XAR vs. ARTY

Last updated Jun 12, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and ARTY (iShares Future AI & Tech ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while ARTY is a Technology Equities fund tracking the Morningstar Global Artificial Intelligence Select Index (Net). Both are passively managed. Over the past 5 years, XAR returned 16.94%/yr vs 11.73%/yr for ARTY. A 0.62 correlation means they provide meaningful diversification when combined. XAR charges 0.35%/yr vs 0.47%/yr for ARTY.

Performance

XAR vs. ARTY - Performance Comparison

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

Returns By Period

In the year-to-date period, XAR achieves a 17.94% return, which is significantly lower than ARTY's 50.46% return.

XAR

• 1D: 6.62%
• 1M: 5.95%
• YTD: 17.94%
• 6M: 18.96%
• 1Y: 43.77%
• 3Y*: 34.21%
• 5Y*: 16.94%
• 10Y*: 18.55%

ARTY

• 1D: 5.70%
• 1M: 8.32%
• YTD: 50.46%
• 6M: 45.65%
• 1Y: 88.63%
• 3Y*: 31.08%
• 5Y*: 11.73%
• 10Y*: —

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

XAR vs. ARTY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
XAR SPDR S&P Aerospace & Defense ETF	17.94%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-7.61%
ARTY iShares Future AI & Tech ETF	50.46%	29.97%	8.02%	36.37%	-37.89%	6.32%	48.85%	34.47%	-13.76%

Correlation

The correlation between XAR and ARTY is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Jun 28, 2018	0.62

The correlation between XAR and ARTY shifts across timeframes, from 0.52 (1 year) to 0.63 (5 years), reflecting how their relationship changes across market environments.

XAR vs. ARTY - Sectors Allocation Comparison

Sectors	XAR	ARTY
Industrials	99.1%	5.3%
Technology	0.8%	87.7%
Basic Materials	-	-
Communication Services	-	3.5%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	0.6%
Real Estate	-	1.2%
Utilities	-	1.7%

Return for Risk

XAR vs. ARTY — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 56
XAR Sharpe Ratio Rank: 57
XAR Sortino Ratio Rank: 58
XAR Omega Ratio Rank: 50
XAR Calmar Ratio Rank: 62
XAR Martin Ratio Rank: 51

ARTY

ARTY Risk / Return Rank: 87
ARTY Sharpe Ratio Rank: 92
ARTY Sortino Ratio Rank: 83
ARTY Omega Ratio Rank: 84
ARTY Calmar Ratio Rank: 90
ARTY Martin Ratio Rank: 87

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.

XAR vs. ARTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and iShares Future AI & Tech ETF (ARTY). 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.

	XAR	ARTY	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.71	-1.12
Sortino ratio: Return per unit of downside risk	2.29	3.07	-0.78
Omega ratio: Gain probability vs. loss probability	1.26	1.42	-0.16
Calmar ratio: Return relative to maximum drawdown	2.55	4.74	-2.18
Martin ratio: Return relative to average drawdown	7.17	15.74	-8.57

XAR vs. ARTY - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.58, which is lower than the ARTY Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of XAR and ARTY, 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

XAR vs. ARTY - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum ARTY drawdown of -54.50%. Use the drawdown chart below to compare losses from any high point for XAR and ARTY.

Drawdown Indicators

	XAR	ARTY	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-54.50%	+8.13%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-18.81%	+1.59%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-32.44%	+12.71%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-50.53%	+18.13%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	—	—
Current Drawdown Current decline from peak	-2.81%	-10.23%	+7.42%
Average Drawdown Average peak-to-trough decline	-6.78%	-19.81%	+13.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.12%	5.65%	+0.47%

Volatility

XAR vs. ARTY - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 11.32%, while iShares Future AI & Tech ETF (ARTY) has a volatility of 17.81%. This indicates that XAR experiences smaller price fluctuations and is considered to be less risky than ARTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	ARTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.32%	17.81%	-6.49%
Volatility (6M) Calculated over the trailing 6-month period	23.52%	28.84%	-5.32%
Volatility (1Y) Calculated over the trailing 1-year period	27.80%	32.93%	-5.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.66%	29.23%	-5.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.74%	28.12%	-3.38%

XAR vs. ARTY - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than ARTY's 0.47% expense ratio.

Dividends

XAR vs. ARTY - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, while ARTY has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARTY iShares Future AI & Tech ETF	0.00%	0.00%	0.50%	0.88%	0.75%	2.41%	0.53%	0.69%	0.34%	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 XAR and ARTY in my portfolio?

XAR and ARTY have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XAR or ARTY?

ARTY has higher volatility (17.81%) compared to XAR (11.32%). In terms of maximum drawdown, XAR dropped -46.37% vs ARTY's -54.50%.

Which ETF is better, XAR or ARTY?

On 5-year performance, XAR leads with 16.94% vs 11.73% for ARTY. On fees, XAR is cheaper at 0.35% per year. On volatility, XAR has been the lower-risk option at 11.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or ARTY?

Over the 5-year period, XAR has performed better with a 16.94% return vs 11.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or ARTY?

XAR is cheaper with a 0.35% expense ratio, compared with 0.47% for ARTY.

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

XAR has the higher dividend yield at 0.31%, compared with 0.00% for ARTY.

What is the main difference between XAR and ARTY?

XAR is categorized as Aerospace & Defense, while ARTY is Technology Equities. XAR tracks S&P Aerospace & Defense Select Industry Index, while ARTY tracks Morningstar Global Artificial Intelligence Select Index (Net). They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XAR and 0.47% for ARTY.

Which has better risk-adjusted returns?

ARTY currently has the higher Sharpe Ratio (2.71 vs 1.58), 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.