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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 Top Holdings
Several top holdings, such as Rocket Lab USA and Kratos Defense, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Focused Sector Exposure
The ETF's concentration in the aerospace and defense industry allows investors to target a specialized and growing market segment.
Reasonable Expense Ratio
The ETF charges a relatively low expense ratio, making it cost-effective compared to many actively managed funds.
Negative Factors
High Sector Concentration
The ETF is almost entirely invested in the industrials sector, which increases vulnerability to industry-specific risks.
Limited Geographic Diversification
With nearly all holdings based in the U.S., the fund lacks exposure to international markets, reducing global diversification.
Mixed Performance Among Holdings
Some holdings, such as Archer Aviation and Lockheed Martin, have shown weaker year-to-date performance, potentially dragging on overall returns.
XAR vs. SPDR S&P 500 ETF (SPY)
AUM4.85B
RegionNorth America
Expense Ratio0.35%
Beta1.13
IssuerSPDR
Inception DateSep 28, 2011
Dividend Yield0.38%
Asset ClassEquity
Index TrackedS&P Aerospace & Defense Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume113,100
30 Day Avg. Volume146,479
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
287.41Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering41
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XAR Summary
The SPDR S&P Aerospace & Defense ETF (XAR) focuses on companies in the aerospace and defense industries, following the S&P Aerospace & Defense Select Industry Index. It includes well-known names like Lockheed Martin and GE Aerospace, along with smaller innovators in aircraft manufacturing and defense technology. Investors might consider XAR for diversification and exposure to a sector tied to global security and transportation advancements. However, new investors should be aware that the ETF’s performance can be influenced by changes in government defense budgets and economic cycles.
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
The SPDR S&P Aerospace & Defense ETF (XAR) is flying high on the wings of Rocket Lab USA, which has been rising thanks to strong revenue growth and strategic contract wins, though profitability challenges remain a headwind. Kratos Defense is also contributing positively with its future growth prospects, but bearish momentum is holding it back slightly. Meanwhile, steady performers like Carpenter Technology and ATI provide a solid foundation, while RTX is lagging a bit due to operational challenges. With a clear focus on U.S.-based aerospace and defense companies, this fund is heavily concentrated in industrials, offering a niche yet resilient investment opportunity.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Rocket Lab USA | 4.33% | $210.10M | $41.23B | 171.38% | 57 Neutral | |
| Karman Holdings Inc. | 3.84% | $186.16M | $10.69B | ― | 62 Neutral | |
| GE Aerospace | 3.59% | $174.21M | $334.11B | 84.00% | 72 Outperform | |
| ATI | 3.58% | $173.74M | $15.85B | 107.77% | 78 Outperform | |
| Huntington Ingalls | 3.54% | $171.78M | $13.95B | 85.29% | 69 Neutral | |
| HEICO | 3.54% | $171.40M | $40.72B | 40.53% | 77 Outperform | |
| Carpenter Technology | 3.53% | $171.38M | $16.66B | 90.40% | 75 Outperform | |
| Boeing | 3.52% | $170.86M | $170.83B | 20.94% | 54 Neutral | |
| Woodward | 3.52% | $170.60M | $18.79B | 82.82% | 79 Outperform | |
| Howmet Aerospace | 3.52% | $170.56M | $85.31B | 88.54% | 67 Neutral |
XAR Technical Analysis
Positive
―
Price Trends
235.91
Positive
230.09
Positive
208.24
Positive
Market Momentum
3.83
Negative
66.72
Neutral
97.65
Negative
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 234.76, equal to the 50-day MA of 235.91, and equal to the 200-day MA of 208.24, indicating a bullish trend. The MACD of 3.83 indicates Negative momentum. The RSI at 66.72 is Neutral, neither overbought nor oversold. The STOCH value of 97.65 is Negative, 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
250.54
82.30
48.92%
PPA
Invesco Aerospace & Defense ETF
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AIRR
First Trust RBA American Industrial Renaissance 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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