For investors seeking momentum, Invesco Aerospace & Defense ETF (PPA Quick QuotePPA - Free Report) is probably on radar. The fund just hit a 52-week high and is up 27.7% from its 52-week low price of $64.48/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:

PPA in Focus

The underlying SPADE Defense Index is comprised of approximately 50 U.S. companies whose shares are listed on a U.S. Exchange. These are companies that are principally engaged in the research, development, manufacture, operation and support of defense, military, homeland security and space operations. It charges 58 bps in annual fees(see: all the Industrial ETFs here).

Why the Move?

The aerospace and defense sector has been an area to watch lately, given the still ongoing Russia-Ukraine issues that could result in increased defense spending. Additionally, the sector has shown its resiliency to the recent market volatility, which is expected to prevail in the coming days.

More Gains Ahead?

Currently, PPA has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. The fund has a positive weighted alpha of 11.30.

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