#7 - SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR)
A great way to get diversified exposure to the drone sector is through an exchange-traded fund (ETF). These can give you access to some of the big names in the sector while helping to mitigate risk.
The SPDR S&P Aerospace & Defense ETF (NYSEARCA: XAR) isn’t a pure-play drone stock fund, but it does include several of the stocks in this presentation. It also gives you exposure to many of the biggest names in aerospace and defense, both attractive sectors.
The fund is a modified equal-weighted fund that tracks the S&P Aerospace & Defense Industry Index. As of October 3, 2024, the fund is up 17% in 2024, with much of those gains coming since April 2024.
As of this writing, the XAR ETF has 34 holdings, with several companies in the drone business among its 10 largest positions. The fund has $2.41 billion in assets under management (AUM) and has an attractively low expense ratio of 0.35%.
About SPDR S&P Aerospace & Defense ETF
The SPDR S&P Aerospace & Defense ETF (XAR) is an exchange-traded fund that mostly invests in industrials equity. The fund tracks an equal-weighted index of US aerospace & defense companies. XAR was launched on Sep 28, 2011 and is managed by State Street.
- Current Price
- $165.05
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $164.51 (0.3% Downside)
As you can see, many companies are well on the way to taking drones from being a novel idea to something that we can't imagine how we ever lived without, like our smartphones. The applications are numerous and growing every day.
If you're still on the fence about investing in drone stocks, here's something to consider. Startup companies (most of which are not publicly traded) are receiving an average of $27.2 million per funding round. And this investment is coming from both the public and private sectors. Clearly, major institutions see a benefit in putting their capital to work in these companies.
MarketBeat helps you stay on top of the information that affects these companies. Even if you don't want to start investing in drone stocks today, you can add one or more of these stocks to a watchlist, and you'll receive alerts about news that affects those companies and their stocks.
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