Oil's Slump Spells Opportunity: Why TPYP's Struggles Signal a Shift to Resilient Sectors

The global energy market is in a slump, with crude oil prices hovering near $59 per barrel—a stark contrast to earlier 2025 highs—and TPYP, an energy-focused investment vehicle, has paid the price. As oil prices languish due to oversupply and demand headwinds, TPYP's underperformance highlights a critical truth: energy exposure is a liability in this environment. But fear not: resilient sectors like aerospace/defense and AI-driven tech are thriving, offering superior yield and growth potential. Here's why investors should pivot now.

Why TPYP is Struggling—and Why It'll Stay That Way

TPYP's lackluster performance stems from its reliance on energy markets and limited exposure to stable, high-yield sectors. The fund's sensitivity to oil prices is exacerbated by its minimal holdings in master limited partnerships (MLPs), which typically offer steady dividends. Meanwhile, oil's prolonged slump—down 17% since early 2025—has dented the fund's returns.

The data shows TPYP's decline mirrors oil's trajectory, leaving investors scrambling for alternatives. Worse still, OPEC+'s recent production hikes and U.S. shale resilience suggest prices may stay depressed through mid-2026, prolonging TPYP's pain.

The Resilient Sectors: Where Yield and Growth Thrive

While energy sputters, sectors insulated from commodity cycles are shining.

1. Aerospace & Defense (DFEN): A Bulwark Against Uncertainty

The Global X Defense ETF (DFEN) has surged 18% year-to-date, benefiting from geopolitical tensions and robust defense budgets. With global military spending projected to hit $2.3 trillion by 2027, DFEN's portfolio of firms like Raytheon and Lockheed Martin offers both dividends and growth.

DFEN's 2.1% dividend yield and low correlation to energy markets make it a standout pick for yield seekers avoiding oil's volatility.

2. AI-Driven Tech (NVDA): The Future is Now

NVIDIA (NVDA) has become the poster child for AI's transformative power. Its 40% YTD gain reflects soaring demand for its GPUs in data centers and autonomous systems. With AI adoption accelerating in healthcare, finance, and manufacturing, NVDA's growth trajectory is unshackled from oil's woes.

NVDA's 0.5% dividend may seem small, but its 30%+ annual earnings growth and $120 billion AI market opportunity make it a must-have for tech-centric portfolios.

Tactical Shifts for Yield Hunters: ETFs and Dividend Stalwarts

For those chasing income, two plays dominate:

1. Leveraged ETFs for Amplified Gains
2. Consider URE (iShares U.S. Real Estate ETF), which offers a 3.5% yield backed by steady rental income.

3. SDIV (SPDR S&P Dividend ETF) holds 200+ firms with 25+ years of dividend growth, yielding 2.8%.

4. Dividend Powerhouses in Resilient Sectors

5. KMI (Kinder Morgan): A pipeline giant with a fortress balance sheet and a 6.5% yield.
6. T (AT&T): Telecom's stability delivers a 5.2% dividend, unlinked to oil prices.

Conclusion: Exit Energy, Embrace the Future

TPYP's underperformance is a warning: energy's woes aren't ending soon. By rotating into sectors like defense, tech, and dividends, investors can sidestep oil's volatility while capturing superior returns. The data is clear—act now before the shift leaves you stranded.

The numbers don't lie: it's time to pivot.

Investment decisions should align with individual risk tolerance. Past performance does not guarantee future results.