XAR vs. SHLD

Last updated Jun 24, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and SHLD (Global X Defense Tech ETF) are both Aerospace & Defense funds - XAR tracks the S&P Aerospace & Defense Select Industry Index while SHLD tracks the Global X Defense Tech Index. Both are passively managed. Over the past year, XAR returned 37.38% vs 4.03% for SHLD. A 0.73 correlation means they provide meaningful diversification when combined. XAR charges 0.35%/yr vs 0.50%/yr for SHLD.

Performance

XAR vs. SHLD - Performance Comparison

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

Returns By Period

In the year-to-date period, XAR achieves a 14.20% return, which is significantly higher than SHLD's -6.53% return.

XAR

• 1D: -0.92%
• 1M: 1.55%
• YTD: 14.20%
• 6M: 10.14%
• 1Y: 37.38%
• 3Y*: 33.41%
• 5Y*: 16.10%
• 10Y*: 18.43%

SHLD

• 1D: -0.05%
• 1M: -7.05%
• YTD: -6.53%
• 6M: -8.73%
• 1Y: 4.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XAR vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XAR SPDR S&P Aerospace & Defense ETF	14.20%	46.15%	23.32%	16.46%
SHLD Global X Defense Tech ETF	-6.53%	74.16%	35.03%	12.89%

Correlation

The correlation between XAR and SHLD is 0.79, 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	0.79
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.73

The correlation between XAR and SHLD has been stable across timeframes, ranging from 0.73 to 0.79 - a consistent structural relationship.

XAR vs. SHLD - Sectors Allocation Comparison

Sectors	XAR	SHLD
Industrials	99.3%	87.8%
Technology	0.7%	12.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XAR vs. SHLD — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 40
XAR Sharpe Ratio Rank: 39
XAR Sortino Ratio Rank: 41
XAR Omega Ratio Rank: 35
XAR Calmar Ratio Rank: 45
XAR Martin Ratio Rank: 40

SHLD

SHLD Risk / Return Rank: 11
SHLD Sharpe Ratio Rank: 11
SHLD Sortino Ratio Rank: 11
SHLD Omega Ratio Rank: 10
SHLD Calmar Ratio Rank: 10
SHLD Martin Ratio Rank: 11

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	1.34	0.16	+1.18
Sortino ratio: Return per unit of downside risk	2.01	0.41	+1.59
Omega ratio: Gain probability vs. loss probability	1.23	1.05	+0.18
Calmar ratio: Return relative to maximum drawdown	2.18	0.18	+2.00
Martin ratio: Return relative to average drawdown	6.08	0.46	+5.62

XAR vs. SHLD - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.34, which is higher than the SHLD Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of XAR and SHLD, 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. SHLD - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, which is greater than SHLD's maximum drawdown of -22.38%. Use the drawdown chart below to compare losses from any high point for XAR and SHLD.

Drawdown Indicators

	XAR	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-22.38%	-23.99%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-22.38%	+5.16%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	—	—
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	-5.89%	-22.38%	+16.49%
Average Drawdown Average peak-to-trough decline	-6.78%	-3.49%	-3.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.16%	8.69%	-2.53%

Volatility

XAR vs. SHLD - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.65% compared to Global X Defense Tech ETF (SHLD) at 9.04%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.65%	9.04%	+1.61%
Volatility (6M) Calculated over the trailing 6-month period	23.46%	20.19%	+3.27%
Volatility (1Y) Calculated over the trailing 1-year period	27.98%	24.71%	+3.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.69%	21.33%	+2.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.74%	21.33%	+3.41%

XAR vs. SHLD - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

XAR vs. SHLD - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.29%, less than SHLD's 0.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.59%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XAR SPDR S&P Aerospace & Defense ETF	0.29%	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 SHLD in my portfolio?

XAR and SHLD have a correlation of 0.79, 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 SHLD?

XAR has higher volatility (10.65%) compared to SHLD (9.04%). In terms of maximum drawdown, XAR dropped -46.37% vs SHLD's -22.38%.

Which ETF is better, XAR or SHLD?

On 1-year performance, XAR leads with 37.38% vs 4.03% for SHLD. On fees, XAR is cheaper at 0.35% per year. On volatility, SHLD has been the lower-risk option at 9.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or SHLD?

Over the 1-year period, XAR has performed better with a 37.38% return vs 4.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or SHLD?

XAR is cheaper with a 0.35% expense ratio, compared with 0.50% for SHLD.

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

SHLD has the higher dividend yield at 0.59%, compared with 0.29% for XAR.

What is the main difference between XAR and SHLD?

XAR tracks S&P Aerospace & Defense Select Industry Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: State Street and Global X. Their fees differ too: 0.35% for XAR and 0.50% for SHLD.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.34 vs 0.16), 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.