Top ETFs to Buy: Why Energy Exposure Deserves Your Attention in 2026

When investors hunt for top ETFs to buy, they often overlook sectors positioned to benefit from seismic technological shifts. Yet the Vanguard Energy ETF (NYSEMKT: VDE) presents a compelling case precisely because of one overlooked catalyst: the explosive growth of artificial intelligence infrastructure demands an enormous amount of power.

Exchange-traded funds remain one of the most accessible ways to build diversified portfolios—you get the flexibility of stock trading with mutual fund-style diversification. But not all ETFs are created equal. The question isn’t just whether to buy ETFs, but which ones will capture tomorrow’s most powerful trends.

The Hidden AI Advantage: Why Energy Demand Is About to Surge

Here’s something most investors miss: data centers powering AI are consuming energy at unprecedented rates. According to BloombergNEF’s latest forecast, data-center power demand is projected to hit 106 gigawatts by 2035—a staggering 36% increase from projections made just seven months earlier. The trend is accelerating faster than anyone anticipated.

The scale becomes even more dramatic when you look at individual facilities. Today, only 10% of data centers require more than 50 megawatts of electricity. But within the next decade, newly constructed facilities will routinely draw over 100 megawatts. Some of the largest installations will exceed 500 megawatts, with a few surpassing 1 gigawatt—roughly equivalent to a nuclear power plant’s output.

This represents a fundamental shift in how we power the digital economy, making energy stocks and energy-focused ETFs some of the top options to buy for investors positioned to benefit from this transition.

Cost Efficiency: The Vanguard Advantage

Beyond the energy opportunity, the structural appeal of top ETFs often comes down to one factor: fees. This is where Vanguard’s reputation for cost management shines. The Vanguard Energy ETF charges an annual expense ratio of just 0.09%—meaning you pay only $9 per year on every $10,000 invested.

That seemingly small difference compounds dramatically over decades. A lower fee structure preserves more of your returns in your pocket rather than in fund manager fees, giving you a meaningful advantage in long-term wealth building.

Income Generation: Solid Dividend Returns

For investors seeking regular income alongside growth potential, the dividend yield matters. The Vanguard Energy ETF currently offers a dividend yield around 3%, providing a steady income stream that many investors find attractive.

This combination—capital appreciation potential from rising energy demand plus consistent dividend payments—makes it worth evaluating among top ETFs to buy for income-focused portfolios.

What History Teaches About Opportunity Recognition

Sometimes the best way to evaluate investment decisions is through historical perspective. Consider Netflix: an investor who recognized its potential on December 17, 2004, and invested $1,000 at that time would have seen their position grow to $490,703 by early 2026. Similarly, Nvidia investors who acted on April 15, 2005, with a $1,000 investment would have accumulated $1,157,689.

These weren’t obvious choices at the time. Yet investors who recognized the transformative power of emerging technologies positioned themselves for outsized returns. The energy sector’s evolution driven by AI infrastructure may represent a similar inflection point.

Making Your Decision: A Balanced View

While the opportunity appears compelling, prudent investing requires acknowledging that nothing is guaranteed. The energy sector may face headwinds from policy changes, technological disruption, or economic shifts. However, the structural demand dynamics are hard to ignore.

Before deciding whether top ETFs to buy should include energy exposure, consider your investment timeline, risk tolerance, and portfolio composition. For those seeking long-term growth with income generation and modest fees, this ETF warrants serious consideration.

The path to building wealth often involves identifying sectors and funds positioned ahead of major trends—not after they’ve become obvious to everyone. Energy infrastructure supporting AI growth may be one of those opportunities.