XAR - ETF AI Analysis
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SPDR S&P Aerospace & Defense ETF (XAR)
Rating:66Neutral
Price Target:―
Positive Factors
Broad Aerospace & Defense Exposure
The ETF holds a wide mix of aerospace and defense companies, giving investors diversified access to this specialized industry.
Strong Year-To-Date Performance
The fund’s overall performance so far this year has been strong, suggesting its holdings have generally been working well together.
Several Strong-Performing Top Holdings
Many of the largest positions, such as Hexcel, Howmet Aerospace, Woodward, and Carpenter Technology, have shown strong gains, supporting the ETF’s returns.
Negative Factors
High Industry Concentration
With almost all assets in the industrials sector and focused on aerospace and defense, the fund is heavily exposed to swings in this single industry.
Limited Geographic Diversification
The ETF invests almost entirely in U.S. companies, offering little protection if the U.S. market or economy faces specific challenges.
Mixed Performance Among Top Holdings
A few key holdings, including Axon Enterprise and StandardAero, have shown weak or negative performance, which can drag on the fund’s overall results.
XAR vs. SPDR S&P 500 ETF (SPY)
AUM6.15B
RegionNorth America
Expense Ratio0.35%
Beta1.32
IssuerSPDR
Inception DateSep 28, 2011
Dividend Yield0.33%
Asset ClassEquity
Index TrackedS&P Aerospace & Defense Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume329,533
30 Day Avg. Volume231,198
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
357.29Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering48
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, defense systems, and related technology. Well-known names in the fund include General Dynamics and GE Aerospace, along with other specialized aerospace suppliers. Someone might invest in XAR to tap into potential long-term growth in defense spending and air travel while spreading money across many companies in this niche. A key risk is that it is heavily focused on the aerospace and defense sector, so its value can rise or fall sharply with changes in that industry and overall market conditions.
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 planted in the U.S. aerospace and defense arena, with a mix of established contractors and up‑and‑coming innovators driving the story. ATI and Axon are doing much of the heavy lifting, with rising share prices reflecting strong momentum in specialized materials and defense technology. VSE has also been a quiet but steady contributor. On the flip side, Archer Aviation and Karman Holdings are more like turbulence than tailwind right now, with lagging performance that tempers the fund’s gains. Overall, the ETF is tightly focused on industrials and defense, with little geographic or sector drift.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| RTX | 3.34% | $180.26M | $265.28B | 24.33% | 74 Outperform | |
| Archer Aviation | 3.28% | $177.19M | $4.02B | -43.57% | 49 Neutral | |
| General Dynamics | 3.18% | $171.99M | $97.40B | 9.67% | 80 Outperform | |
| VSE | 3.11% | $168.21M | $5.19B | 11.13% | 67 Neutral | |
| ATI | 3.08% | $166.54M | $25.82B | 141.78% | 78 Outperform | |
| Lockheed Martin | 3.08% | $166.21M | $123.99B | 13.55% | 70 Outperform | |
| Boeing | 3.04% | $164.12M | $159.62B | -8.65% | 54 Neutral | |
| Hexcel | 3.02% | $163.21M | $6.89B | 46.76% | 73 Outperform | |
| Axon Enterprise | 2.99% | $161.57M | $38.05B | -37.69% | 58 Neutral | |
| Northrop Grumman | 2.97% | $160.30M | $75.40B | -8.67% | 76 Outperform |
XAR Technical Analysis
Negative
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Price Trends
267.05
Negative
269.78
Negative
267.16
Negative
Market Momentum
-8.83
Positive
27.68
Positive
22.06
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XAR, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 254.68, equal to the 50-day MA of 267.05, and equal to the 200-day MA of 267.16, indicating a bearish trend. The MACD of -8.83 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 22.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XAR.
XAR Peer Comparison
Comparison Results
Performance Comparison
XAR
SPDR S&P Aerospace & Defense ETF
241.32
15.18
6.71%
AIRR
First Trust RBA American Industrial Renaissance ETF
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VIS
Vanguard Industrials ETF
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―
―
PPA
Invesco Aerospace & Defense ETF
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―
FIDU
Fidelity MSCI Industrial Index ETF
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IYT
iShares US Transportation 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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