MLPX vs. EMLP: Does Active Management in Energy Infrastructure Justify the Extra Fee Cost?
Key Points
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.
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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.
Snapshot (cost & size)
| Metric | MLPX | EMLP |
|---|---|---|
| Issuer | Global X | First Trust |
| Expense ratio | 0.45% | 0.95% |
| 1-yr return (as of June 3, 2026) | 22.90% | 18.80% |
| Dividend yield | 4.20% | 2.80% |
| Beta | 0.58 | 0.56 |
| AUM | ~$3.5 billion | ~$4.0 billion |
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.
Performance & risk comparison
| Metric | MLPX | EMLP |
|---|---|---|
| Max drawdown (5 yr) | (19.70%) | (14.60%) |
| Growth of $1,000 over 5 years (total return) | $2,583.00 | $2,053.00 |
What's inside
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.
The Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) tracks the Solactive MLP & Energy Infrastructure Index and holds 29 securities. This fund is heavily concentrated in energy at 99%, with negligible exposure to utilities. Its top holdings include Enbridge (NYSE:ENB) at 9.29%, TC Energy Corp (NYSE:TRP) at 9.26%, and The Williams Companies (NYSE:WMB) at 8.51%. It was launched in 2013 and has a trailing-12-month dividend of $3.04 per share, though it does not utilize an ESG screen.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Energy infrastructure has been one of the quieter success stories of the past few years. Pipelines, storage terminals, and transmission networks generate steady, contract-based cash flows that hold up well regardless of where oil and gas prices move. This makes them attractive to income-focused investors who want energy exposure without the volatility of commodity prices themselves.
MLPX is the more passive and efficient of these two funds, tracking a broad index of energy infrastructure companies at a reasonable cost for the category. EMLP takes an active approach, blending traditional energy infrastructure with a substantial allocation to electric utilities, a combination that aims for smoother, more defensive returns. Unfortunately, it has historically underperformed its benchmark while charging more than twice what MLPX does.
That fee gap is the most important number in this comparison. Active management in a predictable, income-oriented category faces a high bar to justify its cost. MLPX's higher yield, lower fee, and straightforward passive approach have made it the more rewarding choice for long-term investors. EMLP appeals to those who want a more conservative blend of energy and utility income in a single actively managed fund.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners and Tc Energy. The Motley Fool has a disclosure policy.
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