Which Aerospace and Defense ETF Is the Better Buy: State Street's XAR or First Trust's MISL?
XAR's lower expense ratio and broader mid-cap exposure contrast with MISL's concentrated holdings in industry giants.
Overview
The State Street SPDR S&P Aerospace & Defense ETF (NYSEMKT:XAR) offers a lower-cost, equal-weighted approach to the sector, while the First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) provides a more concentrated, lower-volatility portfolio.
Investors seeking defense exposure often choose between market-cap-weighted strategies and more diversified alternatives. While both funds target the aerospace and defense industry, they differ significantly in their cost structures, weighting methodologies, and historical volatility profiles, which could influence their suitability for different portfolio roles.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.