Why These Three Energy Funds Deserve a Place in Your 2026 Portfolio

Global geopolitical tensions—from Middle East conflicts to the ongoing Russia-Ukraine situation—have reshaped commodity markets. Oil prices have surged due to supply disruptions from major producing nations, and governments worldwide have tightened their stance on energy imports. This volatile environment creates both challenges and opportunities for investors. Those seeking exposure to rising energy prices now look toward dedicated energy fund vehicles to capitalize on these market dynamics.

The current landscape makes energy fund investments particularly appealing. With crude prices climbing and energy equities gaining momentum, well-constructed energy funds provide a strategic way to benefit from sector strength without picking individual stocks. Below are three standout energy fund options, each with strong investment credentials and distinct approaches to capturing energy sector opportunities.

Geopolitical Tensions Drive Energy Fund Demand

Supply chain disruptions and geopolitical instability have made energy a focal point for investors. Russia’s status as a leading oil producer, combined with sanctions and trade restrictions, has kept commodity prices elevated. Similarly, political complications in Venezuela and ongoing Middle East tensions continue to pressure global energy supplies. Energy funds positioned to capture these dynamics are well-placed to outperform in the near term, as market volatility typically benefits seasoned energy fund managers with deep sector expertise.

T. Rowe Price New Era: Natural Resource Exposure for Inflation Protection

T. Rowe Price New Era (PRNEX) takes a diversified approach within the energy fund category. Rather than focusing exclusively on oil and gas, this energy fund allocates most capital to natural resource stocks—including energy companies—that benefit from inflationary pressures. The strategy also includes select growth companies that don’t directly own resources, providing balance and diversification within the energy fund framework.

Performance metrics are compelling. Over the three-year period, PRNEX delivered annualized returns of 7.9%. As of recent quarters, the fund held 109 positions with approximately 4.4% deployed in Shell Plc, reflecting concentrated exposure to a global energy giant. This energy fund appeals to investors seeking both commodity upside and portfolio stability through selective growth holdings.

Invesco SteelPath MLP Select 40: Capturing Value Across the Energy Supply Chain

Invesco SteelPath MLP Select 40 (MLPFX) operates with a different philosophy. This energy fund specializes in master limited partnerships (MLPs) and related securities—entities that profit from transporting, storing, processing, refining, and marketing energy commodities. By targeting the energy value chain rather than commodity production alone, this energy fund captures returns across multiple segments.

The performance speaks volumes: MLPFX generated 20.1% in annualized returns over three years, among the strongest in the energy fund space. Stuart Cartner has been a portfolio manager since 2010, bringing considerable experience to the energy fund’s management. Investors focused on yield and energy infrastructure typically gravitate toward this energy fund structure.

Fidelity Natural Resources Fund: Fundamental-Driven Energy Fund Selection

Fidelity Natural Resources Fund (FNARX) combines energy and precious metals exposure through fundamental analysis. This energy fund applies rigorous evaluation of company financials, competitive positioning, and industry dynamics to construct its portfolio. The discipline has paid dividends.

FNARX delivered 12.4% annualized returns over three years, positioning it solidly within leading energy fund performers. With an expense ratio of 0.69%, this energy fund maintains competitive fee structure while providing professional management. Fidelity’s research-intensive approach appeals to investors who want energy fund exposure backed by rigorous stock selection rather than passive commodity exposure.

The Case for Energy Fund Investment Today

Each of these energy funds offers a distinct pathway into the energy sector, yet all three share strong performance records and professional stewardship. Whether through diversified natural resources, energy infrastructure, or fundamental stock selection, these energy fund options reflect different investment philosophies suited to various investor preferences. In an environment where geopolitical risks continue to support commodity prices, strategic energy fund allocation remains a rational portfolio consideration for 2026 and beyond.