XAR: A Good Balanced Approach To An Industry That Won't Stop

seekingalpha05-06

Monty Rakusen The aerospace and defense industry is an industry that is not going away. There's far too much importance in a competitive world to this part of the economy, given governmental focus on ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2433640962?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1442424643/image_1442424643.jpg","is_english":true,"pubTime":"2024-05-06 23:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2433640962","market":"fut","top_or_hot":-1,"title":"XAR: A Good Balanced Approach To An Industry That Won't Stop","media":"seekingalpha","content":"<div>\n<p>Monty Rakusen The aerospace and defense industry is an industry that is not going away. There's far too much importance in a competitive world to this part of the economy, given governmental focus on ...</p>\n\n<a href=\"https://seekingalpha.com/article/4689774-xar-good-balanced-approach-to-industry-that-wont-stop\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>XAR: A Good Balanced Approach To An Industry That Won't Stop</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nXAR: A Good Balanced Approach To An Industry That Won't Stop\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-06 23:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4689774-xar-good-balanced-approach-to-industry-that-wont-stop><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monty Rakusen The aerospace and defense industry is an industry that is not going away. There's far too much importance in a competitive world to this part of the economy, given governmental focus on ...</p>\n\n<a href=\"https://seekingalpha.com/article/4689774-xar-good-balanced-approach-to-industry-that-wont-stop\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://seekingalpha.com/article/4689774-xar-good-balanced-approach-to-industry-that-wont-stop","article_id":"2433640962","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1442424643/image_1442424643.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2433640962","pubTimestamp":1715008412,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Big picture wise, there's a ton of growth potential. Global defense spending will never decline, and the final frontier of space exploration is still very much in the infancy stage. XAR is a simple way to gain exposure in a clean vehicle to a part of the marketplace which will have a tailwind, independent of whether we are in an expansion or recession. It's also a part of the market that likely benefits from AI and significant technological advancements. Increasingly, we are in a tech race war with other countries, which means defensive systems and technologies will only grow more overtime. And unless we find ourselves","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","BK4550":"红杉资本持仓","BK4588":"碎股","PPA":"国防航太ETF-PowerShares","XAR":"SPDR S&P Aerospace & Defense ETF"},"translate_title":"XAR：一个不会停止的行业的良好平衡方法","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PPA":1,"XAR":1,"FDN":0.62},"content_text":"Monty Rakusen The aerospace and defense industry is an industry that is not going away. There's far too much importance in a competitive world to this part of the economy, given governmental focus on national security and the continuous push for cutting-edge engineering. If anything, the AI race is only going to accentuate this. That's why the SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR) is worth considering. XAR is a passively managed exchange-traded fund that seeks to replicate the performance of the S&P Aerospace & Defense Select Industry Index. This index includes a screened selection of companies operating within the aerospace and defense sub-industries, offering investors diversified exposure to this highly important sector. XAR provides concentrated exposure for those who want to tilt towards aerospace and defense. Despite the industry concentration, though, XAR offers pretty good diversification within the sector by including a range of large, mid, and small-cap companies. As an ETF traded on major exchanges, XAR offers investors the convenience of real-time pricing and intraday liquidity, facilitating seamless entry and exit strategies. If you're a trader and want to tactically position because of sudden geopolitical risk, this is important for you. And with a low expense ratio of 0.35%, XAR ensures that a larger portion of returns is retained by investors. Dissecting the Holdings: A Closer Look One of the things I like about the fund is its equal-weighted exposure. This is a positive to me at this point in the cycle given concentration dynamics across the market which I believe resolve themselves by a broadening out of relative outperformance by companies that have performed poorly in this cycle. The equal weighting helps mitigate risk while also allowing for the catch-up trade to benefit the fund. ssga.com Peer Comparison: A Question Of Weighting Style It's worth comparing XAR to the Invesco Aerospace & Defense ETF (PPA) which has a higher concentration of stocks weighting wise. No surprise - PPA has outperformed, given the downtrend ratio of XAR to PPA. Not necessarily a bad thing for XAR as I suspect equal weighting more balanced approaches will do better across the board. Despite the downtrend here, I'd still favor XAR over PPA in the long term. stockcharts.com Pros and Cons of Investing in XAR So why consider XAR? Big picture wise, there's a ton of growth potential. Global defense spending will never decline, and the final frontier of space exploration is still very much in the infancy stage. XAR is a simple way to gain exposure in a clean vehicle to a part of the marketplace which will have a tailwind, independent of whether we are in an expansion or recession. It's also a part of the market that likely benefits from AI and significant technological advancements. Increasingly, we are in a tech race war with other countries, which means defensive systems and technologies will only grow more overtime. And unless we find ourselves in a period of prolonged peace (which won't happen anytime soon), XAR should benefit. Having said that, there are negatives. While XAR is not as dependent on the economic cycle, it can be dependent upon political party and still be (somewhat) constrained by government budgets. If, for example, the appetite for US debt drops further than it already has, funding defense spending could at the margin get challenged. There's also idiosyncratic elements, where regulator risks could impact specific stocks. Because this is equal weight, though, I don't consider this a major risk. The Final Verdict: To Invest or Not to Invest?  Investing in the XAR is an easy way to participate in the growth of the aerospace and defense sector, a dynamic industry that sits at the intersection of innovation and national security. For investors seeking exposure to a high-growth industry with the potential for substantial returns, XAR could be an attractive addition to a well-diversified portfolio. Its focused approach, coupled with the diversification benefits within the sector, is worth putting an allocation to. Just be mindful of the weighting approach with this fund, which has hurt the fund compared to other aerospace and defense plays, but may be the exact reason why it outperforms next.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2433640962"}