ARK Space & Defense or SPDR Aerospace & Defense: Which ETF Can Power Your Portfolio?
Key PointsState Street SPDR S&P Aerospace & Defense ETF offers a lower expense ratio of 0.35% compared to the 0.75% fee for ARK Space & Defense Innovation ETF.
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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