XAR vs. SPYG

Last updated Aug 2, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and SPYG (State Street SPDR Portfolio S&P 500 Growth ETF) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while SPYG is a S&P 500 fund tracking the S&P 500 Growth Index. Both are passively managed. Over the past 10 years, XAR returned 17.38%/yr vs 17.38%/yr for SPYG. Their 0.60 correlation means they have sometimes moved together and sometimes differently. XAR charges 0.35%/yr vs 0.04%/yr for SPYG.

Performance

XAR vs. SPYG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) and State Street SPDR Portfolio S&P 500 Growth ETF (SPYG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XAR having a 9.86% return and SPYG slightly higher at 10.06%. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: XAR at 17.38% and SPYG at 17.38%.

XAR

• 1D: 0.77%
• 1M: -7.89%
• 6M: -2.90%
• YTD: 9.86%
• 1Y: 24.03%
• 3Y*: 29.11%
• 5Y*: 16.36%
• 10Y*: 17.38%
• ALL TIME*: 18.36%

SPYG

• 1D: 1.45%
• 1M: -0.05%
• 6M: 9.50%
• YTD: 10.06%
• 1Y: 21.72%
• 3Y*: 24.04%
• 5Y*: 13.28%
• 10Y*: 17.38%
• ALL TIME*: 7.45%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPYG State Street SPDR Portfolio S&P 500 Growth ETF	$321.11M	$273.47M	$308.09M
XAR SPDR S&P Aerospace & Defense ETF	$64.82M	$59.56M	$61.10M

XAR vs. SPYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	9.86%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%
SPYG State Street SPDR Portfolio S&P 500 Growth ETF	10.06%	22.09%	35.99%	30.02%	-29.41%	32.01%	33.46%	30.84%	-0.12%	27.24%

Correlation

The correlation between XAR and SPYG is 0.54, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.54
Correlation (3Y) Balances recent behavior with more history.	0.54
Correlation (5Y) Shows whether the relationship held over a longer period.	0.60
Correlation (10Y) Provides a long-term view across more market conditions.	0.59
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.60

The correlation between XAR and SPYG has been stable across timeframes, ranging from 0.54 to 0.60 - a consistent structural relationship.

XAR vs. SPYG - Sectors Allocation Comparison

Sectors	XAR	SPYG
Industrials	95.8%	6.4%
Basic Materials	3.1%	0.3%
Technology	1.0%	52.3%
Communication Services	-	15.6%
Consumer Cyclical	-	8.6%
Consumer Defensive	-	1.0%
Energy	-	0.1%
Financial Services	-	8.7%
Healthcare	-	6.2%
Real Estate	-	0.6%
Utilities	-	0.4%

Return for Risk

XAR vs. SPYG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XAR

XAR Risk / Return Rank: 34
XAR Sharpe Ratio Rank: 32
XAR Sortino Ratio Rank: 34
XAR Omega Ratio Rank: 31
XAR Calmar Ratio Rank: 38
XAR Martin Ratio Rank: 35

SPYG

SPYG Risk / Return Rank: 43
SPYG Sharpe Ratio Rank: 44
SPYG Sortino Ratio Rank: 44
SPYG Omega Ratio Rank: 41
SPYG Calmar Ratio Rank: 40
SPYG Martin Ratio Rank: 46

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XAR vs. SPYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and State Street SPDR Portfolio S&P 500 Growth ETF (SPYG). 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	SPYG	Difference
Sharpe ratio: Return per unit of total volatility	0.79	1.08	-0.28
Sortino ratio: Return per unit of downside risk	1.29	1.58	-0.29
Omega ratio: Gain probability vs. loss probability	1.15	1.19	-0.04
Calmar ratio: Return relative to maximum drawdown	1.33	1.42	-0.10
Martin ratio: Return relative to average drawdown	3.45	5.17	-1.72

XAR vs. SPYG - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 0.79, which is comparable to the SPYG Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of XAR and SPYG, 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. SPYG - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum SPYG drawdown of -67.63%. Use the drawdown chart below to compare losses from any high point for XAR and SPYG.

Drawdown Indicators

	XAR	SPYG	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-67.63%	+21.26%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-13.76%	-3.46%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-22.14%	+2.41%
Max Drawdown (5Y) Largest decline over 5 years	-27.55%	-32.67%	+5.12%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-32.67%	-13.70%
Current Drawdown Current decline from peak	-9.47%	-4.33%	-5.14%
Average Drawdown Average peak-to-trough decline	-6.78%	-24.20%	+17.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.61%	3.78%	+2.83%

Volatility

XAR vs. SPYG - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 8.97% compared to State Street SPDR Portfolio S&P 500 Growth ETF (SPYG) at 6.08%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than SPYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	SPYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.97%	6.08%	+2.89%
Volatility (6M) Calculated over the trailing 6-month period	23.17%	14.85%	+8.32%
Volatility (1Y) Calculated over the trailing 1-year period	28.75%	18.18%	+10.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.84%	21.50%	+2.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.85%	20.79%	+4.06%

XAR vs. SPYG - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is higher than SPYG's 0.04% expense ratio.

Dividends

XAR vs. SPYG - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, less than SPYG's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPYG State Street SPDR Portfolio S&P 500 Growth ETF	0.49%	0.52%	0.60%	1.15%	1.03%	0.62%	0.90%	1.37%	1.51%	1.41%	1.55%	1.57%
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 SPYG in my portfolio?

XAR and SPYG have a correlation of 0.54, 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 SPYG?

XAR has higher volatility (8.97%) compared to SPYG (6.08%). In terms of maximum drawdown, XAR dropped -46.37% vs SPYG's -67.63%.

Which ETF is better, XAR or SPYG?

On 10-year performance, SPYG leads with 17.38% vs 17.38% for XAR. On fees, SPYG is cheaper at 0.04% per year. On volatility, SPYG has been the lower-risk option at 6.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or SPYG?

Over the 10-year period, SPYG has performed better with a 17.38% return vs 17.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or SPYG?

SPYG is cheaper with a 0.04% expense ratio, compared with 0.35% for XAR.

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

SPYG has the higher dividend yield at 0.49%, compared with 0.31% for XAR.

What is the main difference between XAR and SPYG?

XAR is categorized as Aerospace & Defense, while SPYG is S&P 500. XAR tracks S&P Aerospace & Defense Select Industry Index, while SPYG tracks S&P 500 Growth Index. Their fees differ too: 0.35% for XAR and 0.04% for SPYG.

Which has better risk-adjusted returns?

SPYG currently has the higher Sharpe Ratio (1.08 vs 0.79), 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.