For investors seeking momentum, iShares U.S. Aerospace & Defense ETF (ITA Quick QuoteITA - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 25.6% from its 52-week low price of $91.02/share.

But are more gains in store for this ETF? Let’s 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:

ITA in Focus

The underlying Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market. It charges 39 bps in annual fees.

Why the Move?

Aerospace and defense stocks have rallied lately with rising geopolitical tensions. The Russia-Ukraine war is unlikely to end soon, North Korean saber rattling has been on the rise, and China-Taiwan tensions have flared up since President Xi secured a third term in office. Rising geopolitical tensions could result in increased defense spending by the United States and its European allies as they try to counter military ambitions of China and Russia.

More Gains Ahead?

Currently, ITA has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other.