About XAR ETF
STATE STREET AEROSPACE ETF (XAR) holds a portfolio of aerospace and defense stocks. While the benchmark concentrates on large caps, XAR aims for 40/40/20 weighting among large, mid, and small caps respectively. As a result, it does not perfectly track the benchmark and tends to carry more risk. XAR holds 37 stocks and some of the top stocks are Goodrich Corporation (GR), Spirit AeroSystems, Triumph Group Incorporated, and Honeywell International (HON).
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
How did we identify this ETF:
A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. XAR trades well, average spreads are reasonable, underlying liquidity is excellent for block traders. Fees is reasonable for the exposure, and decent tracking means that realized costs are only slightly higher than advertised. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.