The ARK Space & Defense Innovation ETF (NYSEMKT:ARKX) offers actively managed exposure to disruptive space technologies, while the State Street SPDR S&P Aerospace & Defense ETF (NYSEMKT:XAR) provides low-cost, indexed-based access to established aerospace and defense companies.
The aerospace and defense sectors have attracted greater attention as technological innovation accelerates in orbit and on the ground
Both the State Street fund and the ARK fund offer ways to capture this momentum, though they vary significantly in their cost structures, historical volatility, and sector concentrations. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
Dividend yield is the trailing-12-month distribution yield. Investors may find the State Street fund significantly more affordable than the ARK fund. The State Street fund operates with an expense ratio that is less than half of what is charged for the ARK fund’s active management.