XAR vs. KMLM
XAR (SPDR S&P Aerospace & Defense ETF) and KMLM (KFA Mount Lucas Index Strategy ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while KMLM is a Systematic Trend fund tracking the KFA MLM Index. Both are passively managed. Over the past 5 years, XAR returned 16.54%/yr vs 4.70%/yr for KMLM. At a correlation of -0.06, they often move in opposite directions. XAR charges 0.35%/yr vs 0.90%/yr for KMLM.
Performance
XAR vs. KMLM - Performance Comparison
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Returns By Period
In the year-to-date period, XAR achieves a 15.26% return, which is significantly higher than KMLM's 7.82% 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%
KMLM
- 1D
- 0.58%
- 1M
- -4.23%
- YTD
- 7.82%
- 6M
- 7.66%
- 1Y
- 15.91%
- 3Y*
- -0.44%
- 5Y*
- 4.70%
- 10Y*
- —
XAR vs. KMLM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
XAR SPDR S&P Aerospace & Defense ETF | 15.26% | 46.15% | 23.32% | 23.79% | -5.02% | 2.31% | 5.92% |
KMLM KFA Mount Lucas Index Strategy ETF | 7.82% | -2.98% | -1.69% | -5.66% | 30.61% | 7.04% | 5.74% |
Correlation
The correlation between XAR and KMLM is 0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.01 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.09 |
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020 | -0.06 |
The correlation between XAR and KMLM shifts across timeframes, from -0.09 (5 years) to 0.01 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XAR vs. KMLM — Risk / Return Rank
XAR
KMLM
XAR vs. KMLM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and KFA Mount Lucas Index Strategy ETF (KMLM). 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 | KMLM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.19 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.25 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.36 | 1.99 | +0.37 |
| Martin ratioReturn relative to average drawdown | 6.60 | 6.87 | -0.27 |
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Drawdowns
XAR vs. KMLM - Drawdown Comparison
The maximum XAR drawdown since its inception was -46.37%, which is greater than KMLM's maximum drawdown of -27.47%. Use the drawdown chart below to compare losses from any high point for XAR and KMLM.
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Drawdown Indicators
| XAR | KMLM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.37% | -27.47% | -18.90% |
Max Drawdown (1Y)Largest decline over 1 year | -17.22% | -8.04% | -9.18% |
Max Drawdown (3Y)Largest decline over 3 years | -19.73% | -22.28% | +2.55% |
Max Drawdown (5Y)Largest decline over 5 years | -32.40% | -27.47% | -4.93% |
Max Drawdown (10Y)Largest decline over 10 years | -46.37% | — | — |
Current DrawdownCurrent decline from peak | -5.02% | -15.93% | +10.91% |
Average DrawdownAverage peak-to-trough decline | -6.78% | -12.75% | +5.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.15% | 2.32% | +3.83% |
Volatility
XAR vs. KMLM - Volatility Comparison
SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.60% compared to KFA Mount Lucas Index Strategy ETF (KMLM) at 2.95%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than KMLM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XAR | KMLM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.60% | 2.95% | +7.65% |
Volatility (6M)Calculated over the trailing 6-month period | 23.50% | 9.80% | +13.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.02% | 11.38% | +16.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.69% | 14.58% | +9.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.77% | 14.69% | +10.08% |
XAR vs. KMLM - Expense Ratio Comparison
XAR has a 0.35% expense ratio, which is lower than KMLM's 0.90% expense ratio.
Dividends
XAR vs. KMLM - Dividend Comparison
XAR's dividend yield for the trailing twelve months is around 0.34%, less than KMLM's 4.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KMLM KFA Mount Lucas Index Strategy ETF | 4.66% | 5.02% | 0.82% | 0.00% | 13.22% | 6.94% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
XAR and KMLM have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XAR has higher volatility (10.60%) compared to KMLM (2.95%). In terms of maximum drawdown, XAR dropped -46.37% vs KMLM's -27.47%.
On 5-year performance, XAR leads with 16.54% vs 4.70% for KMLM. On fees, XAR is cheaper at 0.35% per year. On volatility, KMLM has been the lower-risk option at 2.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XAR has performed better with a 16.54% return vs 4.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XAR is cheaper with a 0.35% expense ratio, compared with 0.90% for KMLM.
KMLM has the higher dividend yield at 4.66%, compared with 0.34% for XAR.
XAR is categorized as Aerospace & Defense, while KMLM is Systematic Trend. XAR tracks S&P Aerospace & Defense Select Industry Index, while KMLM tracks KFA MLM Index. They also come from different issuers: State Street and KraneShares. Their fees differ too: 0.35% for XAR and 0.90% for KMLM.
XAR currently has the higher Sharpe Ratio (1.45 vs 1.41), 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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