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XAR vs. GOVT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XAR vs. GOVT

Last updated Jun 7, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, XAR returned 17.78%/yr vs 0.86%/yr for GOVT. At a correlation of -0.13, they often move in opposite directions. XAR charges 0.35%/yr vs 0.05%/yr for GOVT.

Performance

XAR vs. GOVT - Performance Comparison

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

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Returns By Period

In the year-to-date period, XAR achieves a 13.04% return, which is significantly higher than GOVT's -0.33% return. Over the past 10 years, XAR has outperformed GOVT with an annualized return of 17.78%, while GOVT has yielded a comparatively lower 0.86% annualized return.

XAR

1D
-2.80%
1M
2.70%
YTD
13.04%
6M
18.20%
1Y
37.96%
3Y*
33.64%
5Y*
16.19%
10Y*
17.78%

GOVT

1D
-0.35%
1M
-0.59%
YTD
-0.33%
6M
-0.22%
1Y
3.74%
3Y*
2.73%
5Y*
-0.50%
10Y*
0.86%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XAR vs. GOVT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XAR
SPDR S&P Aerospace & Defense ETF		13.04%46.15%23.32%23.79%-5.02%2.31%6.18%39.33%-4.58%33.00%
GOVT
iShares U.S. Treasury Bond ETF		-0.33%3.77%2.95%4.17%-13.39%-1.11%7.28%7.36%0.26%2.19%

Correlation

The correlation between XAR and GOVT is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.18

Correlation (3Y)
Calculated over the trailing 3-year period

0.12

Correlation (5Y)
Calculated over the trailing 5-year period

0.05

Correlation (10Y)
Calculated over the trailing 10-year period

-0.09

Correlation (All Time)
Calculated using the full available price history since Feb 27, 2012

-0.13

The correlation between XAR and GOVT shifts across timeframes, from -0.13 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

SPDR S&P Aerospace & Defense ETF

iShares U.S. Treasury Bond ETF

Often compared with XAR:
XAR vs. ITAXAR vs. PPAXAR vs. SHLDXAR vs. VOOXAR vs. UFOXAR vs. FSDAXXAR vs. DFEN
Often compared with GOVT:
GOVT vs. VGITGOVT vs. BNDGOVT vs. TLTGOVT vs. IEFGOVT vs. SHVGOVT vs. VTGGOVT vs. GOVZ

Return for Risk

XAR vs. GOVT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XAR
XAR Risk / Return Rank: 4444
Overall Rank
XAR Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
XAR Sortino Ratio Rank: 4545
Sortino Ratio Rank
XAR Omega Ratio Rank: 3939
Omega Ratio Rank
XAR Calmar Ratio Rank: 4949
Calmar Ratio Rank
XAR Martin Ratio Rank: 4343
Martin Ratio Rank
GOVT
GOVT Risk / Return Rank: 2525
Overall Rank
GOVT Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
GOVT Sortino Ratio Rank: 2525
Sortino Ratio Rank
GOVT Omega Ratio Rank: 2323
Omega Ratio Rank
GOVT Calmar Ratio Rank: 2424
Calmar Ratio Rank
GOVT Martin Ratio Rank: 2525
Martin Ratio Rank
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. GOVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and iShares U.S. Treasury Bond ETF (GOVT). 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.

XARGOVTDifference
Sharpe ratioReturn per unit of total volatility
1.51
0.89

+0.62

Sortino ratioReturn per unit of downside risk
2.16
1.33

+0.83

Omega ratioGain probability vs. loss probability

1.25

1.15

+0.10

Calmar ratioReturn relative to maximum drawdown

2.37

1.12

+1.25

Martin ratioReturn relative to average drawdown

6.72

3.25

+3.46

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XAR vs. GOVT - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.51, which is higher than the GOVT Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of XAR and GOVT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

XARGOVTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.51

0.89

+0.62

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.69

-0.08

+0.78

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.72

0.16

+0.56

Sharpe Ratio (All Time)

Calculated using the full available price history

0.84

0.26

+0.59

Drawdowns

XAR vs. GOVT - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for XAR and GOVT.

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Drawdown Indicators

XARGOVTDifference

Max Drawdown

Largest peak-to-trough decline

-46.37%

-19.07%

-27.30%

Max Drawdown (1Y)

Largest decline over 1 year

-17.22%

-2.85%

-14.37%

Max Drawdown (3Y)

Largest decline over 3 years

-19.73%

-5.43%

-14.30%

Max Drawdown (5Y)

Largest decline over 5 years

-32.40%

-16.60%

-15.80%

Max Drawdown (10Y)

Largest decline over 10 years

-46.37%

-19.07%

-27.30%

Current Drawdown

Current decline from peak

-6.85%

-7.38%

+0.53%

Average Drawdown

Average peak-to-trough decline

-6.78%

-5.25%

-1.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

6.07%

0.98%

+5.09%

Volatility

XAR vs. GOVT - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 9.26% compared to iShares U.S. Treasury Bond ETF (GOVT) at 1.06%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XARGOVTDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.26%

1.06%

+8.20%

Volatility (6M)

Calculated over the trailing 6-month period

22.69%

2.54%

+20.15%

Volatility (1Y)

Calculated over the trailing 1-year period

27.06%

3.60%

+23.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

23.46%

6.04%

+17.42%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

24.64%

5.22%

+19.42%

XAR vs. GOVT - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is higher than GOVT's 0.05% expense ratio.

Dividends

XAR vs. GOVT - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.32%, less than GOVT's 3.59% yield.

PositionTTM20252024202320222021202020192018201720162015
GOVT
iShares U.S. Treasury Bond ETF		3.59%3.49%3.14%2.65%1.77%0.96%2.17%1.98%1.97%1.57%1.40%1.25%
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

XAR and GOVT have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XAR has higher volatility (9.26%) compared to GOVT (1.06%). In terms of maximum drawdown, XAR dropped -46.37% vs GOVT's -19.07%.

On 10-year performance, XAR leads with 17.78% vs 0.86% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XAR has performed better with a 17.78% return vs 0.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

GOVT is cheaper with a 0.05% expense ratio, compared with 0.35% for XAR.

GOVT has the higher dividend yield at 3.59%, compared with 0.32% for XAR.

XAR is categorized as Aerospace & Defense, while GOVT is Government Bonds. XAR tracks S&P Aerospace & Defense Select Industry Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XAR and 0.05% for GOVT.

XAR currently has the higher Sharpe Ratio (1.51 vs 0.89), 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.

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