XAR vs. SPOT

Last updated Jul 21, 2026

XAR (SPDR S&P Aerospace & Defense ETF) is Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while SPOT (Spotify Technology S.A.) is a stock. Over the past 5 years, XAR returned 15.72%/yr vs 14.71%/yr for SPOT. At a 0.30 correlation, their price movements are largely independent.

Performance

XAR vs. SPOT - Performance Comparison

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

Returns By Period

In the year-to-date period, XAR achieves a 7.56% return, which is significantly higher than SPOT's -15.22% return.

XAR

• 1D: 0.29%
• 1M: -8.77%
• 6M: -11.36%
• YTD: 7.56%
• 1Y: 17.02%
• 3Y*: 29.13%
• 5Y*: 15.72%
• 10Y*: 17.12%
• ALL TIME*: 18.23%

SPOT

• 1D: 2.97%
• 1M: 5.18%
• 6M: -2.41%
• YTD: -15.22%
• 1Y: -29.21%
• 3Y*: 42.06%
• 5Y*: 14.71%
• 10Y*: —
• ALL TIME*: 14.01%

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

XAR vs. SPOT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
XAR SPDR S&P Aerospace & Defense ETF	7.56%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-6.98%
SPOT Spotify Technology S.A.	-15.22%	29.80%	138.08%	138.01%	-66.27%	-25.62%	110.40%	31.76%	-31.59%

Correlation

The correlation between XAR and SPOT is 0.08, 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	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (All Time) Calculated using the full available price history since Apr 3, 2018	0.30

Over the past year, the correlation between XAR and SPOT has dropped to 0.08 - well below their long-term average of 0.30, suggesting their price drivers have been diverging.

Return for Risk

XAR vs. SPOT — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 25
XAR Sharpe Ratio Rank: 23
XAR Sortino Ratio Rank: 24
XAR Omega Ratio Rank: 22
XAR Calmar Ratio Rank: 27
XAR Martin Ratio Rank: 27

SPOT

SPOT Risk / Return Rank: 18
SPOT Sharpe Ratio Rank: 16
SPOT Sortino Ratio Rank: 17
SPOT Omega Ratio Rank: 17
SPOT Calmar Ratio Rank: 20
SPOT Martin Ratio Rank: 20

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. SPOT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and Spotify Technology S.A. (SPOT). 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	SPOT	Difference
Sharpe ratio: Return per unit of total volatility	0.61	-0.65	+1.26
Sortino ratio: Return per unit of downside risk	1.06	-0.76	+1.82
Omega ratio: Gain probability vs. loss probability	1.12	0.90	+0.21
Calmar ratio: Return relative to maximum drawdown	0.99	-0.66	+1.66
Martin ratio: Return relative to average drawdown	2.66	-1.10	+3.76

XAR vs. SPOT - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 0.61, which is higher than the SPOT Sharpe Ratio of -0.65. The chart below compares the historical Sharpe Ratios of XAR and SPOT, 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. SPOT - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum SPOT drawdown of -80.51%. Use the drawdown chart below to compare losses from any high point for XAR and SPOT.

Drawdown Indicators

	XAR	SPOT	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-80.51%	+34.14%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-44.11%	+26.89%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-46.80%	+27.07%
Max Drawdown (5Y) Largest decline over 5 years	-28.29%	-76.39%	+48.10%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	—	—
Current Drawdown Current decline from peak	-11.36%	-36.55%	+25.19%
Average Drawdown Average peak-to-trough decline	-6.78%	-30.96%	+24.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.45%	26.55%	-20.10%

Volatility

XAR vs. SPOT - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 6.93%, while Spotify Technology S.A. (SPOT) has a volatility of 8.93%. This indicates that XAR experiences smaller price fluctuations and is considered to be less risky than SPOT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	SPOT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.93%	8.93%	-2.00%
Volatility (6M) Calculated over the trailing 6-month period	22.61%	37.30%	-14.69%
Volatility (1Y) Calculated over the trailing 1-year period	28.29%	44.99%	-16.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.70%	47.60%	-23.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.78%	47.21%	-22.43%

Dividends

XAR vs. SPOT - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, while SPOT has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPOT Spotify Technology S.A.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	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 SPOT in my portfolio?

XAR and SPOT have a correlation of 0.08, 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 SPOT?

SPOT has higher volatility (8.93%) compared to XAR (6.93%). In terms of maximum drawdown, XAR dropped -46.37% vs SPOT's -80.51%.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (0.61 vs -0.65), 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.