In a significant development for the artificial intelligence (AI)-led power revolution, Bloom Energy (BE Quick QuoteBE - Free Report) has been officially named to join the benchmark S&P 500 index, a change that will take effect prior to the market open on Sept. 21, 2026. Following the announcement, Bloom Energy's stock rallied sharply at the bourses, as high as 9.6% on Sept. 8. 

This milestone achievement also places a bright spotlight on exchange-traded funds (ETFs) that offer exposure to this fuel cell giant, with these funds now poised to benefit from the heightened institutional demand and rebalancing flows that typically accompany an index inclusion of this magnitude.

To understand why this event is so pivotal for ETF investors, one must first look at the extraordinary fundamentals that propelled Bloom Energy into the large-cap league, and why a diversified ETF approach might be the most prudent strategy for navigating its high-growth trajectory.

What Fueled Bloom Energy’s S&P 500 Ascent?

Bloom Energy's meteoric rise to the S&P 500 is a testament to its strategic positioning at the intersection of the AI boom and America’s strained power grid. The company has become a direct play on the insatiable energy demands of AI data centers, offering solid-oxide fuel cells as a quicker, on-site power solution that bypasses the years-long wait for traditional grid connections.

The company's recent financial performance has been nothing short of spectacular, which in turn helped its promotion to the prestigious S&P 500 index. 

Evidently, BE reported record revenues of $1.07 billion in the second quarter of 2026 and registered a staggering 166% year-over-year increase, driven by a 215% surge in product revenues.

The primary catalyst accelerating Bloom’s top-line growth is the skyrocketing power demand from AI data centers. As regional electrical grids face severe capacity constraints, major hyperscalers and utility operators are increasingly turning to Bloom Energy’s solid-oxide fuel cell systems for rapid, on-site, off-grid power generation.

Will Bloom Energy Maintain Its Momentum?

Bloom Energy's growth trajectory remains strongly supported by fundamental catalysts. The short-term price target for BE, offered by 22 analysts, stands at $274.86, pointing to a potential upside of approximately 8.70% from its current trading level. 

This momentum is further bolstered by Bloom Energy’s management raising its full-year 2026 revenue guidance to a range of $3.9 billion to $4.2 billion, reflecting a 100% year-over-year growth rate at the midpoint. Driving this outlook are transformative commercial milestones, including a landmark partnership with Oracle to deliver up to 2.8 gigawatts of fuel cell capacity, alongside a fivefold expansion of its funding framework with Brookfield Asset Management to $25 billion.

Provided these initiatives are successfully executed, the robust demand for rapid, on-site energy solutions should help keep Bloom Energy's long-term stock performance buoyant.

The Case for ETF-Based Exposure

Despite BE's bright operational outlook, direct stock ownership exposes investors to elevated valuation risks. 

The share price's recent surge of almost 10% indicates that market participants have already priced in much of the optimism surrounding its S&P 500 inclusion. 

Further, Bloom Energy trades at a price-to-earnings ratio of 67.99—a steep premium compared to the S&P 500 average of 20.09—while also facing broader sector risks like industry-wide supply chain bottlenecks. 

In this environment, investing through an exchange-traded fund offers a more prudent strategy. An ETF will allow investors to capture Bloom Energy's index-inclusion tailwinds and high-growth trajectory while spreading downside risk across complementary holdings in the clean technology, grid infrastructure, and industrial sectors.

ETFs in the Spotlight

Taking into consideration the aforementioned discussion, investors looking to gain exposure to Bloom Energy through a safer, diversified approach may add the following ETFs to their watchlist and invest in them if it seems fit:

Global X Hydrogen ETF (HYDR Quick QuoteHYDR - Free Report)

This fund, with net assets worth $110.3 million, offers exposure to 25 companies involved in hydrogen production, the integration of hydrogen into energy systems and the development/manufacturing of hydrogen fuel cells, electrolyzers, and other technologies related to the utilization of hydrogen as an energy source. Of these, Bloom Energy holds the first spot with 17.21% weightage. 

HYDR has surged 45.6% year to date and charges 50 basis points (bps) in fees. It traded at a volume of 0.04 million shares in the last trading session. 

iShares Global Clean Energy ETF (ICLN Quick QuoteICLN - Free Report)

This fund, with net assets worth $2.10 billion, offers exposure to 105 global companies involved in clean energy. Of these, Bloom Energy holds the first spot with an 8.51% weight. 

ICLN has risen 11.4% year to date and charges 38 bps in fees. It traded at a good volume of 11.18 million shares in the last trading session. 

Global X U.S. Electrification ETF (ZAP Quick QuoteZAP - Free Report)

This fund, with net assets worth $471.2 million, offers exposure to 45 companies that are involved in conventional electricity generation, transmission, and distribution; alternative electricity generation and technology solutions; and the modernization, development, manufacturing, or implementation of grid infrastructure and smart grid technology. Of these, Bloom Energy holds the first spot with 5.53% weightage. 

ZAP has rallied 11.4% year to date and charges 50 bps in fees. It traded at a volume of 0.14 million shares in the last trading session.