What are SHLD and XAR and how do they differ fundamentally?

SHLD (Global X Defense Tech ETF) and XAR (S&P Aerospace Defense SPDR ETF) are exchange-traded funds targeting the aerospace and defence sectors. They differ primarily in their inception dates, expense ratios, net assets and dividend yields. SHLD launched in September 2023 with an expense ratio of 0.50% and a dividend yield of 0.67%, while XAR launched in September 2011 with an expense ratio of 0.35% and a dividend yield of 0.17%.

How do the expense ratios of SHLD and XAR compare?

SHLD has an expense ratio of 0.50%, which is 0.15 percentage points higher than XAR's 0.35%. Over time, the difference in these expense ratios can significantly impact net returns, especially for long-term investors. However, investors should consider these figures alongside the funds' specific holdings and performance records, as these factors also influence overall effectiveness.

What do the top holdings of SHLD and XAR look like?

SHLD's top holdings include PLTR, RTX, GD, LMT and NOC, while XAR's top holdings feature AVAV, HONA, RKLB, FTAI, KTOS, NOC, LMT, MOG.A, CW and GD. SHLD holds larger positions in Palantir and RTX, whereas XAR has a more distributed portfolio. Both funds share some common large-cap defence companies among their top 10 holdings.

How similar are the holdings of SHLD and XAR?

SHLD and XAR have different investment strategies reflected in their holdings. SHLD focuses more on technology-driven companies like Palantir, while XAR maintains a broader aerospace and defence sector exposure. Shared top-10 holdings like GD, LMT and NOC indicate overlapping investment themes, but the concentration levels vary significantly between the funds.

What should investors consider when evaluating fees?

When evaluating SHLD's 0.50% expense ratio against XAR's 0.35%, investors should consider that a lower expense ratio doesn't necessarily mean better performance. The fund's ability to generate returns and its alignment with investor goals should also factor into the decision. Over time, the difference in expense ratios can influence net returns significantly.

What types of investing goals are SHLD and XAR typically associated with?

SHLD is associated with exposure to tech-enabled defence solutions, while XAR provides broader aerospace and defence sector exposure. Investors might choose SHLD for specific technology exposure, whereas those preferring diversified sector representation could lean toward XAR.

How do dividends work in ETFs like SHLD and XAR?

Dividends in ETFs represent the distribution of profits earned from underlying holdings. SHLD has a dividend yield of 0.67%, higher than XAR's 0.17%. This reflects the income generation potential of each fund based on their respective portfolios. These yields can fluctuate depending on the performance and payout policies of the companies held by each fund.

How do the dividend yields of SHLD and XAR compare?

SHLD offers a dividend yield of 0.67%, compared to XAR's 0.17%. This difference reflects the varying income generation capabilities of their underlying portfolios and may indicate different approaches to dividend policies and capital allocation strategies. Investors should note that higher yields can come with different levels of risk.

Why are net assets and fund size important in ETF comparisons?

Net assets represent the total value of all the securities held by the ETF. SHLD has $7.1 billion in net assets, compared to XAR's $6.1 billion. Larger funds might provide more liquidity and stability, while smaller funds could potentially offer more concentrated exposure. It's important to compare net assets along with expense ratios, holdings and investment strategies.

What is an ETF expense ratio?

An ETF expense ratio is the annual fee charged by the fund provider to cover operational costs. For SHLD, the expense ratio is 0.50%, while XAR charges 0.35%. This fee impacts returns over time, with lower expense ratios allowing investors to retain a larger share of their investment gains.

What role do sector allocations play in ETFs?

Sector allocations in ETFs determine which industries the fund invests in. SHLD and XAR are classified under the industrials sector, with a focus on aerospace and defence. Sector allocation impacts the fund's risk and potential return, and aligning with an investor's strategic outlook.

What is meant by the term 'expense ratio'?

An expense ratio is the annual cost of managing and operating a fund, expressed as a percentage of total assets. For SHLD, the expense ratio is 0.50%, while for XAR, it is 0.35%. Investors should consider the impact of these fees on long-term returns.

SHLD vs XAR

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

This page compares the Global X Defense Tech ETF (SHLD) and the S&P Aerospace Defence SPDR ETF (XAR), focusing on fees, holdings, dividends and market tracking. SHLD has an expense ratio of 0.50%, while XAR is 0.35%. Net assets stand at $7.1 billion for SHLD and $6.1 billion for XAR. Dividend yields are 0.67% for SHLD and 0.17% for XAR. Inception dates are Sep 11, 2023 for SHLD and Sep 28, 2011 for XAR. Educational content, not financial advice.

This page compares the Global X Defense Tech ETF (SHLD) and the S&P Aerospace Defence SPDR ETF (XAR), focusing on fees, holdings, dividends and market tracking. SHLD has an expense ratio of 0.50%, whi...

Fund Snapshot

Key Fund Metrics

SHLD

Metric

XAR

0.50%

Expense Ratio

0.35%

0.67%

Dividend Yield

0.17%

$7.14B

Net Assets

$6.10B

61

Holdings

52

Sep 11, 2023

Inception Date

Sep 28, 2011

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Index Tracked

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Industrials

Fund Category

Industrials

XAR costs about $15.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SHLD	XAR
GDGeneral Dynamics Corporation	8.54%	2.87%
LMTLockheed Martin Corporation	8.29%	2.92%
NOCNorthrop Grumman Corporation	7.88%	2.92%
MOG.AMoog Inc.	1.56%	2.87%

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Investment Analysis

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