State Street SPDR S&P Aerospace & Defense ETF

XAR

Market cap $4.44B

A smart beta exchange traded fund, the State Street SPDR S&P Aerospace & Defense ETF (XAR) debuted on 09/28/2011, and offers broad exposure to the Industrials ETFs category of the market.

Global defense spending has been rising due to conflicts and geopolitical tensions. European and Asian nations are spending more on their militaries at President Donald Trump's insistence.

Defense ETFs like XAR and ITA slipped in November, but long-term prospects remain strong amid surging global defense spending.

SPDR S&P Aerospace & Defense ETF (XAR) has outperformed peers and the major market indices, driven by rapid innovation in drone and AI defense technologies. XAR's equal-weight structure favors smaller, faster-growing defense companies like AVAV and KTOS, which have delivered exceptional returns. Due to its strong performance, XAR now trades at a premium valuation with signs of froth, raising risks for new investors, especially in taxable accounts.

Global security concerns are driving massive inflows into defense sector ETFs. FactSet data showing a 573% surge in sector ETFs in 2025.

Looking for broad exposure to the Industrials - Aerospace & Defense segment of the equity market? You should consider the SPDR S&P Aerospace & Defense ETF (XAR), a passively managed exchange traded fund launched on September 28, 2011.

CNBC's “Halftime Report” team detail their final trades and stock picks.

Defense ETFs surge ahead of Q3 earnings, fueled by record military spending and global demand for advanced defense tech.

Defense ETFs are set to rally as the U.S.-UK Technology Prosperity Deal fuels AI-driven defense growth with $350B investment.

Defense ETFs surged as NATO airspace breaches by Russian drones and a major spending pledge fueled investor demand.