While headlines screamed about AI and tech, energy quietly delivered consistent returns—about 20% in a stagnant market. From oil flowing through the Strait of Hormuz to electricity powering AI data centers, the sector’s fundamentals created gains that didn’t require hype to exist. Institutional capital noticed, rotating quietly into diversified energy ETFs and dividend-generating leaders like ExxonMobil and Chevron. For investors overwhelmed by noise, energy offered clarity: tangible demand, durable cash flows, and visibility that other sectors lacked.

At the end, we show why owning energy isn’t about chasing excitement—it’s about capturing real, sustained cash flow while attention drifts elsewhere. Read the full newsletter to uncover the ETFs and companies quietly driving 2026’s strongest trade.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

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Picture this: Five years ago, Freeport-McMoRan $FCX ( ▼ 0.64% ) stock was trading around $34 a share. Fast forward to today, it's sitting at $64.34—that's a solid +89.74% jump, or about +$30 from its level back then. The chart shows a clear upward trend overall, with ups and downs tied to copper prices, but strong gains in recent years as demand for metals stays high.

The 52-week high stands at $69.44, marking the peak the stock hit in the last year and showing it has room to push higher during good cycles.

To break down that growth simply: The compound annual growth rate (CAGR) over those five years is about 13.7% based on price alone (total returns including dividends come in closer to 15-16% from broader data). In plain words, that's the average yearly lift that turned a decent start into meaningful performance over time.

Now, imagine jumping in with dollar-cost averaging (DCA)—the straightforward plan of putting $500 in every month, no matter the price swings, for the next five years. You put in a total of $30,000 out of pocket across 60 months. This method lets you buy more shares on dips and fewer on highs, averaging out your cost nicely.

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If FCX keeps growing at a pace similar to its historical 13.7% annual CAGR (or slightly higher with dividends factored in), your regular investments would compound steadily. Each $500 adds to the pile and grows over the remaining months. After five years, your total could reach around $42,000 to $45,000 (depending on exact timing and if we lean toward the higher total return figure). That works out to a gain of about $12,000 to $15,000 on your $30,000 invested—a nice 40-50% overall return.

Of course, past growth doesn't promise the same going forward—copper prices, global demand, mining costs, and economic shifts can change things. But FCX's role as a major copper producer, with exposure to electrification and energy transition trends, keeps the outlook interesting for patient investors. Your monthly $500 stays simple and manageable, while time and compounding handle the rest.

The metals sector often benefits from big-picture needs like renewables and infrastructure. Staying consistent, even through any pullbacks, is what usually leads to solid long-term results.

Ready to let this steady strategy work for you?

While screens stayed glued to artificial intelligence headlines and every market debate circled back to megacap tech, something far less dramatic happened in the background. Energy simply worked.

Not loudly. Not with hype. Just consistently.

In a year when the broader market barely moved, energy surged ahead—delivering roughly 20% gains while much of the S&P 500 stalled. This wasn’t a speculative bounce or a meme-driven spike. It was capital responding to pressure points that matter: supply constraints, geopolitical risk, rising power demand, and cash flows that don’t need optimism to exist.

This matters for investors who don’t have the luxury of watching markets all day. The real edge right now isn’t speed—it’s noticing what keeps moving even when attention drifts elsewhere.

Energy did exactly that.

Energy’s strength in 2026 is rooted in five forces that reinforce one another, rather than cancel out.

The most visible catalyst sits in a narrow stretch of water: the Strait of Hormuz. Roughly 31% of the world’s seaborne crude oil passes through it every day. Even partial disruptions immediately reprice risk. Oil pushing past $71 per barrel wasn’t speculation—it was markets reacting to vulnerability.

At the same time, global supply growth has proven slower than expected. Rebuilding underproducing regions takes years, not quarters. Demand, meanwhile, keeps advancing.

The less obvious—but more durable—force is electricity. AI isn’t just a software revolution; it’s a power-intensive one. Data centers, model training, inference workloads—all require energy at scale. In the U.S., more than 40% of electricity still comes from natural gas, making it the bridge fuel of the AI era.

Natural gas prices reflected that reality early in the year, surging sharply during peak demand. Forecasts now show the strongest multi-year electricity demand growth since the early 2000s.

Layer on institutional capital rotating aggressively into energy ETFs, and the picture becomes clearer: this is not a short-term trade. It’s a repricing of relevance.

Energy exposure doesn’t require stock picking. The structure matters more than the ticker.

Vanguard Energy ETF $VDE ( ▲ 0.38% )
This is the broadest expression of the energy thesis. With exposure to more than 100 companies across large, mid, and small caps, it captures the entire energy ecosystem—from integrated oil majors to pipelines and exploration firms. Costs are minimal, diversification is high, and income is meaningful. It fits investors who value simplicity and long-term positioning.

Energy Select Sector SPDR Fund $XLE ( ▲ 0.33% )
This is where institutions concentrate. Highly liquid, tightly traded, and heavily weighted toward industry leaders, XLE reflects conviction in scale and dominance. It suits investors who value flexibility—adding on pullbacks, trimming into strength—without sacrificing dividend income.

Fidelity MSCI Energy Index ETF $FENY ( ▲ 0.4% )
Structurally similar to VDE but slightly cheaper, FENY quietly appeals to cost-conscious investors already operating within the Fidelity ecosystem. It offers nearly identical exposure with minimal friction, making it a clean buy-and-hold vehicle.

All three deliver dividend yields that comfortably exceed the broader market—turning energy into both a growth and income story.

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Energy ETFs aren’t abstract concepts. Roughly 40% of every invested dollar in these funds sits inside two companies that dominate the sector:

ExxonMobil $XOM ( ▼ 0.35% )
A cash-generation machine. Tens of billions in operating cash flow. Decades of uninterrupted dividend growth. Massive buybacks. Production at multi-decade highs. This isn’t leverage—it’s scale working as designed.

Chevron $CVX ( ▼ 0.03% )
Equally disciplined. Strong balance sheet. Consistent shareholder returns. Production growth paired with capital restraint.

Together, these firms returned more than $60 billion to shareholders in a single year. That’s not speculative upside—it’s capital recycling back into investor hands.

When energy rallies, it’s not because narratives changed. It’s because cash flow did the talking.

Energy’s strength doesn’t remove risk—it reframes it.

Oil prices could cool if geopolitical tensions ease. Supply from OPEC+ could pressure margins. Analyst forecasts still expect earnings compression this year. Concentration in a few dominant players magnifies both upside and downside.

But here’s the distinction that matters: these risks exist alongside real demand growth, not instead of it.

AI-driven electricity consumption isn’t reversing. Natural gas isn’t being replaced overnight. Infrastructure takes time. Capital takes notice.

For investors stretched thin by noise, energy offers something rare right now: visibility. The drivers are tangible. The income is real. The valuations are grounded.

This isn’t about chasing what’s exciting. It’s about owning what’s necessary.

And in 2026, energy quietly became exactly that.

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Here's what's waiting for you:

As the world becomes increasingly digital, this question will be on the minds of millions seeking new income streams in 2026.

The answer is—Absolutely!

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