MLPX vs. EMLP: Does Active Management in Energy Infrastructure Justify the Extra Fee Cost?
Written by Sara Appino for The Motley Fool -> Global X - MLP & Energy Infrastructure ETF offers a significantly lower expense ratio and a higher distribution yield than the First Trust North American Energy Infrastructure Fund. First Trust North American Energy Infrastructure F
Global X - MLP & Energy Infrastructure ETF offers a significantly lower expense ratio and a higher distribution yield than the First Trust North American Energy Infrastructure Fund.
First Trust North American Energy Infrastructure Fund provides broader sector diversification by splitting its portfolio between energy and utilities.
Global X - MLP & Energy Infrastructure ETF has delivered higher total returns over the last five years but experiences more significant peak-to-trough drawdowns.
Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) offers a lower-cost, high-yield path to energy infrastructure, while First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) provides an actively managed, diversified utility-heavy alternative.
Investors looking for exposure to the North American energy infrastructure sector generally weigh the merits of pure-play pipeline funds against more diversified portfolios. While both ETFs target companies that move and store fuel, their underlying investment strategies result in notably different risk-return profiles. This comparison evaluates how a passive, low-cost index tracker measures up against a more broadly diversified, actively managed fund that incorporates utility companies.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Global X fund is the more affordable choice, sporting an expense ratio of 0.45% compared to 0.95% for the First Trust fund. This cost advantage is paired with a higher distribution yield, as the Global X fund provided a 4.20% yield versus the 2.80% offered by its competitor as of June 3, 2026. For income-focused investors, this spread may represent a significant difference in annual cash flow.
The First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) is an actively managed fund with 65 holdings that incorporates an ESG screen into its selection process. Its sector allocation is split between energy at 48% and utilities at 47%, with a 4% weighting in industrials. Its largest positions include Energy Transfer (NYSE:ET) at 7.51%, Enterprise Products Partners (NYSE:EPD) at 7.24%, and MPLX LP (NYSE:MPLX) at 4.14%. It was launched in 2012 and has paid $1.20 per share over the trailing 12 months.
