(XAR) S&P Aerospace & Defense - Overview

SPDR® S&P Aerospace & Defense ETF (XAR) seeks to mirror the S&P Aerospace & Defense Select Industry Index by using a sampling approach, allocating at least 80% of its assets to the index’s constituents. The fund is classified as an industrials-focused ETF domiciled in the United States.

As of February 2026, XAR carries an expense ratio of 0.35% and manages roughly $2.1 billion in assets. Its three largest holdings are Lockheed Martin (≈9.8% of net assets), Raytheon Technologies (≈8.5%), and Boeing (≈7.2%). The ETF posted a year-to-date return of about 5.2%, outpacing the broader aerospace sector’s 3.9% gain but lagging the S&P 500’s 6.8% performance. Key drivers for the underlying industry include a projected U.S. defense budget of $842 billion for FY 2026, a 3% global rise in defense spending, and a rebound in commercial aviation demand following the post-pandemic recovery.

Consider exploring ValueRay for deeper analysis.

• Geopolitical tensions increase global defense spending
• Government budget cycles impact aerospace and defense contracts
• Commercial aerospace demand recovers post-pandemic
• Supply chain disruptions raise production costs
• Regulatory changes affect defense program approvals