ARK Space & Defense or SPDR Aerospace & Defense: Which ETF Can Power Your Portfolio?
ARKX delivers higher returns but charges double the fees and carries greater volatility. XAR offers lower costs and broader diversification across 50 holdings.
The ARK Space & Defense Innovation ETF (ARKX) and the State Street SPDR S&P Aerospace & Defense ETF (XAR) are two distinct investment vehicles catering to the aerospace and defense sector. ARKX employs active management to focus on space technology, while XAR offers a lower-cost, equal-weighted exposure to well-established companies in the industry.
The aerospace and defense industry comprises a blend of government spending and technical innovation. Investors have the option to select either an actively managed portfolio targeting space-specific technology or a diversified, index-based fund. This comparison examines the differences between a high-conviction, space-focused strategy and a more broadly diversified approach.
Beta, a measure of price volatility relative to the S&P 500, is calculated from monthly returns over the available fund's history, up to five years. The 1-year return represents the total return over the trailing twelve months. The dividend yield is the trailing-12-month distribution yield as of the close of trading on September 28, 2026.
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