For investors seeking momentum, First Trust Indxx Aerospace & Defense ETF (MISL Quick QuoteMISL - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 89.5% from its 52-week low price of $26.46 per share.  

But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.

MISL in Focus

It offers exposure to U.S. companies engaged in business activities associated with certain aerospace and defense sub-themes. The fund charges 60 basis points (bps) in annual fees (See: all Industrial ETFs here).

What Led to the Rise?

U.S. President Trump’s proposed $1.5 trillion military budget, marking a staggering 50% increase, is likely the primary catalyst behind growth in the MISL fund, helping it reach a new 52-week high. Additionally, intense geopolitical tensions in Venezuela and the Middle East have been solidifying investor confidence in defense stocks, which must have also boosted this fund’s momentum lately.

More Gains Ahead?

MISL may continue its strong performance in the near term, with a positive weighted alpha of 67.90 (as per Barchart.com), which suggests a further rally.