Overview
Equal-weighted US aerospace & defense ETF giving every company the same 3-4% weight. Axon, Curtiss-Wright, and L3Harris get equal billing alongside Lockheed and Northrop. Broader mid-cap defense exposure than ITA.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| AXON | Axon Enterprise | 3.8% |
| CW | Curtiss-Wright | 3.7% |
| LMT | Lockheed Martin | 3.6% |
| RTX | RTX Corp. | 3.6% |
| NOC | Northrop Grumman | 3.5% |
| GD | General Dynamics | 3.5% |
| HWM | Howmet Aerospace | 3.4% |
| TDG | TransDigm Group | 3.4% |
| LDOS | Leidos Holdings | 3.3% |
| GE | GE Aerospace | 3.3% |
Fund Details
Investment Thesis
XAR's equal-weight methodology distinguishes it from ITA's market-cap weighted approach by giving roughly equal 3-4% weights to all aerospace and defense companies. This provides meaningful exposure to innovative mid-cap defense technology companies like Axon Enterprise and Curtiss-Wright alongside the large prime contractors. Equal-weight has historically outperformed during periods when mid-tier defense technology companies win new program contracts or receive acquisition premiums. XAR captures the full breadth of the US defense industrial base from avionics to munitions to space systems.
Who It's For
Defense sector investors who want equal exposure across the full US aerospace and defense supply chain rather than concentration in the five largest prime contractors. XAR suits those who believe mid-cap defense technology and specialized manufacturers will outperform the primes during defense modernization cycles. The equal-weight approach provides more balanced exposure to emerging defense technology themes than market-cap alternatives like ITA.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $62.18 | -- |
| 2017 | $76.82 | +23.5% |
| 2018 | $72.42 | -5.7% |
| 2019 | $98.42 | +35.9% |
| 2020 | $88.42 | -10.2% |
| 2021 | $118.42 | +33.9% |
| 2022 | $118.18 | -0.2% |
| 2023 | $132.42 | +12.1% |
| 2024 | $132.18 | -0.2% |
| 2025 | $169.46 | +28.2% |
| Year | Yield |
|---|---|
| 2016 | 0.72% |
| 2017 | 0.62% |
| 2018 | 0.72% |
| 2019 | 0.62% |
| 2020 | 0.72% |
| 2021 | 0.58% |
| 2022 | 0.68% |
| 2023 | 0.62% |
| 2024 | 0.68% |
| 2025 | 0.72% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $0.8B | -- |
| 2017 | $1.2B | +50.0% |
| 2018 | $1.0B | -16.7% |
| 2019 | $1.6B | +60.0% |
| 2020 | $1.2B | -25.0% |
| 2021 | $1.8B | +50.0% |
| 2022 | $2.0B | +11.1% |
| 2023 | $2.4B | +20.0% |
| 2024 | $2.2B | -8.3% |
| 2025 | $2.0B | -9.1% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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