many broad market index funds, which can slightly reduce long-term returns for investors.
XAR vs. SPDR S&P 500 ETF (SPY)
AUM5.84B
RegionNorth America
Expense Ratio0.35%
Beta1.16
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. Volume247,653
30 Day Avg. Volume279,510
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
337.46Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering42
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 in U.S. companies tied to aircraft, space, and military equipment, including well-known names like Boeing and Howmet Aerospace. This fund gives investors a simple way to spread their money across many aerospace and defense businesses, which can benefit from government defense spending and long-term growth in air travel and space technology. However, XAR is focused on one sector, so its price can swing a lot and may fall if defense budgets or aerospace demand weaken.
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 firmly strapped into the U.S. aerospace and defense cockpit, with industrial names doing most of the flying. Materials and components players like Carpenter Technology and ATI have been rising steadily, giving the fund a solid lift, while BWX Technologies and Curtiss-Wright add to the tailwind with generally upbeat, if slightly pricey, performance. Boeing has perked up recently but remains a bit of a problem child after a choppy stretch. AeroVironment, meanwhile, has been lagging, acting more like drag than thrust in this otherwise strong sector-focused lineup.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| BWX Technologies | 3.74% | $219.67M | $20.44B | 104.65% | 75 Outperform | |
| Rocket Lab USA | 3.64% | $213.62M | $45.88B | 262.99% | 57 Neutral | |
| Boeing | 3.57% | $209.45M | $183.23B | 26.90% | 54 Neutral | |
| Hexcel | 3.47% | $203.78M | $6.74B | 82.63% | 73 Outperform | |
| Carpenter Technology | 3.44% | $202.07M | $21.29B | 115.30% | 75 Outperform | |
| Curtiss-Wright | 3.41% | $199.88M | $26.48B | 111.86% | 74 Outperform | |
| ATI | 3.22% | $188.99M | $21.05B | 184.96% | 78 Outperform | |
| Howmet Aerospace | 3.17% | $185.87M | $97.15B | 77.26% | 67 Neutral | |
| Woodward | 3.11% | $182.45M | $21.76B | 102.06% | 79 Outperform | |
| AeroVironment | 3.11% | $182.29M | $9.80B | 30.75% | 52 Neutral |
XAR Technical Analysis
Neutral
―
Price Trends
269.50
Negative
265.71
Negative
246.50
Positive
Market Momentum
-3.08
Positive
45.54
Neutral
16.86
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 265.71, equal to the 50-day MA of 269.50, and equal to the 200-day MA of 246.50, indicating a neutral trend. The MACD of -3.08 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 16.86 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
Performance Comparison
XAR
SPDR S&P Aerospace & Defense ETF
259.14
83.10
47.21%
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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FIDU
Fidelity MSCI Industrial Index 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.
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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