Which Energy ETF Is the Better Buy: Global X's MLPX or iShares' Clean Energy Fund ICLN?

Investors choosing between Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) and iShares Global Clean Energy ETF (NASDAQ:ICLN) must balance high-yield, concentrated energy infrastructure against a diversified, global portfolio of sustainable power producers.

Energy investing has evolved far beyond traditional oil and gas. Today, investors can choose between the established infrastructure that moves fossil fuels and the emerging technologies powering the transition to renewables. Both MLPX and ICLN provide targeted exposure, but their differing strategies lead to very different performance and income outcomes. This comparison explores how these differing objectives influence their asset concentration, volatility, and historical returns.

Snapshot (cost & size)

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 iShares fund is the more affordable choice with a 0.39% expense ratio, which is 0.06 percentage points lower than its competitor. However, income-focused investors may find the 4.10% yield of the Global X fund more compelling than the 1.30% yield offered by ICLN, as MLPX focuses on cash-flow-rich midstream assets.

Performance & risk comparison

What's inside

Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) concentrates heavily on traditional energy infrastructure, with 99% of its portfolio allocated to the energy sector. It holds 29 companies, and its largest positions include TC Energy (NYSE:TRP) at 9.31%, Enbridge (NYSE:ENB) at 9.19%, and Williams Companies (NYSE:WMB) at 8.48%. This fund, which was launched in 2013, has paid $3.04 per share over the trailing 12 months. MLPX seeks to replicate the performance of the Solactive MLP & Energy Infrastructure Index, focusing on Master Limited Partnerships (MLPs) and other infrastructure companies without the tax complexity of direct MLP ownership.

The iShares Global Clean Energy ETF (NASDAQ:ICLN) provides broader exposure with 106 holdings across utilities (37%), industrials (25%), and energy (25%). Its largest positions include Bloom Energy (NYSE:BE) at 12.38%, First Solar (NASDAQ:FSLR) at 9.29%, and Nextpower (NASDAQ:NXT) at 7.31%. This fund was launched in 2008, uses an Environmental, Social, and Governance (ESG) screen, and has paid $0.27 per share over the trailing 12 months. The fund provides a global approach, capturing international companies that produce energy from solar, wind, and other sustainable sources.

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What this means for investors

These two funds sit at opposite ends of the energy spectrum: One is rooted in the fossil fuel infrastructure that powers today's economy, and the other is betting on the clean energy systems that may power tomorrow's. That philosophical divide shapes everything about how they behave, including the striking gap in their dividend yields.

MLPX's pipelines and energy infrastructure companies generate steady, contract-based cash flows regardless of commodity prices, and they pass a meaningful portion of that income directly to investors. That is what produces MLPX's significantly higher yield. ICLN's clean energy companies are in a more capital-intensive phase of growth, reinvesting most of their earnings rather than paying them out, making ICLN's yield a fraction of MLPX's.

ICLN has staged a dramatic comeback after brutal losses from 2021 through 2024. Whether that momentum continues depends heavily on policy support and the pace of the global energy transition, factors that are genuinely difficult to predict. MLPX's income stream is far more predictable, tied to infrastructure that will likely remain essential regardless of which energy sources eventually dominate.

For most long-term investors, that predictability is the stronger foundation. ICLN is worth considering as a smaller, higher-risk allocation for investors who believe the clean energy transition is accelerating and are comfortable with the volatility that comes with it.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Enbridge, First Solar, and Nextpower. The Motley Fool recommends Tc Energy. The Motley Fool has a disclosure policy.