The BetaShares Global Energy ETF (FUEL) provides exposure to a diversified portfolio of the world’s largest energy companies, primarily in oil and gas – a good place to be invested during a war in the Middle East. This ETF is a great way to gain exposure to international oil and gas stocks, but note 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.
We believe that global energy demands will increase significantly in the coming years, and with renewable sources struggling to make a meaningful contribution, this ETF does have an ongoing tailwind – renewable sources only account for about 13–15% of total final energy consumption today. However, after surging ~70% from its 2025 low, we see little upside in the coming weeks/months unless the Iranian conflict does blow further out of control.
- We are looking for the FUEL ETF to consolidate recent gains over the coming weeks/months, with the potential to move sharply lower on any resolution.
MM is neutral towards the FUEL ETF around $9.00
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