This ASX-traded ETF provides Australian investors with exposure to a diversified portfolio of the world’s largest oil and gas companies by tracking a global energy sector index, with currency exposure hedged to the Australian dollar. The heavyweight local energy names are trading well below their highs, but it’s a very different story in the US, which is helping the FUEL ETF power to new highs this week:
- The ETF currently holds 47 stocks, with its 5 largest positions currently Exxon, Chevron, Shell, TotalEnergies, and Enbridge.
We continue to believe that global energy demands will increase significantly in the coming years, and with renewable sources struggling to make a meaningful contribution, this ETF has a real tailwind. Renewable sources account for about 13–15% of total final energy consumption today.
- We are looking for the FUEL ETF to consolidate recent gains over the coming weeks/months.
MM is cautiously bullish towards the FUEL ETF around $8
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