For investors seeking momentum, Global X Defense Tech ETF SHLD is probably on the radar. The fund just hit a 52-week high and is up 105.98% from its 52-week low price of $36.61/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 complicated geopolitical landscape. Recent developments, including U.S. military strikes in Syria, U.S. military operations in Venezuela and Trump’s renewed focus on acquiring Greenland, even through military action, underscore rising global instability and strengthen the case for Aerospace and Defense funds.
Additionally, persistent tensions across the Middle East and Asia’s key flashpoints, as well as President Trump’s proposal for a significantly larger U.S. military budget of $1.5 trillion in 2027, reinforce the strategic appeal of Aerospace and Defense funds in the current environment.
More Gains Ahead?
SHLD is expected to continue its strong performance in the near term, with a positive weighted alpha of 93.65 (as per Barchart.com), which gives cues of a further rally.
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Global X Defense Tech ETF (SHLD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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