Which Aerospace and Defense ETF Is the Better Buy: State Street's XAR or First Trust's MISL?

State Street's XAR and First Trust's MISL offer different approaches to aerospace and defense sector exposure. XAR uses an equal-weighted strategy with lower fees (0.35% expense ratio) and broader mid-cap/small-cap exposure, delivering stronger 1-year returns of 20.6%. MISL employs market-cap weighting with higher concentration in defense giants and tech companies, offering lower volatility but higher fees (0.6%) and lower returns (9.6%). For most long-term investors, XAR's lower costs and stronger performance make it the more practical choice.