Vanguard Energy vs Global X MLP & Energy Infrastructure: Which ETF Is Delivering Profits From Rising Energy Costs?

Energy prices are much higher in 2026. That’s good news for some investors. The Vanguard Energy ETF (NYSEMKT:VDE) and Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) offer different ways to play the energy cycle, with VDE tracking diversified giants and MLPX focusing on midstream assets.

Both funds capitalize on recent energy sector momentum but approach the industry from different angles. This analysis compares the broad, equity-focused strategy of the Vanguard fund against the infrastructure-centric portfolio of the Global X fund to help you determine which fits your investment goals.

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.

With an expense ratio of 0.09%, Vanguard Energy ETF is more affordable than Global X - MLP & Energy Infrastructure ETF, which charges 0.45%. However, the Global X fund offers a higher dividend payout.

Performance & risk comparison

What's inside

Vanguard Energy ETF focuses on the broad U.S. energy sector, including oil, gas, and consumable fuels, with approximately 99.5% energy exposure. Its largest positions include ExxonMobil Corp (NYSE:XOM) at 21.7%, Chevron Corp (NYSE:CVX) at 14.1%, and ConocoPhillips (NYSE:COP) at 5.8%. The fund maintains 111 holdings in total. It was launched in 2004. Vanguard Energy ETF has paid $4.03 per share over the trailing 12 months, which on its recent ~$156.94 share price works out to a 2.70% yield.

Global X - MLP & Energy Infrastructure ETF targets midstream infrastructure, specifically master limited partnerships and corporations, with 99% energy exposure. Its largest holdings include TC Energy (NYSE:TRP) at 9.1%, Enbridge (NYSE:ENB) at 8.9%, and The Williams Companies (NYSE:WMB) at 8.9%. The fund consists of 29 holdings. It was launched in 2013. Global X - MLP & Energy Infrastructure ETF has paid $3.04 per share over the trailing 12 months, which on its recent ~$75.66 share price works out to a 4.00% yield.

Which fund is the better buy?

The Global X - MLP & Energy Infrastructure ETF — MLPX — focuses on the midstream portion of the energy business. Midstream businesses like pipelines tend to be less volatile because they are the least exposed to energy price fluctuations. Unlike traditional MLP funds, MLPX avoids fund-level taxes by limiting direct MLP exposure and investing in similar entities, such as the general partners of MLPs and other energy infrastructure corporations. That’s a plus for investors, since funds that hold MLPs can incur additional taxes for investors, even if they are simpler than directly investing in MLP stocks.

The Vanguard Energy ETF — VDE — invests in straightforward equities rather than MLPs, so it accesses a different segment of the energy business, primarily producers and retailers.

The Vanguard fund has had a better 52-week performance, reflecting the greater volatility in oil and gas producers and retailers, who respond much more readily to commodity price changes. Midstream energy businesses are more insulated from oil and gas price shocks because the fuels need to be transported regardless of price. But over time, the Global X fund shows its chops. MLPX has returned 27.1%, 21.2%, and 12% over the 3-year, 5-year, and 10-year periods. VDE has returned 13.4%, 18.7%, and 8.4% over the 3-, 5-, and 10-year lookbacks, respectively.

While MLPX has a higher expense ratio, its long-term performance is superior to VDE’s. For those looking to capitalize on higher energy prices in 2026, MLPX is the ETF to buy.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has positions in the Vanguard World Fund - Vanguard Energy ETF. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends ConocoPhillips and TC Energy. The Motley Fool has a disclosure policy.