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XAR - ETF AI Analysis

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XAR

SPDR S&P Aerospace & Defense ETF (XAR)

Rating:66Neutral
Price Target:
XAR, the SPDR S&P Aerospace & Defense ETF, earns a solid overall rating driven mainly by strong, established aerospace and defense names like General Dynamics, ATI, RTX, GE Aerospace, and Lockheed Martin, which benefit from robust financial performance, healthy backlogs, and positive earnings outlooks. These strengths are partly offset by more speculative or financially weaker holdings such as Archer Aviation and highly leveraged or high-valuation names like Karman Holdings, along with some bearish or mixed technical signals across several stocks. The main risk factor is the fund’s focus on the aerospace and defense sector, which concentrates exposure to industry-specific challenges like high valuations, leverage, and operational or regulatory uncertainties.
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)

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
RTX3.34%$180.26M$265.28B24.33%
74
Outperform
Archer Aviation3.28%$177.19M$4.02B-43.57%
49
Neutral
General Dynamics3.18%$171.99M$97.40B9.67%
80
Outperform
VSE3.11%$168.21M$5.19B11.13%
67
Neutral
ATI3.08%$166.54M$25.82B141.78%
78
Outperform
Lockheed Martin3.08%$166.21M$123.99B13.55%
70
Outperform
Boeing3.04%$164.12M$159.62B-8.65%
54
Neutral
Hexcel3.02%$163.21M$6.89B46.76%
73
Outperform
Axon Enterprise2.99%$161.57M$38.05B-37.69%
58
Neutral
Northrop Grumman2.97%$160.30M$75.40B-8.67%
76
Outperform

XAR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
267.05
Negative
100DMA
269.78
Negative
200DMA
267.16
Negative
Market Momentum
MACD
-8.83
Positive
RSI
27.68
Positive
STOCH
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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.15B0.35%
66
Neutral
$9.04B0.69%
66
Neutral
$8.04B0.09%
70
Neutral
$7.61B0.58%
68
Neutral
$2.36B0.08%
71
Outperform
$2.05B0.37%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XAR
SPDR S&P Aerospace & Defense ETF
241.32
15.18
6.71%
AIRR
First Trust RBA American Industrial Renaissance ETF
VIS
Vanguard Industrials ETF
PPA
Invesco Aerospace & Defense ETF
FIDU
Fidelity MSCI Industrial Index ETF
IYT
iShares US Transportation 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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