ARKX vs. XAR: Two ETFs Worthy of Consideration

Jake Lerch, The Motley Fool

Wed, June 3, 2026 astatine 9:04 AM CDT 4 min read

The ARK Space & Defense Innovation ETF (NYSEMKT:ARKX) offers actively managed vulnerability to disruptive abstraction technologies, portion the State Street SPDR S&P Aerospace & Defense ETF (NYSEMKT:XAR) provides low-cost, indexed-based entree to established aerospace and defence companies.

The aerospace and defence sectors person attracted greater attraction arsenic technological innovation accelerates successful orbit and connected the ground. Both the State Street money and the ARK money connection ways to seizure this momentum, though they alteration importantly successful their outgo structures, humanities volatility, and assemblage concentrations.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Investors whitethorn find the State Street money importantly much affordable than the ARK fund. The State Street money operates with an disbursal ratio that is little than fractional of what is charged for the ARK fund’s progressive management.

Performance & hazard examination

What's wrong

The State Street SPDR S&P Aerospace & Defense ETF (XAR) follows a modified equal-weighted index, which helps supply unconcentrated vulnerability to large-, mid-, and small-cap stocks successful the industry. It focuses astir exclusively connected the concern sector, accounting for 99.00% of its portfolio. This money launched successful 2011 and maintains 41 holdings, with its largest positions including Rocket Lab USA (NASDAQ:RKLB) astatine 5.98%, Intuitive Machines (NASDAQ:LUNR) astatine 3.31%, and Carpenter Technology (NYSE:CRS) astatine 3.29%. It paid $0.88 per stock implicit the trailing 12 months.

The ARK Space & Defense Innovation ETF (ARKX) is actively managed and looks to place companies progressive successful orbital and suborbital aerospace, enabling technologies, and aerospace beneficiaries. Launched successful 2021, the money takes a much diversified approach, allocating 56.00% to industrials, 27.00% to technology, and 8.00% to user cyclicals. It presently holds 45 securities. Its apical positions see Rocket Lab USA astatine 8.94%, Advanced Micro Devices (NASDAQ:AMD) astatine 7.84%, and L3Harris Technologies (NYSE:LHX) astatine 7.04%. The money does not person a trailing-12-month dividend.