For investors seeking momentum, SPDR S&P Aerospace & Defense ETF (XAR Quick QuoteXAR - Free Report) is probably on radar. The fund just hit a 52-week high and is up roughly 44% from its 52-week low price of $78.96/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

XAR provides exposure to the aerospace & defense corner of the broad U.S. stock market with diversification across various market caps. The product charges 35 basis points in fees (see: all the Industrials ETFs here).

Why the Move?

The aerospace & defense corner of the U.S. stock market has been an area to watch lately, given the rise in Middle East tensions. The U.S. drone strike near the Baghdad international airport last week killed the top Iranian commander Qasem Soleimani and fueled bets of increased military actions to counter retaliatory responses from Tehran.

More Gains Ahead?

Currently, XAR has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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