For investors seeking momentum, Aerospace & Defense Invesco ETF (PPA Quick QuotePPA - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 48.37% from its 52-week low price of $77.50/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:

PPA in Focus

The underlying SPADE Defense Index comprises companies that are principally engaged in the research, development, manufacture, operation and support of defense, military, homeland security and space operations. The product charges 58 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 escalating geopolitical tensions. Increase in defense budgets by countries such as China and India also boosts the fund’s prospects. Rising deal activity in the sector, followed by robust cash reserves of companies and sustained investment in critical technologies are also expected to drive growth in the sector.

More Gains Ahead?

Currently, PPA has a Zacks ETF Rank #2 (Buy) and a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 42.66 (as per Barchart.com), which gives cues of a further rally.