BetaShares Global Energy ETF (FUEL) $8.48

The ASX-traded BetaShares Global Energy ETF (FUEL) provides exposure to a diversified portfolio of the world’s largest energy companies, primarily in oil and gas – a great place to have been invested during a war in the Middle East. This ETF is an ideal way to gain exposure to global oil and gas stocks, with its largest 3 holdings today being Shell (8.4%), Chevron (7.5%), and Exxon (7.4%). The ETF has been a stellar performer over the last year, gaining ~27%, a very similar move to local heavyweight Woodside.

However, it doesn’t hold ASX names, hence investors forgo franking credits from the likes of Woodside, which we know is a major motivation for many MM subscribers.

The great energy paradox of our time: the world has never spent more on the transition away from fossil fuels, yet renewables still account for just 13–15% of total global final energy consumption. The gap between the rhetoric and the reality is where the investment opportunity lies. Global energy demand is accelerating driven by AI data centres, EV adoption, and the electrification of economies that have only just begun – the existing supply base simply cannot keep up. This ETF sits squarely in the path of that structural demand story. However, after surging ~75% from its 2025 low, we see little upside in the coming weeks/months unless the Iranian conflict does blow further out of control.

With peace talks gathering momentum it feels like a matter of when, not if, the oil price retreats. The FUEL ETF feels likely to follow it lower, but it has already retraced ~8%, and the long-term trend remains bullish, hence we aren’t expecting too much more on the downside.

• We are looking for the FUEL ETF to consolidate recent gains over the coming weeks/months before pushing higher, i.e. we like the risk/reward closer to the $8 area.