Howdy, I’m looking to for space + defense exposure without having to pick individual stocks. Despite the high expense ratio, UFO seems like the best space-focused ETF available, so I’m considering pairing that with either ITA or XAR.
**UFO + ITA**: cleaner split, lower overlap risk, lower volatility, less exposure to smaller/innovative defense names
**UFO + XAR**: more mid/small-cap defense exposure, potentially higher upside, higher volatility and more overlap risk
Goal is broad exposure with minimal overlap and low maintenance. Given the trade-offs, I’m curious which combo people here would prefer long-term and why. If you’ve held either, how have they behaved in drawdowns?
Open to other suggestions as well. Thanks!