Is SPDR S&P Aerospace & Defense ETF (XAR) a Strong ETF Right Now?

Core Viewpoint - The SPDR S&P Aerospace & Defense ETF (XAR) is a smart beta ETF designed to provide broad exposure to the aerospace and defense sector, with a focus on outperforming traditional market-cap weighted indices [1][5]. Fund Overview - XAR was launched on September 28, 2011, and is managed by State Street Global Advisors, amassing over $3.79 billion in assets, making it one of the larger ETFs in the Industrials category [1][5]. - The fund aims to match the performance of the S&P Aerospace & Defense Select Industry Index, which is a modified equal weight index representing the aerospace and defense sub-industry of the S&P Total Stock Market Index [6]. Cost and Expenses - The annual operating expenses for XAR are 0.35%, positioning it as one of the least expensive options in its category [7]. - The fund has a 12-month trailing dividend yield of 0.51% [7]. Sector Exposure and Holdings - XAR's portfolio is entirely allocated to the Industrials sector, with its top holdings including Archer Aviation Inc (5.15%), Aerovironment Inc, and Curtiss Wright Corp, which together account for approximately 45.28% of total assets [8][9]. Performance Metrics - As of July 17, 2025, XAR has gained about 31.34% year-to-date and approximately 46.4% over the past year, with a trading range between $140.71 and $217.46 during the last 52 weeks [11]. - The fund has a beta of 1.08 and a standard deviation of 21.19% over the trailing three-year period, indicating medium risk [11]. Alternatives - Other ETFs in the aerospace and defense space include Invesco Aerospace & Defense ETF (PPA) with $5.96 billion in assets and iShares U.S. Aerospace & Defense ETF (ITA) with $8.73 billion in assets, offering different expense ratios and strategies [12][13].