XAR: SPDR S&P Aerospace & Defense ETF returns, drawdowns and risk
Funds on a single sector of the US market: financials, energy, health care, industrials and more.
Data updated October 2026
XAR · US exchange · USDCategory: US sector ETFsData from June 2020
From June 2020 to October 2026 XAR returned 15.8% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $25,453.
Its deepest fall was 32.4%, from June 2021 to September 2022, and it took about 30 months to get back to the previous high. Annual volatility was 24.6%; at the last close it was 25.1% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 76 months both have data, the correlation of monthly returns was 0.69: they moved together only in part. Beta was 1.07. In months when SPY rose, XAR moved 100% as much on average; in months when SPY fell, 92% as much.
Key figures
- Annual return (CAGR)
- +15.8%
- 1-year return
- −7.8%
- 5 years, a year
- +13.0%
- 10 years, a year
- —
- Annual volatility
- 24.6%
- Maximum drawdown
- −32.4%
- Sharpe ratio
- 0.61
- Worst year
- 2022: −5.0%
Trailing returns
| Period | XAR | SPY |
|---|---|---|
| 1 year | −7.8% | +16.6% |
| 3 years, a year | +25.3% | +23.1% |
| 5 years, a year | +13.0% | +12.7% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: XAR vs SPY
Month-end values from July 2020, the first month both funds have data.
XAR drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | XAR | SPY |
|---|---|---|
| 2026(partial) | −7.8% | +13.3% |
| 2025 | +46.2% | +17.7% |
| 2024 | +23.3% | +24.9% |
| 2023 | +23.8% | +26.2% |
| 2022 | −5.0% | −18.2% |
| 2021 | +2.3% | +28.7% |
| 2020(partial) | +27.3% | — |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of XAR?
From June 2020 to October 2026 XAR returned 15.8% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +13.0% a year. Over the last 12 months: −7.8%.
What was the worst drawdown of XAR?
32.4%, from June 2021 to September 2022; it took about 30 months from the previous high to get back to it.
How volatile is XAR?
Annual volatility was 24.6% over the period. Its worst month was −12.0% and 55% of months were positive. Worst calendar year: 2022 (−5.0%).
How closely does XAR follow SPY?
Over 76 months the correlation of monthly returns was 0.69, so they moved together only in part, with a beta of 1.07.
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Other US sector ETFs
- All US sector ETFsReturns and risk side by side
- XLF — Financial Select Sector SPDR FundCAGR +16.3%
- XLV — Health Care Select Sector SPDR FundCAGR +11.0%
- XLI — Industrial Select Sector SPDR FundCAGR +10.3%
- XLP — Consumer Staples Select Sector SPDR FundCAGR +9.2%
- XLC — Communication Services Select Sector SPDR FundCAGR +12.7%
- VHT — Vanguard Health Care ETFCAGR +10.3%
- VFH — Vanguard Financials ETFCAGR +16.5%
- VDE — Vanguard Energy ETFCAGR +26.4%
- IBB — iShares Biotechnology ETFCAGR +11.2%
- XBI — SPDR S&P Biotech ETFCAGR +6.2%
- KRE — SPDR S&P Regional Banking ETFCAGR +4.4%
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.