For investors seeking momentum, SPDR S&P Aerospace & Defense ETF (XAR - Free Report) is probably on their radar now. The fund just hit a 52-week high and is up about 39.9% from its 52-week low price of $44.74/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 on where it might be headed:
XAR in Focus
This ETF tracks the S&P Aerospace & Defense Select Industry Index, giving investors exposure to the aerospace & defense sub-industry portion of the S&P. The fund holds 34 stocks in its basket with AUM of $224.5 million while charging 35 bps in fees and expenses. It exchanges more than 35,500 shares a day. The product has Spirit AeroSystems Holdings Inc., B/E Aerospace Inc. and Northrop Grumman Corporation as top holdings (see: all the Industrials ETFs here).
Why the Move?
This Aerospace & Defense ETF has been picking up momentum recently especially after the surprising victory of Trump in the U.S. presidential election. Trump’s promises of increased military spending are giving a boost to the sector.
More Gains Ahead?
It seems that XAR might continue with its strength given a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook. So there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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