by Sanghamitra Saha Published on February 17, 2017

XAR

For investors seeking momentum, SPDR S&P Aerospace & Defense ETF (XAR - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 46.3% from its 52-week low price of $46.37/share.

But are more gains in store for this ETF? Lets 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 U.S. aerospace & defense industry. The fund holds 38 stocks in its basket. It charges 35 bps in fees and expenses. The product has Arconic Inc., Huntington Ingalls Industries, TASER International Inc., BWX Technologies Inc. and Boeing Company as the top holdings (see: all the Industrials ETFs here).

Why the Move?

This Aerospace & Defense ETF has been gathering momentum recently on decent earnings. President Trumps promises of increased military spending are possibly giving a boost to the sector. Plus, Trump is likely to visit Boeings North Carolina facility for the rollout of the first 787-10 Dreamliner on Friday. This possibility of a better relation between Boeing and Trump (who previously accused Boeing for charging high costs for Air Force One) is benefiting the fund.

More Gains Ahead?

It seems that XAR might continue with its strength given a Zacks ETF Rank of 1 or Strong Buy rating with a Medium risk outlook. Moreover, the fund has a positive weighted alpha of 39.90. A positive weighted alpha hint at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.

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Aerospace & Defense ETF (XAR) Hits New 52-Week High - Zacks.com