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Originally Posted by vreihen16
Does anyone have an opinion on XAR in these strange global times? I like that Boeing isn't a major component, and the expense ratio seems lower than other similar ETFs.....
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What I normally do is look at the components of the portfolio and see what, if anything, it has that I don't already own in another fund. I have a subscription to Morningstar, which allows me to look at my total portfolio and see exactly how much of any given stock that I own across my entire portfolio.
This fund's top 10% of holdings make up 47% of its total assets. In there I see Axon, Curtis-Wright, Lockheed, L3, RTX, Northrop, GE Aerospace and others.
Then I would look at the major players in terms of LT performance and fair market value.
I might buy the fund, or buy a few individual components. I already own RTX and might, for instance, buy Northrop and Lockheed. Looking at NOC & LMT individually, they appear to be fairly valued. One could perform a similar process on the other holdings.
Morningstar gives this fund a 3-star (average) Bronze rating. It is up YTD less than the S&P and outperforms over 1-yr. Not so much longer term.
I have owned several sector funds over the years and am now down to only 3 or 4 on the basis of long term performance. I only buy riskier assets when they outperform a typical large cap growth fund in the long term. Sector investing is often cyclical.