- XAR is a modified equal-weight ETF of U.S. Aerospace & Defense stocks that has delivered returns of over 20% annually in the last 10 years.
- The equal-weight approach is preferred as government contracts to top companies can vary year-over-year, and high-market-cap, non-pure-play defense stocks may have unwanted cyclical risks.
- The U.S. will always have a need for these types of companies, with defense spending increasing 3.45% per year since 2006.
- Even without a war, the potential will always be there for one as the U.S. has interests in 26 global conflicts, with many in a critical, worsening status.
For further details see:
XAR: The Best Way To Play The Reliable U.S. Aerospace & Defense Industry