ARMY vs XAR

ARMYDTema International Defense Innovation ETF

XARAState Street SPDR S&P Aerospace & Defense ETF

In short

ARMY Most defense ETFs are a bet on the Pentagon's suppliers. ARMY casts a wider net: about 40 aerospace and defense names across domestic and foreign markets with an innovation bent, for 0.68% net of a waiver through June 28, 2027.

XAR Most defense funds hand the wheel to a handful of giant primes. XAR spreads its roughly 50 aerospace and defense names close to equal weight, so a mid cap parts maker carries about the same load as a household-name contractor.

Stated mandate

ARMY The fund pursues its investment objective by concentrating at least 80% of net assets in domestic and foreign publicly listed companies in the Aerospace and Defense sector, including defense-supporting businesses with an innovation focus.

XAR The fund seeks to track, before fees and expenses, the total return performance of the S&P Aerospace & Defense Select Industry Index.

Why people hold it

• ARMY The mandate parks at least 80% of net assets in aerospace and defense, domestic and foreign listings alike, so non-US contractors sit alongside the familiar American primes.
• About 40 holdings chosen with an innovation focus rather than a roster of the biggest contractors, so each name carries real weight.
• A fee waiver runs through June 28, 2027, trimming the 0.75% gross expense ratio to 0.68% net.

• XAR Modified equal weighting keeps any single prime contractor from running the show: large, mid and small cap names carry similar weight in the index.ssga.com
• Costs 0.35% a year, under the 0.50% typical of defense funds and a hair below ITA at 0.37%. Cheap for a targeted industry bet.
• Trading since 2011 and now a multi-billion-dollar fund, it is one of the most established and best-built ways to own the US aerospace and defense industry.
• About 50 US-listed aerospace and defense stocks pulled from the S&P Total Market Index, so suppliers and smaller specialists sit alongside the famous names.ssga.com

Worth knowing

• ARMY That 0.68% net sits above the typical fee in defense ETFs, and US-focused trackers run cheaper: XAR at 0.35%, ITA at 0.37%, neither leaning on a waiver.
• Launched in September 2025, so there is little history to judge and trading has been light. Spreads deserve a look, and limit orders are the norm for funds this young.
• About 40 stocks, overwhelmingly industrials, many listed abroad: single-name stumbles, sector swings, and currency moves all land in returns.

• XAR One industry, tied to government budgets and order cycles. Expect bigger swings than a broad market fund.
• Equal weighting leans on smaller suppliers, which cuts both ways: less of the fund rides the megacap primes when those lead.ssga.com
• Distributions land quarterly, but this is an industry growth basket, not an income vehicle.

Full ARMY profile⁠

Full XAR profile⁠