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Defense ETF (ITA) Hits New 52-Week High

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For investors seeking momentum, iShares U.S. Aerospace & Defense ETF (ITA - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 60.42% from its 52-week low price of $129.14/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. The product charges 38 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 complicated geopolitical landscape. Increased defense spending by global economies has also boosted the fund’s prospects. Rising geopolitical tensions, including conflicts in the Middle East and the ongoing Russia-Ukraine war, are also expected to boost the fund’s prospects.

Additionally, President Trump’s recent comment that Ukraine could reclaim Russian-occupied territory sparked a rally in defense stocks.

More Gains Ahead?

Currently, ITA has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. It may continue its strong performance in the near term, with a positive weighted alpha of 42.23 (as of Barchart.com), which gives cues of a further rally.


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