Which Aviation ETF Is the Better Buy: State Street's Defense-Focused XAR or U.S. Global's Airline-Centric JETS?
State Street's aerospace fund turned $1,000 into $2,346 over five years, while the airline-focused competitor lagged with a steeper drawdown.
Overview
State Street SPDR S&P Aerospace & Defense ETF (NYSEMKT:XAR) provides broad-based industrial exposure at a lower cost than the airline-focused U.S. Global Jets ETF (NYSEMKT:JETS), which targets a more specific transportation niche.
Investors seeking exposure to flight and national security often compare these two funds. The State Street fund tracks a broad aerospace and defense index using a modified equal-weighting strategy, while the US Global fund concentrates specifically on global airline operators and aircraft manufacturing companies.
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.