XAR vs. GRID

Last updated Jul 21, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while GRID is a Alternative Energy Equities fund tracking the Nasdaq Clean Edge Smart Grid Infrastructure Index. Both are passively managed. Over the past 10 years, XAR returned 17.12%/yr vs 18.45%/yr for GRID. A 0.58 correlation means they provide meaningful diversification when combined. XAR charges 0.35%/yr vs 0.70%/yr for GRID.

Performance

XAR vs. GRID - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) and First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XAR achieves a 7.56% return, which is significantly lower than GRID's 16.26% return. Over the past 10 years, XAR has underperformed GRID with an annualized return of 17.12%, while GRID has yielded a comparatively higher 18.45% annualized return.

XAR

• 1D: 0.29%
• 1M: -8.77%
• 6M: -11.36%
• YTD: 7.56%
• 1Y: 17.02%
• 3Y*: 29.13%
• 5Y*: 15.72%
• 10Y*: 17.12%
• ALL TIME*: 18.23%

GRID

• 1D: -0.43%
• 1M: -8.67%
• 6M: 11.72%
• YTD: 16.26%
• 1Y: 25.15%
• 3Y*: 19.51%
• 5Y*: 14.88%
• 10Y*: 18.45%
• ALL TIME*: 12.44%

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

XAR vs. GRID - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	7.56%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	16.26%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%

Correlation

The correlation between XAR and GRID is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.58

The correlation between XAR and GRID has been stable across timeframes, ranging from 0.58 to 0.67 - a consistent structural relationship.

XAR vs. GRID - Sectors Allocation Comparison

Sectors	XAR	GRID
Industrials	98.4%	67.4%
Technology	1.6%	11.6%
Basic Materials	-	0.0%
Communication Services	-	-
Consumer Cyclical	-	3.6%
Consumer Defensive	-	-
Energy	-	1.6%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	17.3%

Return for Risk

XAR vs. GRID — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 25
XAR Sharpe Ratio Rank: 23
XAR Sortino Ratio Rank: 24
XAR Omega Ratio Rank: 22
XAR Calmar Ratio Rank: 27
XAR Martin Ratio Rank: 27

GRID

GRID Risk / Return Rank: 46
GRID Sharpe Ratio Rank: 42
GRID Sortino Ratio Rank: 40
GRID Omega Ratio Rank: 41
GRID Calmar Ratio Rank: 57
GRID Martin Ratio Rank: 51

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. GRID - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). 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	GRID	Difference
Sharpe ratio: Return per unit of total volatility	0.61	1.15	-0.54
Sortino ratio: Return per unit of downside risk	1.06	1.62	-0.55
Omega ratio: Gain probability vs. loss probability	1.12	1.21	-0.09
Calmar ratio: Return relative to maximum drawdown	0.99	2.15	-1.16
Martin ratio: Return relative to average drawdown	2.66	6.50	-3.84

XAR vs. GRID - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 0.61, which is lower than the GRID Sharpe Ratio of 1.15. The chart below compares the historical Sharpe Ratios of XAR and GRID, 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. GRID - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, which is greater than GRID's maximum drawdown of -40.56%. Use the drawdown chart below to compare losses from any high point for XAR and GRID.

Drawdown Indicators

	XAR	GRID	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-40.56%	-5.81%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-11.73%	-5.49%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-20.62%	+0.89%
Max Drawdown (5Y) Largest decline over 5 years	-28.29%	-29.64%	+1.35%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-40.56%	-5.81%
Current Drawdown Current decline from peak	-11.36%	-11.01%	-0.35%
Average Drawdown Average peak-to-trough decline	-6.78%	-8.41%	+1.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.45%	3.88%	+2.57%

Volatility

XAR vs. GRID - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 6.93%, while First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) has a volatility of 8.76%. This indicates that XAR experiences smaller price fluctuations and is considered to be less risky than GRID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	GRID	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.93%	8.76%	-1.83%
Volatility (6M) Calculated over the trailing 6-month period	22.61%	19.36%	+3.25%
Volatility (1Y) Calculated over the trailing 1-year period	28.29%	22.09%	+6.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.70%	21.51%	+2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.78%	22.72%	+2.06%

XAR vs. GRID - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than GRID's 0.70% expense ratio.

Dividends

XAR vs. GRID - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, less than GRID's 0.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	0.81%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
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 GRID in my portfolio?

XAR and GRID have a correlation of 0.58, 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 GRID?

GRID has higher volatility (8.76%) compared to XAR (6.93%). In terms of maximum drawdown, XAR dropped -46.37% vs GRID's -40.56%.

Which ETF is better, XAR or GRID?

On 10-year performance, GRID leads with 18.45% vs 17.12% for XAR. On fees, XAR is cheaper at 0.35% per year. On volatility, XAR has been the lower-risk option at 6.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or GRID?

Over the 10-year period, GRID has performed better with a 18.45% return vs 17.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or GRID?

XAR is cheaper with a 0.35% expense ratio, compared with 0.70% for GRID.

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

GRID has the higher dividend yield at 0.81%, compared with 0.31% for XAR.

What is the main difference between XAR and GRID?

XAR is categorized as Aerospace & Defense, while GRID is Alternative Energy Equities. XAR tracks S&P Aerospace & Defense Select Industry Index, while GRID tracks Nasdaq Clean Edge Smart Grid Infrastructure Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.35% for XAR and 0.70% for GRID.

Which has better risk-adjusted returns?

GRID currently has the higher Sharpe Ratio (1.15 vs 0.61), 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.