XAR vs. NVDY

Last updated Jun 25, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and NVDY (YieldMax NVDA Option Income Strategy ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while NVDY is a Derivative Income fund actively managed by YieldMax. XAR is passively managed, while NVDY is actively managed. Over the past 3 years, XAR returned 32.93%/yr vs 50.35%/yr for NVDY. At a 0.33 correlation, their price movements are largely independent. XAR charges 0.35%/yr vs 0.99%/yr for NVDY.

Performance

XAR vs. NVDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) and YieldMax NVDA Option Income Strategy ETF (NVDY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XAR achieves a 12.99% return, which is significantly higher than NVDY's 6.53% return.

XAR

• 1D: -1.06%
• 1M: 0.48%
• YTD: 12.99%
• 6M: 8.80%
• 1Y: 36.07%
• 3Y*: 32.93%
• 5Y*: 15.41%
• 10Y*: 18.31%

NVDY

• 1D: -0.48%
• 1M: -5.66%
• YTD: 6.53%
• 6M: 5.92%
• 1Y: 31.11%
• 3Y*: 50.35%
• 5Y*: —
• 10Y*: —

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

XAR vs. NVDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XAR SPDR S&P Aerospace & Defense ETF	12.99%	46.15%	23.32%	19.67%
NVDY YieldMax NVDA Option Income Strategy ETF	6.53%	27.38%	114.23%	41.31%

Correlation

The correlation between XAR and NVDY is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (All Time) Calculated using the full available price history since May 11, 2023	0.33

Return for Risk

XAR vs. NVDY — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 41
XAR Sharpe Ratio Rank: 40
XAR Sortino Ratio Rank: 41
XAR Omega Ratio Rank: 35
XAR Calmar Ratio Rank: 47
XAR Martin Ratio Rank: 40

NVDY

NVDY Risk / Return Rank: 38
NVDY Sharpe Ratio Rank: 33
NVDY Sortino Ratio Rank: 32
NVDY Omega Ratio Rank: 31
NVDY Calmar Ratio Rank: 55
NVDY Martin Ratio Rank: 38

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. NVDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and YieldMax NVDA Option Income Strategy ETF (NVDY). 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	NVDY	Difference
Sharpe ratio: Return per unit of total volatility	1.29	1.10	+0.19
Sortino ratio: Return per unit of downside risk	1.95	1.59	+0.36
Omega ratio: Gain probability vs. loss probability	1.22	1.20	+0.02
Calmar ratio: Return relative to maximum drawdown	2.10	2.44	-0.33
Martin ratio: Return relative to average drawdown	5.86	5.50	+0.36

XAR vs. NVDY - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.29, which is comparable to the NVDY Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of XAR and NVDY, 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. NVDY - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, which is greater than NVDY's maximum drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for XAR and NVDY.

Drawdown Indicators

	XAR	NVDY	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-34.08%	-12.29%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-12.81%	-4.41%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-34.08%	+14.35%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	—	—
Current Drawdown Current decline from peak	-6.88%	-12.05%	+5.17%
Average Drawdown Average peak-to-trough decline	-6.78%	-6.20%	-0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.17%	5.67%	+0.50%

Volatility

XAR vs. NVDY - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.58% compared to YieldMax NVDA Option Income Strategy ETF (NVDY) at 10.03%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than NVDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	NVDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.58%	10.03%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	23.25%	21.44%	+1.81%
Volatility (1Y) Calculated over the trailing 1-year period	27.98%	28.33%	-0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.69%	38.17%	-14.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.74%	38.17%	-13.43%

XAR vs. NVDY - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than NVDY's 0.99% expense ratio.

Dividends

XAR vs. NVDY - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.30%, less than NVDY's 64.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NVDY YieldMax NVDA Option Income Strategy ETF	64.61%	83.10%	83.65%	22.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XAR SPDR S&P Aerospace & Defense ETF	0.30%	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 NVDY in my portfolio?

XAR and NVDY have a correlation of 0.39, 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 NVDY?

XAR has higher volatility (10.58%) compared to NVDY (10.03%). In terms of maximum drawdown, XAR dropped -46.37% vs NVDY's -34.08%.

Which ETF is better, XAR or NVDY?

On 3-year performance, NVDY leads with 50.35% vs 32.93% for XAR. On fees, XAR is cheaper at 0.35% per year. On volatility, NVDY has been the lower-risk option at 10.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or NVDY?

Over the 3-year period, NVDY has performed better with a 50.35% return vs 32.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or NVDY?

XAR is cheaper with a 0.35% expense ratio, compared with 0.99% for NVDY.

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

NVDY has the higher dividend yield at 64.61%, compared with 0.30% for XAR.

What is the main difference between XAR and NVDY?

XAR is categorized as Aerospace & Defense, while NVDY is Derivative Income. They also come from different issuers: State Street and YieldMax. Their fees differ too: 0.35% for XAR and 0.99% for NVDY.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.29 vs 1.10), 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.