The markets are making a rotation into oil/gas, miners and commodities If you are not comfortable stock-picking but want to rotate into harder-asset defensive sectors You can use a simple ETF “satellite sleeve” for about 30% of the portfolio spread across oil/gas, utilities, broad energy, commodities, and miners Here are some suggestions $XLE 8% Oil & gas producers: XLE (Energy Select Sector SPDR) – large-cap integrated oil, E&Ps, and services, a liquid core energy holding. $MLPX 6% midstream This ETF provides targeted exposure to midstream energy infrastructure, including pipelines, storage, and transportation companies like TC Energy (TRP), Enbridge (ENB), and Williams Cos (WMB), which make up the top holdings. Plus tax efficient reports on a single 1099, no K1s 2nd choice would be $MLPA 6% – Utilities: $XLU defensive, dividend‑paying utilities tracks the Utilities Select Sector Index, offering market-cap weighted exposure to ~35 large-cap U.S. utilities from the S&P 500 5% – Broad commodity $BCD Longer Dated Strategy K-1 Free ETF (BCD) tracks a broad futures-based commodity index using longer-dated contracts (3+ months forward) across ~24 commodities like energy, metals, agriculture, and livestock, weighted by production and volume with sector caps. 5% – Precious‑metal miners: gold/silver miner ETF $SGDM , $SGDJ ,$SLVR Total Real Assets Tilt Please drop your thoughts in the comments .
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102 Comments
Le Corb@lecorb · 6moEdited
Great posts, those who consider this and see how it may fit in their portfolio and risk, would be wise to consider. You are a blessing to this community for sharing your experience and knowledge! Personally, removing the cash allocation, I am now 35% energy, gas, pipelines. Including utilities and infrastructure then 40%. I want real free cash flow and hard assets at this point in time, with safe dividends just in case I get caught in the downdraft and too late to sell, I want to be paid to wait!
Osmel @osmel86 · 6mo
So you’re suggesting them to move only 30% into the commodities? I don’t think that holding only 30% while leaving 70% outside of the commodity will be a good move right now but anyway, that’s my thought. Each person has his goals and timelines.
Sarah Giver@staystronggiver · 6mo
This is a great post, thank you Jesse. It's really fascinating what's happening to the miners and precious minerals space.
Satwinder Singh@thevalueinvestor · 6moEdited
I’ve been bullish on energy for quite some time, especially Canadian energy. Since COVID, producers have significantly lowered their breakeven costs (mid $30s/ low $40s per barrel), and they’re printing cash at current prices. Debt levels are at all time lows, and companies are returning capital to shareholders through aggressive buybacks and dividend growth. On average, Canadian oil companies have repurchased about 9% of their shares annually over the past five years (yes, you read that right).
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