Investors seeking momentum may have iShares U.S. Aerospace & Defense ETF(BATS:ITA)on radar now. The fund recently hit a new 52-week high. Shares of ITA are up approximately 34.9% from the 52-week low of $142.7/share.

But could there be more gains ahead for this ETF? Lets take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

ITA focuses on providing exposure to the Aerospace and Defense companies in the U.S. equity market. It charges 44 basis points in fees per year and has top holdings in Boeing Co(NYSE:BA), United Technologies Corp(NYSE:UTX)and Lockheed Martin Corporation(NYSE:LMT)with 10.98%, 7.83% and 7.81% allocation, respectively (as of August 14, 2017).

Why the Move?

Lately, the defense sector has been in the spotlight. Following threats from the North Korean premier Kim Jong-Un, President Donald Trump pledged that the threats will be met with fire and fury. Increasing tensions between the two regions have brought these sector ETFs into play again. Moreover, the earnings season has also been quite impressive for companies in this sector.

More Gains Ahead?

Currently, ITA has a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 29.10. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/08/us-aerospace-defense-etf-ita-hits-new-52-week-high-ggsyn/.

2017 InvestorPlace Media, LLC

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