Aerospace & Defense Sector (XAR) Bullish Breakout Kicks Off 2026

The geopolitical storm clouds have been stubborn and just don’t seem to be going away any time soon. And this could continue to boost defense stocks into 2026.

Today, we share a chart of the Aerospace & Defense Sector ETF (NYSEARCA: XAR) to highlight the tailwind that is carrying it higher.

More specifically, we want to draw attention to the recent breakout to new highs.

This is clearly bullish for XAR… but perhaps not so bullish for the prospects of war.

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$XAR Aerospace & Defense Sector ETF Chart

Here we can the big 1-2-3 day move to new highs. Barring an immediate reversal, this is bullish for defense stocks and their prospects into early 2026.

xar aerospace and defense sector etf trading bullish buying chart january

Twitter: @andrewnyquist

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.