Aerospace ETF Showdown: XAR vs. ITA
Both the State Street SPDR S Aerospace Defense ETF (NYSEMKT:XAR) and the iShares U.S. Aerospace Defense ETF (NYSEMKT:ITA) target the U.S. aerospace and defense industry, a sector often driven by government contracts and global security needs. While ITA follows a traditional market-cap weighting, XAR utilizes a modified equal-weight strategy, offering a different way to gain exposure to these industrial giants for long-term investors.
Beta measures price volatility relative to the S 500; Beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is slightly more affordable with an expense ratio of 0.35%, undercutting the iShares fund 0.38% fee. However, investors seeking income may prefer the iShares fund, which provides a higher trailing distribution yield of 0.49%.
Source Fool.com
