XAR - ETF AI Analysis
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SPDR S&P Aerospace & Defense ETF (XAR)
XAR, the SPDR S&P Aerospace & Defense ETF, has a solid overall rating that reflects generally strong underlying companies but also some valuation and sector risks. High-quality holdings like General Dynamics, Northrop Grumman, and HEICO support the fund’s rating through strong financial performance, robust backlogs, and positive growth outlooks. However, several key holdings such as Lockheed Martin, Transdigm, and others face high valuation, leverage, and government-related risks, and the fund’s focus on the aerospace and defense sector means it is exposed to industry-specific and government spending uncertainties.
XAR vs. SPDR S&P 500 ETF (SPY)
- AUM
- 5.20B
- Region
- North America
- Expense Ratio
- 0.35%
- Beta
- 1.30
- Issuer
- SPDR
- Inception Date
- Sep 28, 2011
- Dividend Yield
- 0.19%
- Asset Class
- Equity
- Index Tracked
- S&P Aerospace & Defense Select Industry
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, giving you a focused way to invest in the aerospace and defense theme. Well-known holdings include Lockheed Martin and General Dynamics, major suppliers to government defense programs. Someone might consider XAR for potential long-term growth and diversification within the industrial sector. A key risk is that it is heavily concentrated in aerospace and defense, so its value can rise or fall with changes in defense spending and global conflict trends.
How much will it cost me?
XAR has an annual expense ratio of 0.35%, which means you’ll pay about $3.50 per year for every $1,000 invested. This cost is higher than the average broad-market index ETF because XAR is a specialized, sector-focused fund that requires more targeted management.
What would affect this ETF?
XAR could benefit if U.S. defense spending stays strong or increases, and if demand for commercial air travel and new aerospace technologies grows, supporting its major holdings like Lockheed Martin, Northrop Grumman, and RTX. On the negative side, cuts to government defense budgets, geopolitical de-escalation that reduces weapons demand, stricter regulations on defense contractors, or an economic slowdown that hurts airline and aircraft orders could weigh on this U.S.-focused industrials ETF.
XAR Top 10 Holdings
XAR is essentially a bet on U.S. aerospace and defense, with the heavy hitters calling the shots. Lockheed Martin and Northrop Grumman have been rising lately, helping to pull the fund higher as defense spending stays robust. RTX and General Dynamics are steadier contributors, adding some balance without much drama. On the other side, names like TransDigm and Huntington Ingalls have been lagging, acting as a bit of a weight on returns. Overall, it’s a tightly focused, U.S.-centric play on defense contractors and aerospace suppliers.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 LMT | Lockheed Martin | 3.63% | $190.71M | $147.61B | 22.69% | 70Outperform |
 HII | Huntington Ingalls | 3.36% | $176.64M | $12.49B | -3.77% | 69Neutral |
 LHX | L3Harris Technologies | 3.30% | $173.56M | $51.70B | -10.78% | 70Neutral |
 NOC | Northrop Grumman | 3.18% | $167.06M | $78.18B | -8.97% | 76Outperform |
 TXT | Textron | 3.27% | $171.92M | $14.86B | 8.64% | 75Outperform |
 GD | General Dynamics | 3.16% | $166.21M | $101.20B | 6.23% | 80Outperform |
 HEI | HEICO | 3.22% | $169.25M | $39.82B | 6.80% | 77Outperform |
 KRMN | Karman Holdings Inc. | 3.02% | $158.81M | $5.24B | -59.66% | 62Neutral |
 TDG | Transdigm Group | 3.19% | $167.96M | $66.78B | -5.81% | 69Neutral |
 HONA | Honeywell Aerospace | 3.09% | $162.64M | $49.93B | -21.81% | ―― |
XAR Technical Analysis
Price Trends
Market Momentum
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 225.53 is above the 20-day moving average (MA) of 225.19, below the 50-day MA of 236.37, and below the 200-day MA of 263.52, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 72.90 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 |
|---|---|---|---|---|---|
| XAR | $225.53 | $233.00(3.31% Upside) | $5.20B | 0.35% | 64Neutral |
 AIRR | $97.39 | $146.69(50.62% Upside) | $8.63B | 0.69% | 68Neutral |
 VIS | $324.91 | $419.20(29.02% Upside) | $7.87B | 0.09% | 70Outperform |
 PPA | $157.25 | $201.92(28.41% Upside) | $7.67B | 0.58% | 67Neutral |
 FIDU | $89.66 | $110.20(22.90% Upside) | $2.30B | 0.08% | 70Outperform |
 IYT | $85.02 | $100.65(18.39% Upside) | $2.04B | 0.37% | 71Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| XAR | SPDR S&P Aerospace & Defense ETF | 225.53 | -7.05 | -3.03% | |
| AIRR | First Trust RBA American Industrial Renaissance ETF | 97.39 | 0.48 | 0.50% | |
| VIS | Vanguard Industrials ETF | 324.91 | 33.36 | 11.44% | |
| PPA | Invesco Aerospace & Defense ETF | 157.25 | 5.30 | 3.49% | |
| FIDU | Fidelity MSCI Industrial Index ETF | 89.66 | 9.04 | 11.22% | |
| IYT | iShares US Transportation ETF | 85.02 | 14.64 | 20.80% |
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.