XDEF vs. XAR

Last updated Jul 17, 2026

XDEF (Xtrackers Europe Defense Technologies ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both Aerospace & Defense funds - XDEF tracks the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index while XAR tracks the S&P Aerospace & Defense Select Industry Index. Both are passively managed. A 0.69 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

XDEF vs. XAR - Performance Comparison

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

Returns By Period

XDEF

• 1D: -1.04%
• 1M: -3.42%
• 6M: -99.26%
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

XAR

• 1D: -2.73%
• 1M: -8.05%
• 6M: -10.45%
• YTD: 7.46%
• 1Y: 19.54%
• 3Y*: 29.13%
• 5Y*: 16.33%
• 10Y*: 17.16%

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

XDEF vs. XAR - Yearly Performance Comparison

	2026 (YTD)
XDEF Xtrackers Europe Defense Technologies ETF	-99.18%
XAR SPDR S&P Aerospace & Defense ETF	7.46%

Correlation

The correlation between XDEF and XAR is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 2, 2026	0.69

Return for Risk

XDEF vs. XAR — Risk / Return Rank

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

XDEF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

XAR

XAR Risk / Return Rank: 25
XAR Sharpe Ratio Rank: 23
XAR Sortino Ratio Rank: 25
XAR Omega Ratio Rank: 22
XAR Calmar Ratio Rank: 28
XAR Martin Ratio Rank: 28

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.

XDEF vs. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers Europe Defense Technologies ETF (XDEF) and SPDR S&P Aerospace & Defense ETF (XAR). 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.

	XDEF	XAR	Difference
Sharpe ratio: Return per unit of total volatility	—	0.69	—
Sortino ratio: Return per unit of downside risk	—	1.18	—
Omega ratio: Gain probability vs. loss probability	—	1.13	—
Calmar ratio: Return relative to maximum drawdown	—	1.14	—
Martin ratio: Return relative to average drawdown	—	3.07	—

Drawdowns

XDEF vs. XAR - Drawdown Comparison

The maximum XDEF drawdown since its inception was -99.30%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for XDEF and XAR.

Drawdown Indicators

	XDEF	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-99.30%	-46.37%	-52.93%
Max Drawdown (1Y) Largest decline over 1 year	—	-17.22%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-19.73%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-28.29%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-46.37%	—
Current Drawdown Current decline from peak	-99.27%	-11.45%	-87.82%
Average Drawdown Average peak-to-trough decline	-76.16%	-6.78%	-69.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.38%	—

Volatility

Volatility by Period

	XDEF	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	7.12%	—
Volatility (6M) Calculated over the trailing 6-month period	—	22.70%	—
Volatility (1Y) Calculated over the trailing 1-year period	139.53%	28.36%	+111.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	139.53%	23.79%	+115.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	139.53%	24.77%	+114.76%

XDEF vs. XAR - Expense Ratio Comparison

Both XDEF and XAR have an expense ratio of 0.35%.

Dividends

XDEF vs. XAR - Dividend Comparison

XDEF's dividend yield for the trailing twelve months is around 1.54%, more than XAR's 0.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XDEF Xtrackers Europe Defense Technologies ETF	1.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XDEF and XAR in my portfolio?

XDEF and XAR have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XDEF or XAR?

Both ETFs have the same 0.35% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XDEF or XAR?

XDEF and XAR have the same expense ratio: 0.35% per year.

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

XDEF has the higher dividend yield at 1.54%, compared with 0.31% for XAR.

What is the main difference between XDEF and XAR?

XDEF tracks STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: Xtrackers and State Street.