Can I use AirTags with my iPhone XR, and if so is all functionality available?

Our luggage was lost by an airline on a recent trip and it was only luck we tracked it down ourselves at a different airport. We'd like to get some luggage trackers to stop this happening again.

I have seen information saying that the AirTags require a certain operating system or later, which I have. However the Apple website also says "Precision Finding is compatible with iPhone 11...", and the list does not include iPhone X or XR. What does this mean? Will some functionality but not all of it work, and if so what will and what won't?