UFO vs. XAR

Last updated Aug 2, 2026

UFO (Procure Space ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - UFO is a Global Equities fund tracking the S-Network Space Index, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 5 years, UFO returned 9.89%/yr vs 16.36%/yr for XAR. Their 0.76 correlation means they have sometimes moved together and sometimes differently. UFO charges 0.75%/yr vs 0.35%/yr for XAR.

Performance

UFO vs. XAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Procure Space ETF (UFO) 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, UFO achieves a 13.44% return, which is significantly higher than XAR's 9.86% return.

UFO

• 1D: -0.07%
• 1M: -13.58%
• 6M: -3.51%
• YTD: 13.44%
• 1Y: 49.19%
• 3Y*: 31.94%
• 5Y*: 9.89%
• 10Y*: —
• ALL TIME*: 9.48%

XAR

• 1D: 0.77%
• 1M: -7.89%
• 6M: -2.90%
• YTD: 9.86%
• 1Y: 24.03%
• 3Y*: 29.11%
• 5Y*: 16.36%
• 10Y*: 17.38%
• ALL TIME*: 18.36%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
UFO Procure Space ETF	$22.27M	$25.83M	$70.04M
XAR SPDR S&P Aerospace & Defense ETF	$64.82M	$59.56M	$61.10M

UFO vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
UFO Procure Space ETF	13.44%	67.36%	27.22%	-2.34%	-25.85%	7.17%	-2.15%	5.66%
XAR SPDR S&P Aerospace & Defense ETF	9.86%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	18.71%

Correlation

The correlation between UFO and XAR is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.79
Correlation (3Y) Balances recent behavior with more history.	0.72
Correlation (5Y) Shows whether the relationship held over a longer period.	0.75
Correlation (All Time) Calculated using the full available price history since Apr 11, 2019	0.76

The correlation between UFO and XAR has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.

UFO vs. XAR - Sectors Allocation Comparison

Sectors	UFO	XAR
Industrials	48.9%	95.8%
Communication Services	28.8%	-
Technology	20.8%	1.0%
Financial Services	0.0%	-
Basic Materials	-	3.1%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

UFO vs. XAR — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

UFO

UFO Risk / Return Rank: 43
UFO Sharpe Ratio Rank: 47
UFO Sortino Ratio Rank: 49
UFO Omega Ratio Rank: 44
UFO Calmar Ratio Rank: 38
UFO Martin Ratio Rank: 36

XAR

XAR Risk / Return Rank: 34
XAR Sharpe Ratio Rank: 32
XAR Sortino Ratio Rank: 34
XAR Omega Ratio Rank: 31
XAR Calmar Ratio Rank: 38
XAR Martin Ratio Rank: 35

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

UFO vs. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Procure Space ETF (UFO) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	UFO	XAR	Difference
Sharpe ratio: Return per unit of total volatility	1.16	0.79	+0.37
Sortino ratio: Return per unit of downside risk	1.76	1.29	+0.47
Omega ratio: Gain probability vs. loss probability	1.20	1.15	+0.06
Calmar ratio: Return relative to maximum drawdown	1.32	1.33	-0.01
Martin ratio: Return relative to average drawdown	3.57	3.45	+0.13

UFO vs. XAR - Sharpe Ratio Comparison

The current UFO Sharpe Ratio is 1.16, which is higher than the XAR Sharpe Ratio of 0.79. The chart below compares the historical Sharpe Ratios of UFO 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.

Drawdowns

UFO vs. XAR - Drawdown Comparison

The maximum UFO drawdown since its inception was -50.33%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for UFO and XAR.

Drawdown Indicators

	UFO	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-50.33%	-46.37%	-3.96%
Max Drawdown (1Y) Largest decline over 1 year	-36.71%	-17.22%	-19.49%
Max Drawdown (3Y) Largest decline over 3 years	-36.71%	-19.73%	-16.98%
Max Drawdown (5Y) Largest decline over 5 years	-49.95%	-27.55%	-22.40%
Max Drawdown (10Y) Largest decline over 10 years	—	-46.37%	—
Current Drawdown Current decline from peak	-35.34%	-9.47%	-25.87%
Average Drawdown Average peak-to-trough decline	-21.96%	-6.78%	-15.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.52%	6.61%	+6.91%

Volatility

UFO vs. XAR - Volatility Comparison

The current volatility for Procure Space ETF (UFO) is 7.93%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 8.97%. This indicates that UFO 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

	UFO	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.93%	8.97%	-1.04%
Volatility (6M) Calculated over the trailing 6-month period	32.78%	23.17%	+9.61%
Volatility (1Y) Calculated over the trailing 1-year period	41.75%	28.75%	+13.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.89%	23.84%	+7.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.24%	24.85%	+6.39%

UFO vs. XAR - Expense Ratio Comparison

UFO has a 0.75% expense ratio, which is higher than XAR's 0.35% expense ratio.

Dividends

UFO vs. XAR - Dividend Comparison

UFO's dividend yield for the trailing twelve months is around 0.34%, more than XAR's 0.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UFO Procure Space ETF	0.34%	0.46%	1.98%	1.90%	3.19%	1.00%	1.07%	0.45%	0.00%	0.00%	0.00%	0.00%
XAR SPDR S&P Aerospace & Defense ETF	0.31%	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 UFO and XAR in my portfolio?

UFO and XAR have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UFO or XAR?

XAR has higher volatility (8.97%) compared to UFO (7.93%). In terms of maximum drawdown, UFO dropped -50.33% vs XAR's -46.37%.

Which ETF is better, UFO or XAR?

On 5-year performance, XAR leads with 16.36% vs 9.89% for UFO. On fees, XAR is cheaper at 0.35% per year. On volatility, UFO has been the lower-risk option at 7.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UFO or XAR?

Over the 5-year period, XAR has performed better with a 16.36% return vs 9.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UFO or XAR?

XAR is cheaper with a 0.35% expense ratio, compared with 0.75% for UFO.

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

UFO has the higher dividend yield at 0.34%, compared with 0.31% for XAR.

What is the main difference between UFO and XAR?

UFO is categorized as Global Equities, while XAR is Aerospace & Defense. UFO tracks S-Network Space Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: Procure and State Street. Their fees differ too: 0.75% for UFO and 0.35% for XAR.

Which has better risk-adjusted returns?

UFO currently has the higher Sharpe Ratio (1.16 vs 0.79), 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.