Name: ETF Edge: How investors are handling geopolitical uncertainty and energy pricing whiplash
Uploaded: 2026-01-12T22:54:40+00:00
Duration: 1011 s

Speakers

Jan van Eck — CEO of VanEck Funds

Jennifer Grancio — Global Head of Distribution, TCW

Summary

CNBC's ETF Edge discusses how geopolitical headlines around Venezuela and Iran fit into the broader energy investing landscape. Jan Van Eck argues old oil and gas is range-bound while electricity demand from AI/hyperscalers makes nuclear and reliable power more attractive. Jennifer Grancio highlights the long power transition, active thematic ETFs like POWR and AIFD, and specific beneficiaries such as Vistra and Vertiv. The conversation also covers active vs. passive ETF selection, volatility in crypto-linked power exposure, and portfolio construction.

Geopolitical energy headlines are less important than structural power demand.
Old oil and gas faces headwinds from policy and ample supply, likely sideways.
AI/hyperscaler electricity demand requires quantity and high reliability.
Nuclear is favored for reliable, non-intermittent power.
Solar and wind are seen as unsuited for data-center reliability needs.
Active thematic ETFs are preferred for energy transition exposure.
Named beneficiaries include Vistra, Vertiv, and ETFs POWR, AIFD, NODE.
Investors are urged to manage thematic overlap, valuations, and volatility.

Ideas

Jan van Eck CEO of VanEck Funds 0:57

Old energy sideways; avoid oil and gas.

The core old-energy/oil and gas world is likely to stay sideways and is not exciting: the Trump administration wants more production and lower prices, creating a headwind for energy companies, and there is ample oil and gas supply. Venezuela is not the biggest macro event.

Jan van Eck CEO of VanEck Funds 2:11

Nuclear benefits from reliable data-center power demand.

Companies need to lean into electricity, not just energy, because hyperscaler/AI demand requires both more power and high industrial reliability. Data centers cannot go down, so reliability is underappreciated and benefits nuclear. VanEck's nuclear ETF has already seen performance/inflows and, after correcting from nosebleed levels entering Q4, is now more attractive.

Jennifer Grancio Global Head of Distribution, TCW 4:19

Broad power transition ETF with nuclear exposure.

The power transition is essential and long-duration; all energy sources are needed for data centers, manufacturing, and growth. TCW's broad, actively managed POWR ETF is positioned to hold old-economy companies plus nuclear and power-efficiency names, with active managers selecting winners as the theme evolves.

Jennifer Grancio Global Head of Distribution, TCW 4:43

Vistra gains from reliable nuclear power demand.

Vistra is a portfolio company that benefits from hyperscaler power demand; Meta is contracting with it over the next decade to add as much power as New York City uses. Nuclear/reliable power companies like Vistra are important because they provide regular power without the intermittency gaps of newer technologies.

Jennifer Grancio Global Head of Distribution, TCW 5:56

Broad AI ETF captures infrastructure and power.

For broad thematic exposure, an investor could take 10% out of large and midcap allocations and put it into TCW's power and AI ETFs (POWR and AIFD). This lets investors stay invested in the big themes while relying on active portfolio managers to manage risk, overlap, valuation, and fundamental analysis.

Jan van Eck CEO of VanEck Funds 7:40

NODE offers crypto-linked electricity transition exposure.

The energy ETFs VanEck likes in this space are actively managed. NODE, which has a crypto background, is now about half exposed to the electricity transition: roughly 30% bitcoin miners pivoting into AI transformation and hyperscaler deals, and 20% power producers like Vistra. This offers leveraged exposure but with high volatility and drawdown risk.

Jan van Eck CEO of VanEck Funds 8:29

Solar and wind unsuitable for hyperscaler reliability.

Hyperscalers need highly reliable, non-intermittent power for data centers, and solar and wind are not suited to that demand. This makes them less attractive within the power-demand theme relative to nuclear/reliable sources.

Jennifer Grancio Global Head of Distribution, TCW 10:52

Vertiv leads in data-center cooling efficiency.

Vertiv is a data-center cooling company that has moved up the cap table because it is one of the few providers capable of meeting the desperate need for greater data-center efficiency. She looks for companies that are one or two in their field or best at a technology.

ETF Edge: How investors are handling geopolitical uncertainty and energy pricing whiplash

Summary

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