NATO's June 2025 Hague Summit produced a target that will reshape the aerospace and defense industry for the next decade.
If you're interested in broad exposure to the Industrials - Aerospace & Defense segment of the equity market, look no further than the State Street SPDR S&P Aerospace & Defense ETF (XAR), a passively managed exchange traded fund launched on September 28, 2011.
Launched on 09/28/2011, the State Street SPDR S&P Aerospace & Defense ETF (XAR) is a smart beta exchange traded fund offering broad exposure to the Industrials ETFs category of the market.
| XHAM Exchange | US Country |
The fund mentioned is designed to closely follow the performance of the S&P Aerospace & Defense Select Industry Index. This index captures the essence of the aerospace and defense sector within the broader S&P Total Market Index (S&P TMI). By adopting a sampling strategy, the fund aims to mirror the performance of the index as closely as possible. It commits at least 80% of its total assets directly into securities that are part of the index, effectively making it a substantial stakeholder in the aerospace and defense industry's market performance.
This product is geared towards investors seeking exposure to the aerospace and defense industry as defined by the S&P Aerospace & Defense Select Industry Index. The fund invests at least 80% of its assets in the securities making up the index. By doing so, it offers investors a way to gain indirect exposure to leading companies in the aerospace and defense sector, providing a diversified investment within this niche market.
As part of its investment approach, the fund employs a sampling strategy. This means it does not replicate the index exactly but selects a representative sample of securities that collectively have a similar profile to the index. This strategy is employed to manage costs and achieve a balance between closely tracking the index's performance and maintaining operational efficiency in managing the fund.