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GOVT vs. XAR
Performance
Return for Risk
Drawdowns
Volatility
Dividends

GOVT vs. XAR

Last updated Jun 7, 2026

GOVT (iShares U.S. Treasury Bond ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 10 years, GOVT returned 0.86%/yr vs 17.78%/yr for XAR. At a correlation of -0.13, they often move in opposite directions. GOVT charges 0.05%/yr vs 0.35%/yr for XAR.

Performance

GOVT vs. XAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Treasury Bond ETF (GOVT) and SPDR S&P Aerospace & Defense ETF (XAR). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, GOVT achieves a -0.33% return, which is significantly lower than XAR's 13.04% return. Over the past 10 years, GOVT has underperformed XAR with an annualized return of 0.86%, while XAR has yielded a comparatively higher 17.78% annualized return.

GOVT

1D
-0.35%
1M
-0.59%
YTD
-0.33%
6M
-0.22%
1Y
3.74%
3Y*
2.73%
5Y*
-0.50%
10Y*
0.86%

XAR

1D
-2.80%
1M
2.70%
YTD
13.04%
6M
18.20%
1Y
37.96%
3Y*
33.64%
5Y*
16.19%
10Y*
17.78%
*Multi-year figures are annualized to reflect compound growth (CAGR)

GOVT vs. XAR - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
GOVT
iShares U.S. Treasury Bond ETF		-0.33%3.77%2.95%4.17%-13.39%-1.11%7.28%7.36%0.26%2.19%
XAR
SPDR S&P Aerospace & Defense ETF		13.04%46.15%23.32%23.79%-5.02%2.31%6.18%39.33%-4.58%33.00%

Correlation

The correlation between GOVT and XAR is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.18

Correlation (3Y)
Calculated over the trailing 3-year period

0.12

Correlation (5Y)
Calculated over the trailing 5-year period

0.05

Correlation (10Y)
Calculated over the trailing 10-year period

-0.09

Correlation (All Time)
Calculated using the full available price history since Feb 27, 2012

-0.13

The correlation between GOVT and XAR shifts across timeframes, from -0.13 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Treasury Bond ETF

SPDR S&P Aerospace & Defense ETF

Often compared with GOVT:
GOVT vs. VGITGOVT vs. BNDGOVT vs. TLTGOVT vs. IEFGOVT vs. SHVGOVT vs. VTGGOVT vs. GOVZ
Often compared with XAR:
XAR vs. ITAXAR vs. PPAXAR vs. SHLDXAR vs. VOOXAR vs. UFOXAR vs. FSDAXXAR vs. DFEN

Return for Risk

GOVT vs. XAR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
GOVT
GOVT Risk / Return Rank: 2525
Overall Rank
GOVT Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
GOVT Sortino Ratio Rank: 2525
Sortino Ratio Rank
GOVT Omega Ratio Rank: 2323
Omega Ratio Rank
GOVT Calmar Ratio Rank: 2424
Calmar Ratio Rank
GOVT Martin Ratio Rank: 2525
Martin Ratio Rank
XAR
XAR Risk / Return Rank: 4444
Overall Rank
XAR Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
XAR Sortino Ratio Rank: 4545
Sortino Ratio Rank
XAR Omega Ratio Rank: 3939
Omega Ratio Rank
XAR Calmar Ratio Rank: 4949
Calmar Ratio Rank
XAR Martin Ratio Rank: 4343
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GOVT vs. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) and SPDR S&P Aerospace & Defense ETF (XAR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

GOVTXARDifference
Sharpe ratioReturn per unit of total volatility
0.89
1.51

-0.62

Sortino ratioReturn per unit of downside risk
1.33
2.16

-0.83

Omega ratioGain probability vs. loss probability

1.15

1.25

-0.10

Calmar ratioReturn relative to maximum drawdown

1.12

2.37

-1.25

Martin ratioReturn relative to average drawdown

3.25

6.72

-3.46

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GOVT vs. XAR - Sharpe Ratio Comparison

The current GOVT Sharpe Ratio is 0.89, which is lower than the XAR Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of GOVT and XAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

GOVTXARDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.89

1.51

-0.62

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.08

0.69

-0.78

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.16

0.72

-0.56

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.84

-0.59

Drawdowns

GOVT vs. XAR - Drawdown Comparison

The maximum GOVT drawdown since its inception was -19.07%, smaller than the maximum XAR drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for GOVT and XAR.

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Drawdown Indicators

GOVTXARDifference

Max Drawdown

Largest peak-to-trough decline

-19.07%

-46.37%

+27.30%

Max Drawdown (1Y)

Largest decline over 1 year

-2.85%

-17.22%

+14.37%

Max Drawdown (3Y)

Largest decline over 3 years

-5.43%

-19.73%

+14.30%

Max Drawdown (5Y)

Largest decline over 5 years

-16.60%

-32.40%

+15.80%

Max Drawdown (10Y)

Largest decline over 10 years

-19.07%

-46.37%

+27.30%

Current Drawdown

Current decline from peak

-7.38%

-6.85%

-0.53%

Average Drawdown

Average peak-to-trough decline

-5.25%

-6.78%

+1.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.98%

6.07%

-5.09%

Volatility

GOVT vs. XAR - Volatility Comparison

The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.06%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 9.26%. This indicates that GOVT experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

GOVTXARDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.06%

9.26%

-8.20%

Volatility (6M)

Calculated over the trailing 6-month period

2.54%

22.69%

-20.15%

Volatility (1Y)

Calculated over the trailing 1-year period

3.60%

27.06%

-23.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.04%

23.46%

-17.42%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.22%

24.64%

-19.42%

GOVT vs. XAR - Expense Ratio Comparison

GOVT has a 0.05% expense ratio, which is lower than XAR's 0.35% expense ratio.

Dividends

GOVT vs. XAR - Dividend Comparison

GOVT's dividend yield for the trailing twelve months is around 3.59%, more than XAR's 0.32% yield.

PositionTTM20252024202320222021202020192018201720162015
GOVT
iShares U.S. Treasury Bond ETF		3.59%3.49%3.14%2.65%1.77%0.96%2.17%1.98%1.97%1.57%1.40%1.25%
XAR
SPDR S&P Aerospace & Defense ETF		0.32%0.40%0.66%0.54%0.50%0.83%0.63%0.75%1.19%0.76%1.09%2.31%

Frequently Asked Questions

GOVT and XAR have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XAR has higher volatility (9.26%) compared to GOVT (1.06%). In terms of maximum drawdown, GOVT dropped -19.07% vs XAR's -46.37%.

On 10-year performance, XAR leads with 17.78% vs 0.86% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XAR has performed better with a 17.78% return vs 0.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

GOVT is cheaper with a 0.05% expense ratio, compared with 0.35% for XAR.

GOVT has the higher dividend yield at 3.59%, compared with 0.32% for XAR.

GOVT is categorized as Government Bonds, while XAR is Aerospace & Defense. GOVT tracks ICE U.S. Treasury Core Bond Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.05% for GOVT and 0.35% for XAR.

XAR currently has the higher Sharpe Ratio (1.51 vs 0.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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