MISL vs. XAR

Last updated Jun 4, 2026

MISL (First Trust Indxx Aerospace & Defense ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 3 years, MISL returned 28.35%/yr vs 34.11%/yr for XAR. Their correlation of 0.92 suggests significant overlap in exposure. MISL charges 0.60%/yr vs 0.35%/yr for XAR.

Performance

MISL vs. XAR - Performance Comparison

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

Returns By Period

In the year-to-date period, MISL achieves a 7.59% return, which is significantly lower than XAR's 13.40% return.

MISL

• 1D: -2.71%
• 1M: 5.48%
• YTD: 7.59%
• 6M: 13.84%
• 1Y: 32.38%
• 3Y*: 28.35%
• 5Y*: —
• 10Y*: —

XAR

• 1D: -2.08%
• 1M: 7.34%
• YTD: 13.40%
• 6M: 20.10%
• 1Y: 41.33%
• 3Y*: 34.11%
• 5Y*: 16.26%
• 10Y*: 18.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MISL vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	7.59%	41.24%	20.48%	14.78%	8.22%
XAR SPDR S&P Aerospace & Defense ETF	13.40%	46.15%	23.32%	23.79%	7.54%

Correlation

The correlation between MISL and XAR is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (All Time) Calculated using the full available price history since Oct 27, 2022	0.92

The correlation between MISL and XAR has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

MISL vs. XAR - Sectors Allocation Comparison

Sectors	MISL	XAR
Industrials	83.0%	99.4%
Technology	17.0%	0.5%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

MISL vs. XAR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MISL

MISL Risk / Return Rank: 39
MISL Sharpe Ratio Rank: 40
MISL Sortino Ratio Rank: 41
MISL Omega Ratio Rank: 35
MISL Calmar Ratio Rank: 42
MISL Martin Ratio Rank: 35

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 43
XAR Sortino Ratio Rank: 43
XAR Omega Ratio Rank: 38
XAR Calmar Ratio Rank: 48
XAR Martin Ratio Rank: 42

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.

MISL vs. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) 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.

	MISL	XAR	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.55	-0.11
Sortino ratio: Return per unit of downside risk	2.10	2.21	-0.11
Omega ratio: Gain probability vs. loss probability	1.24	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	2.07	2.41	-0.34
Martin ratio: Return relative to average drawdown	5.49	6.85	-1.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MISL vs. XAR - Sharpe Ratio Comparison

The current MISL Sharpe Ratio is 1.44, which is comparable to the XAR Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of MISL 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.

Sharpe Ratios by Period

	MISL	XAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	1.55	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.70	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.73	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.35	0.85	+0.50

Drawdowns

MISL vs. XAR - Drawdown Comparison

The maximum MISL drawdown since its inception was -17.91%, smaller than the maximum XAR drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for MISL and XAR.

Drawdown Indicators

	MISL	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-17.91%	-46.37%	+28.46%
Max Drawdown (1Y) Largest decline over 1 year	-15.69%	-17.22%	+1.53%
Max Drawdown (3Y) Largest decline over 3 years	-17.91%	-19.73%	+1.82%
Max Drawdown (5Y) Largest decline over 5 years	—	-32.40%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-46.37%	—
Current Drawdown Current decline from peak	-9.75%	-6.55%	-3.20%
Average Drawdown Average peak-to-trough decline	-3.50%	-6.79%	+3.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	6.05%	-0.14%

Volatility

MISL vs. XAR - Volatility Comparison

The current volatility for First Trust Indxx Aerospace & Defense ETF (MISL) is 8.50%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 9.52%. This indicates that MISL 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.

Volatility by Period

	MISL	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.50%	9.52%	-1.02%
Volatility (6M) Calculated over the trailing 6-month period	19.14%	22.39%	-3.25%
Volatility (1Y) Calculated over the trailing 1-year period	22.60%	26.81%	-4.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.14%	23.41%	-4.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	24.62%	-5.48%

MISL vs. XAR - Expense Ratio Comparison

MISL has a 0.60% expense ratio, which is higher than XAR's 0.35% expense ratio.

Dividends

MISL vs. XAR - Dividend Comparison

MISL's dividend yield for the trailing twelve months is around 0.36%, more than XAR's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MISL First Trust Indxx Aerospace & Defense ETF	0.36%	0.40%	0.74%	0.63%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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

Can I hold both MISL and XAR in my portfolio?

With a correlation of 0.95, MISL and XAR move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MISL or XAR?

XAR has higher volatility (9.52%) compared to MISL (8.50%). In terms of maximum drawdown, MISL dropped -17.91% vs XAR's -46.37%.

Which ETF is better, MISL or XAR?

On 3-year performance, XAR leads with 34.11% vs 28.35% for MISL. On fees, XAR is cheaper at 0.35% per year. On volatility, MISL has been the lower-risk option at 8.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MISL or XAR?

Over the 3-year period, XAR has performed better with a 34.11% return vs 28.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MISL or XAR?

XAR is cheaper with a 0.35% expense ratio, compared with 0.60% for MISL.

Which ETF pays a higher dividend yield, MISL or XAR?

MISL has the higher dividend yield at 0.36%, compared with 0.32% for XAR.

What is the main difference between MISL and XAR?

MISL is categorized as Industrials Equities, while XAR is Aerospace & Defense. MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.60% for MISL and 0.35% for XAR.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.55 vs 1.44), 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.