XAD.TO vs. XME

Last updated Jun 13, 2026

XAD.TO (iShares U.S. Aerospace & Defense Index ETF) and XME (SPDR S&P Metals & Mining ETF) are both exchange-traded funds - XAD.TO is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while XME is a Materials fund tracking the S&P Metals & Mining Select Industry Index. Both are passively managed. Over the past year, XAD.TO returned 34.40% vs 90.19% for XME. At a 0.30 correlation, their price movements are largely independent. XAD.TO charges 0.44%/yr vs 0.35%/yr for XME.

Performance

XAD.TO vs. XME - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares U.S. Aerospace & Defense Index ETF (XAD.TO) and SPDR S&P Metals & Mining ETF (XME). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XAD.TO is traded in CAD, while XME is traded in USD. To make them comparable, the XME values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XAD.TO achieves a 11.18% return, which is significantly lower than XME's 18.67% return.

XAD.TO

• 1D: -0.47%
• 1M: 9.47%
• YTD: 11.18%
• 6M: 13.68%
• 1Y: 34.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

XME

• 1D: 1.95%
• 1M: 1.51%
• YTD: 18.67%
• 6M: 19.82%
• 1Y: 90.19%
• 3Y*: 37.25%
• 5Y*: 25.35%
• 10Y*: 20.62%

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

XAD.TO vs. XME - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XAD.TO iShares U.S. Aerospace & Defense Index ETF	11.18%	41.77%	25.00%	13.86%
XME SPDR S&P Metals & Mining ETF	18.67%	75.10%	3.54%	11.16%

Correlation

The correlation between XAD.TO and XME is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (All Time) Calculated using the full available price history since Sep 19, 2023	0.30

Return for Risk

XAD.TO vs. XME — Risk / Return Rank

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

XAD.TO

XAD.TO Risk / Return Rank: 52
XAD.TO Sharpe Ratio Rank: 56
XAD.TO Sortino Ratio Rank: 59
XAD.TO Omega Ratio Rank: 51
XAD.TO Calmar Ratio Rank: 53
XAD.TO Martin Ratio Rank: 41

XME

XME Risk / Return Rank: 75
XME Sharpe Ratio Rank: 86
XME Sortino Ratio Rank: 74
XME Omega Ratio Rank: 73
XME Calmar Ratio Rank: 82
XME Martin Ratio Rank: 61

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.

XAD.TO vs. XME - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense Index ETF (XAD.TO) and SPDR S&P Metals & Mining ETF (XME). 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.

	XAD.TO	XME	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.51	-0.86
Sortino ratio: Return per unit of downside risk	2.42	2.96	-0.54
Omega ratio: Gain probability vs. loss probability	1.28	1.38	-0.10
Calmar ratio: Return relative to maximum drawdown	2.34	3.98	-1.64
Martin ratio: Return relative to average drawdown	5.89	9.78	-3.89

XAD.TO vs. XME - Sharpe Ratio Comparison

The current XAD.TO Sharpe Ratio is 1.64, which is lower than the XME Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of XAD.TO and XME, 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

XAD.TO vs. XME - Drawdown Comparison

The maximum XAD.TO drawdown since its inception was -16.06%, smaller than the maximum XME drawdown of -80.04%. Use the drawdown chart below to compare losses from any high point for XAD.TO and XME.

Drawdown Indicators

	XAD.TO	XME	Difference
Max Drawdown Largest peak-to-trough decline	-16.06%	-80.04%	+63.98%
Max Drawdown (1Y) Largest decline over 1 year	-14.91%	-22.87%	+7.96%
Max Drawdown (3Y) Largest decline over 3 years	—	-29.59%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.27%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-56.77%	—
Current Drawdown Current decline from peak	-4.29%	-8.46%	+4.17%
Average Drawdown Average peak-to-trough decline	-2.90%	-37.89%	+34.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	9.29%	-3.38%

Volatility

XAD.TO vs. XME - Volatility Comparison

The current volatility for iShares U.S. Aerospace & Defense Index ETF (XAD.TO) is 7.54%, while SPDR S&P Metals & Mining ETF (XME) has a volatility of 15.45%. This indicates that XAD.TO experiences smaller price fluctuations and is considered to be less risky than XME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAD.TO	XME	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.54%	15.45%	-7.91%
Volatility (6M) Calculated over the trailing 6-month period	17.69%	28.88%	-11.19%
Volatility (1Y) Calculated over the trailing 1-year period	21.24%	36.35%	-15.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.92%	33.28%	-13.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.92%	33.48%	-13.56%

XAD.TO vs. XME - Expense Ratio Comparison

XAD.TO has a 0.44% expense ratio, which is higher than XME's 0.35% expense ratio.

Dividends

XAD.TO vs. XME - Dividend Comparison

XAD.TO's dividend yield for the trailing twelve months is around 0.32%, which matches XME's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XAD.TO iShares U.S. Aerospace & Defense Index ETF	0.32%	0.35%	0.44%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XME SPDR S&P Metals & Mining ETF	0.32%	0.38%	0.65%	1.00%	1.64%	0.70%	0.99%	2.43%	2.23%	1.15%	1.02%	2.61%

Frequently Asked Questions

Can I hold both XAD.TO and XME in my portfolio?

XAD.TO and XME have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XAD.TO or XME?

On fees, XME is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XAD.TO or XME?

XME is cheaper with a 0.35% expense ratio, compared with 0.44% for XAD.TO.

What is the main difference between XAD.TO and XME?

XAD.TO is categorized as Aerospace & Defense, while XME is Materials. XAD.TO tracks Dow Jones U.S. Select Aerospace & Defense Index, while XME tracks S&P Metals & Mining Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.44% for XAD.TO and 0.35% for XME.