XAR vs. SOXQ

Last updated Jun 12, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and SOXQ (Invesco PHLX Semiconductor ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while SOXQ is a Semiconductors fund tracking the PHLX Semiconductor Sector Index. Both are passively managed. Over the past 5 years, XAR returned 16.94%/yr vs 33.82%/yr for SOXQ. A 0.52 correlation means they provide meaningful diversification when combined. XAR charges 0.35%/yr vs 0.19%/yr for SOXQ.

Performance

XAR vs. SOXQ - Performance Comparison

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

Returns By Period

In the year-to-date period, XAR achieves a 17.94% return, which is significantly lower than SOXQ's 86.16% return.

XAR

• 1D: 6.62%
• 1M: 5.95%
• YTD: 17.94%
• 6M: 18.96%
• 1Y: 43.77%
• 3Y*: 34.21%
• 5Y*: 16.94%
• 10Y*: 18.55%

SOXQ

• 1D: 7.93%
• 1M: 12.42%
• YTD: 86.16%
• 6M: 77.88%
• 1Y: 153.11%
• 3Y*: 54.47%
• 5Y*: 33.82%
• 10Y*: —

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

XAR vs. SOXQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XAR SPDR S&P Aerospace & Defense ETF	17.94%	46.15%	23.32%	23.79%	-5.02%	-11.95%
SOXQ Invesco PHLX Semiconductor ETF	86.16%	43.11%	20.16%	66.74%	-35.59%	25.19%

Correlation

The correlation between XAR and SOXQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 11, 2021	0.52

The correlation between XAR and SOXQ has been stable across timeframes, ranging from 0.46 to 0.52 - a consistent structural relationship.

XAR vs. SOXQ - Sectors Allocation Comparison

Sectors	XAR	SOXQ
Industrials	99.1%	-
Technology	0.8%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.0%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XAR vs. SOXQ — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 56
XAR Sharpe Ratio Rank: 57
XAR Sortino Ratio Rank: 58
XAR Omega Ratio Rank: 50
XAR Calmar Ratio Rank: 62
XAR Martin Ratio Rank: 51

SOXQ

SOXQ Risk / Return Rank: 96
SOXQ Sharpe Ratio Rank: 97
SOXQ Sortino Ratio Rank: 94
SOXQ Omega Ratio Rank: 94
SOXQ Calmar Ratio Rank: 97
SOXQ Martin Ratio Rank: 97

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. SOXQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and Invesco PHLX Semiconductor ETF (SOXQ). 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	SOXQ	Difference
Sharpe ratio: Return per unit of total volatility	1.58	4.19	-2.61
Sortino ratio: Return per unit of downside risk	2.29	4.20	-1.91
Omega ratio: Gain probability vs. loss probability	1.26	1.59	-0.33
Calmar ratio: Return relative to maximum drawdown	2.55	9.88	-7.33
Martin ratio: Return relative to average drawdown	7.17	35.94	-28.77

XAR vs. SOXQ - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.58, which is lower than the SOXQ Sharpe Ratio of 4.19. The chart below compares the historical Sharpe Ratios of XAR and SOXQ, 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. SOXQ - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, roughly equal to the maximum SOXQ drawdown of -46.01%. Use the drawdown chart below to compare losses from any high point for XAR and SOXQ.

Drawdown Indicators

	XAR	SOXQ	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-46.01%	-0.36%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-15.59%	-1.63%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-39.36%	+19.63%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-46.01%	+13.61%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	—	—
Current Drawdown Current decline from peak	-2.81%	-5.37%	+2.56%
Average Drawdown Average peak-to-trough decline	-6.78%	-12.92%	+6.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.12%	4.28%	+1.84%

Volatility

XAR vs. SOXQ - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 11.32%, while Invesco PHLX Semiconductor ETF (SOXQ) has a volatility of 18.87%. This indicates that XAR experiences smaller price fluctuations and is considered to be less risky than SOXQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	SOXQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.32%	18.87%	-7.55%
Volatility (6M) Calculated over the trailing 6-month period	23.52%	30.66%	-7.14%
Volatility (1Y) Calculated over the trailing 1-year period	27.80%	36.78%	-8.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.66%	36.90%	-13.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.74%	36.88%	-12.14%

XAR vs. SOXQ - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is higher than SOXQ's 0.19% expense ratio.

Dividends

XAR vs. SOXQ - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, more than SOXQ's 0.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SOXQ Invesco PHLX Semiconductor ETF	0.27%	0.50%	0.68%	0.87%	1.36%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SOXQ in my portfolio?

XAR and SOXQ have a correlation of 0.46, 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 SOXQ?

SOXQ has higher volatility (18.87%) compared to XAR (11.32%). In terms of maximum drawdown, XAR dropped -46.37% vs SOXQ's -46.01%.

Which ETF is better, XAR or SOXQ?

On 5-year performance, SOXQ leads with 33.82% vs 16.94% for XAR. On fees, SOXQ is cheaper at 0.19% per year. On volatility, XAR has been the lower-risk option at 11.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or SOXQ?

Over the 5-year period, SOXQ has performed better with a 33.82% return vs 16.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or SOXQ?

SOXQ is cheaper with a 0.19% expense ratio, compared with 0.35% for XAR.

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

XAR has the higher dividend yield at 0.31%, compared with 0.27% for SOXQ.

What is the main difference between XAR and SOXQ?

XAR is categorized as Aerospace & Defense, while SOXQ is Semiconductors. XAR tracks S&P Aerospace & Defense Select Industry Index, while SOXQ tracks PHLX Semiconductor Sector Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.35% for XAR and 0.19% for SOXQ.

Which has better risk-adjusted returns?

SOXQ currently has the higher Sharpe Ratio (4.19 vs 1.58), 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.