Energy infrastructure investment remains focused on security and North American export capacity, with midstream ETFs and renewed emphasis on nuclear and coal.

While geopolitical headlines often focus on short-term volatility in the Middle East, the long-term investment case for energy remains centered on security, reliability, and North American export dominance. Stacey Morris, CFA, head of energy research at VettaFi, outlined long-term views on energy investing beyond the current oil price spike, emphasizing opportunities for advisors in infrastructure that supports global energy trade and baseload power sources that help ensure domestic energy security and stability.

Key takeaways

• Midstream ETFs such as AMLP and ENFR include companies that facilitate North American energy exports and are largely insulated from direct commodity price volatility if oil prices moderate.
• Renewed attention to energy security and affordability has created a tailwind for nuclear and coal.
• Because energy is a low-weight sector in the S&P 500, maintaining a permanent allocation can function as a geopolitical and inflation hedge when broader equity markets face pressure.

Midstream focus: income with less exposure to spot crude

For investors seeking income without the volatility of spot crude prices, the midstream sector remains a central allocation. Morris said midstream companies differ from upstream producers because they generally rely on a fee-based model rather than being directly sensitive to crude prices.

These companies support the export of North American energy—including liquefied natural gas (LNG), propane, and butane—without high exposure to price fluctuations. As North American exports become more attractive to global buyers looking for alternatives to unstable regions, ETFs such as the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) provide exposure to companies that move and store energy to facilitate exports. Morris also said current market dynamics have largely alleviated concerns about U.S. oil volume declines.

Baseload power: nuclear and coal in the energy security shift

Geopolitical instability has increased the emphasis on energy security, reliability, and affordability. In that context, Morris highlighted nuclear and coal for their role as baseload power sources that renewable energy cannot yet match.

On nuclear, Morris said the case is supported by energy security needs, particularly for countries that depend on LNG imports for power and face difficult conditions when supply is constrained. The Range Nuclear Energy Index ETF (NUKZ) is positioned as a vehicle for advisors to capture what Morris described as a nuclear renaissance driven by government policy and rising power demand from technology infrastructure.

Coal, Morris said, remains a critical component of global energy security. The Range Global Coal Index ETF (COAL) offers exposure to global coal industry companies. Morris noted that coal has not historically experienced supply disruptions on the scale seen with LNG, which makes it an important part of the energy mix for many countries, particularly in Asia.

Why a permanent energy allocation may matter

Morris pointed to the sector’s relatively small representation in broad equities. Energy stocks ended 2025 at less than 3% of the S&P 500, which she suggested may be too low given the sector’s role as an inflation and geopolitical hedge. She also noted that in 2022 and during other periods of volatility, energy was frequently the only sector delivering positive returns in down markets.

She argued that specialized energy ETFs should be considered more than cyclical trades, framing them as long-term portfolio holdings. The income component is a key part of the midstream case, while the energy security theme supports longer-term allocations to coal and nuclear as part of a diversified portfolio.