Investors seeking momentum may have PowerShares Aerospace & Defense (PPA Quick QuotePPA - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of PPA are up approximately 32.2% from the 52-week low of $37.28/share.

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

PPA in Focus

PPA focuses on providing exposure to aerospace and defense companies in the U.S. equity market. It charges 61 basis points in fees per year and has top holdings in Boeing (BA Quick QuoteBA - Free Report) , Lockheed Martin Corp (LMT Quick QuoteLMT - Free Report) and Honeywell International Inc (HON Quick QuoteHON - Free Report) with 7.70%, 7.05% and 6.56% allocation, respectively (as of August 29, 2017) (see all Industrials ETFs here).

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”. Moreover, just this week the North Korean premier tested one of his ballistic missiles over Japanese air space. Increasing tensions relating to North Korea 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, PPA has a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 26.80. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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