XAR vs. FSDAX

Last updated Jun 23, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and FSDAX (Fidelity Select Defense & Aerospace Portfolio) are both Aerospace & Defense funds. XAR is passively managed, while FSDAX is actively managed. Over the past 10 years, XAR returned 18.54%/yr vs 16.07%/yr for FSDAX. Their correlation of 0.88 suggests significant overlap in exposure. XAR charges 0.35%/yr vs 0.63%/yr for FSDAX.

Performance

XAR vs. FSDAX - Performance Comparison

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

Returns By Period

In the year-to-date period, XAR achieves a 15.26% return, which is significantly higher than FSDAX's 12.70% return. Over the past 10 years, XAR has outperformed FSDAX with an annualized return of 18.54%, while FSDAX has yielded a comparatively lower 16.07% annualized return.

XAR

• 1D: -2.24%
• 1M: 2.49%
• YTD: 15.26%
• 6M: 11.31%
• 1Y: 40.45%
• 3Y*: 33.82%
• 5Y*: 16.54%
• 10Y*: 18.54%

FSDAX

• 1D: -1.16%
• 1M: 7.55%
• YTD: 12.70%
• 6M: 10.25%
• 1Y: 33.42%
• 3Y*: 29.57%
• 5Y*: 18.05%
• 10Y*: 16.07%

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

XAR vs. FSDAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	15.26%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%
FSDAX Fidelity Select Defense & Aerospace Portfolio	12.70%	50.03%	15.83%	16.29%	6.83%	4.91%	-7.87%	33.75%	-6.83%	34.15%

Correlation

The correlation between XAR and FSDAX is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.88

The correlation between XAR and FSDAX has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.

Return for Risk

XAR vs. FSDAX — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 42
XAR Sortino Ratio Rank: 43
XAR Omega Ratio Rank: 37
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 42

FSDAX

FSDAX Risk / Return Rank: 33
FSDAX Sharpe Ratio Rank: 34
FSDAX Sortino Ratio Rank: 35
FSDAX Omega Ratio Rank: 31
FSDAX Calmar Ratio Rank: 36
FSDAX Martin Ratio Rank: 28

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. FSDAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and Fidelity Select Defense & Aerospace Portfolio (FSDAX). 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	FSDAX	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.57	-0.12
Sortino ratio: Return per unit of downside risk	2.13	2.28	-0.15
Omega ratio: Gain probability vs. loss probability	1.24	1.27	-0.03
Calmar ratio: Return relative to maximum drawdown	2.36	2.15	+0.21
Martin ratio: Return relative to average drawdown	6.60	6.14	+0.46

XAR vs. FSDAX - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.45, which is comparable to the FSDAX Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of XAR and FSDAX, 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. FSDAX - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum FSDAX drawdown of -60.59%. Use the drawdown chart below to compare losses from any high point for XAR and FSDAX.

Drawdown Indicators

	XAR	FSDAX	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-60.59%	+14.22%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-16.13%	-1.09%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-16.13%	-3.60%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-22.48%	-9.92%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-47.08%	+0.71%
Current Drawdown Current decline from peak	-5.02%	-2.00%	-3.02%
Average Drawdown Average peak-to-trough decline	-6.78%	-10.44%	+3.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.15%	5.64%	+0.51%

Volatility

XAR vs. FSDAX - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.60% compared to Fidelity Select Defense & Aerospace Portfolio (FSDAX) at 8.33%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than FSDAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	FSDAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.60%	8.33%	+2.27%
Volatility (6M) Calculated over the trailing 6-month period	23.50%	19.02%	+4.48%
Volatility (1Y) Calculated over the trailing 1-year period	28.02%	22.10%	+5.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.69%	20.64%	+3.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.77%	22.45%	+2.32%

XAR vs. FSDAX - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than FSDAX's 0.63% expense ratio.

Dividends

XAR vs. FSDAX - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.34%, less than FSDAX's 2.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSDAX Fidelity Select Defense & Aerospace Portfolio	2.03%	4.48%	7.68%	6.47%	8.87%	8.38%	2.11%	2.62%	11.45%	3.57%	4.87%	6.30%
XAR SPDR S&P Aerospace & Defense ETF	0.34%	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 FSDAX in my portfolio?

XAR and FSDAX have a correlation of 0.90, 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 FSDAX?

XAR has higher volatility (10.60%) compared to FSDAX (8.33%). In terms of maximum drawdown, XAR dropped -46.37% vs FSDAX's -60.59%.

Which has better risk-adjusted returns?

FSDAX currently has the higher Sharpe Ratio (1.57 vs 1.45), 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.