Aerospace & Defense Invesco ETF (PPA Quick QuotePPA - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 33.81% from its 52-week low price of $77.17/share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

PPA in Focus

The underlying SPADE Defense Index comprises companies that are principally engaged in the research, development, manufacture, operation and support of defense, military, homeland security and space operations. The product charges 58 bps in annual fees (see: all Industrials ETFs).

Why the Move?

The Aerospace and Defense sector has been an area to watch lately, given the escalating geopolitical tensions and the depletion of weapon stocks. The global aerospace and defense sector is poised to witness significant growth in the coming years.

The ongoing war in the Middle East and East Europe is causing geopolitical tensions of one form or another, resulting in heightened global military spending. Additionally, rising merger and acquisition activities and cheaper valuation are favorable for the sector.

More Gains Ahead?

Currently, PPA has a Zacks ETF Rank #2 (Buy) and a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 32.43, which gives cues of a further rally.