XAR vs. LMT

Last updated Apr 2, 2026

Compare and contrast key facts about SPDR S&P Aerospace & Defense ETF (XAR) and Lockheed Martin Corporation (LMT).

XAR is a passively managed fund by State Street that tracks the performance of the S&P Aerospace & Defense Select Industry. It was launched on Sep 28, 2011.

Performance

XAR vs. LMT - Performance Comparison

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

XAR vs. LMT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	7.80%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%
LMT Lockheed Martin Corporation	28.37%	2.47%	10.02%	-4.31%	40.48%	3.15%	-6.49%	52.55%	-16.35%	31.77%

Returns By Period

In the year-to-date period, XAR achieves a 7.80% return, which is significantly lower than LMT's 28.37% return. Over the past 10 years, XAR has outperformed LMT with an annualized return of 18.34%, while LMT has yielded a comparatively lower 13.69% annualized return.

XAR

• 1D: 2.35%
• 1M: -10.28%
• YTD: 7.80%
• 6M: 10.02%
• 1Y: 61.14%
• 3Y*: 31.26%
• 5Y*: 16.10%
• 10Y*: 18.34%

LMT

• 1D: 2.19%
• 1M: -8.73%
• YTD: 28.37%
• 6M: 25.37%
• 1Y: 41.43%
• 3Y*: 12.30%
• 5Y*: 13.76%
• 10Y*: 13.69%

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

Return for Risk

XAR vs. LMT — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 91
XAR Sharpe Ratio Rank: 92
XAR Sortino Ratio Rank: 93
XAR Omega Ratio Rank: 87
XAR Calmar Ratio Rank: 93
XAR Martin Ratio Rank: 91

LMT

LMT Risk / Return Rank: 81
LMT Sharpe Ratio Rank: 84
LMT Sortino Ratio Rank: 77
LMT Omega Ratio Rank: 80
LMT Calmar Ratio Rank: 83
LMT Martin Ratio Rank: 82

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. LMT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and Lockheed Martin Corporation (LMT). 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.

	XAR	LMT	Difference
Sharpe ratio Return per unit of total volatility	2.17	1.55	+0.62
Sortino ratio Return per unit of downside risk	2.84	1.99	+0.85
Omega ratio Gain probability vs. loss probability	1.36	1.29	+0.07
Calmar ratio Return relative to maximum drawdown	3.62	2.70	+0.92
Martin ratio Return relative to average drawdown	12.65	6.94	+5.71
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. LMT - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 2.17, which is higher than the LMT Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of XAR and LMT, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	XAR	LMT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	1.55	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.61	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.76	0.58	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.39	+0.45

Correlation

The correlation between XAR and LMT is 0.55, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

XAR vs. LMT - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.34%, less than LMT's 2.19% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
LMT Lockheed Martin Corporation	2.19%	2.76%	2.62%	2.68%	2.34%	2.98%	2.76%	2.31%	3.13%	2.32%	2.71%	2.83%

Drawdowns

XAR vs. LMT - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum LMT drawdown of -79.29%. Use the drawdown chart below to compare losses from any high point for XAR and LMT.

Drawdown Indicators

	XAR	LMT	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-79.29%	+32.92%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-15.56%	-1.66%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-31.79%	-0.61%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-36.67%	-9.70%
Current Drawdown Current decline from peak	-11.16%	-8.73%	-2.43%
Average Drawdown Average peak-to-trough decline	-6.76%	-26.86%	+20.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	6.06%	-1.13%

Volatility

XAR vs. LMT - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.57% compared to Lockheed Martin Corporation (LMT) at 6.88%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than LMT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	LMT	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.57%	6.88%	+3.69%
Volatility (6M) Calculated over the trailing 6-month period	21.39%	18.69%	+2.70%
Volatility (1Y) Calculated over the trailing 1-year period	28.34%	26.80%	+1.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.93%	22.59%	+0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.35%	23.53%	+0.82%