At the end of the day, ITA and XAR represent different avenues to the same destination: Profitable exposure to the aerospace industry. Over the past year, it has been almost impossible to go wrong with either fund.

One possible knock on aerospace stocks and ETFs is the argument that after last year’s surge, the industrial sector is fully and fairly valued. XLI was the second-best of the nine sector SPDR ETFs last year. However, ITA and XAR can accrue further upside for another reason: The durability of industrials in rising rate environments. That is right. Industrials are one of the best-performing sectors when interest rates rise. [A Sturdy Industrial ETF]

SPDR S&P Aerospace & Defense ETF

Tom Lydon’s clients own shares of General Electric.