For investors seeking momentum, iShares U.S. Aerospace & Defense ETF (ITA Quick QuoteITA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 43.9% from its 52-week low price of $160.29/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:

ITA in Focus

The fund offers exposure to the Dow Jones U.S. Select Aerospace & Defense Index which measures the performance of the aerospace and defense sector of the U.S. equity market. Boeing, United Technologies and L3harris Technologies are the top three holdings of the fund. It charges 42 basis points in annual fees (see all Industrials ETFs here).

Why the Move?

Rising geopolitical risks and higher commercial demand are giving a boost to defense companies. There was an attack on Saudi Arabia’s largest oilfields in Hijra Khurais and the world’s biggest crude processing facility at Abqaiq on Sep 14. Iran is being blamed by the United States for carrying out such devastation.

Talks are doing rounds that a fighting between Iranian and United States forces in the Gulf could be in the cards. On Sunday night, President Donald Trump said "there is reason to believe" that the White House knows the identity of the wrongdoer, and that the military is "locked and loaded" to take action. This explains the recent run in defense ETFs.

More Gains Ahead?

Currently, ITA has a Zacks ETF Rank #2 (Buy) with a moderate risk outlook, suggesting that the outperformance could continue in the months ahead.

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