from24/7 Wall St.
4 days agoSPDR's Aerospace & Defense ETF Took An Unusual Approach That Smoked The S&P 500 With 54% Run
When geopolitical tensions rise or defense budgets expand, investors often chase the sector through broad market funds. But SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR) doesn't work like most sector plays. It spreads capital equally across 41 holdings, giving smaller aerospace suppliers and emerging space companies the same weight as industry giants like Boeing ( NYSE:BA) and Lockheed Martin ( NYSE:LMT). That structural choice creates a fundamentally different risk profile than market-cap weighted alternatives.
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