SPDR S&P Aerospace & Defense ETF

XAR

Market cap $4.91B

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.

Launched on 09/28/2011, the SPDR S&P Aerospace & Defense ETF (XAR) is a smart beta exchange traded fund offering broad exposure to the Industrials ETFs category of the market.

The SPDR S&P Aerospace & Defense ETF offers diversified exposure to U.S. Aerospace & Defense stocks, balancing large, mid, and small caps with a modified equal weighting scheme. The U.S. aerospace and defense industry is supported by consistent increases in national defense spending, with more possible in the short/medium term under the current administration. XAR has delivered strong returns in both bull and bear markets and is one of only 12 U.S. Equity ETFs to limit losses to only 5% between 2012 and 2024.

Defense stocks are overvalued with high forward P/Es and a strong war premium, making volatility risk significant, especially for leveraged ETFs like DFEN. DFEN's daily 3x leverage amplifies volatility drag, making it unsuitable for long-term holding. But beware, this does not necessarily mean the end of the bullish phase for the aerospace and defense sector.

Various strategies for tracking the aerospace and defense industry have made good money for investors over the past 10 years.

European defense stocks experienced a sharp sell-off this week, reminding investors just how news-oriented the sector can be.

Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the SPDR S&P Aerospace & Defense ETF (XAR) is a passively managed exchange traded fund launched on September 28, 2011.