For investors seeking momentum: Global X Defense Tech ETF (SHLD Quick QuoteSHLD - Free Report)  is probably on the radar. The fund just hit a 52-week high and is up 56.14% from its 52-week low price of $24.60/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:

SHLD in Focus

The underlying Global X Defense Tech Index seeks to provide exposure to defense technology companies that are positioned to benefit from technology, services, systems and hardware that cater to the defense and military sector. The product charges 50 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 boost 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, SHLD might continue its strong performance in the near term, with a positive weighted alpha of 47.71 (as per Barchart.com), which gives cues of a further rally.