Which Is the Better Energy ETF, State Street's XLE or Global X's MLPX?
Key Points
The State Street Energy Select Sector SPDR ETF provides highly liquid exposure to S&P 500 energy giants with a low 0.08% expense ratio.
The Global X - MLP & Energy Infrastructure ETF offers a higher trailing dividend yield of 4% by targeting midstream companies and infrastructure.
The State Street Energy Select Sector SPDR ETF has outperformed on a one-year total return basis but experienced a deeper max drawdown over the last five years.
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The State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) and Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) are popular choices for energy sector exposure, but they offer distinct investment strategies. While XLE focuses on large-cap energy companies within the S&P 500, MLPX provides a targeted play on energy infrastructure and master limited partnerships (MLPs). This match-up explores how their different compositions impact cost, income, and overall performance.
Snapshot (cost & size)
| Metric | MLPX | XLE |
|---|---|---|
| Issuer | Global X | State Street |
| Share price | $75.51 (as of 2026-07-15) | $56.50 (as of 2026-07-15) |
| Expense ratio | 0.45% | 0.08% |
| 1-yr return (as of July 15, 2026) | 29.10% | 34.10% |
| Dividend yield | 4.00% | 2.80% |
| Beta | 0.58 | 0.43 |
| AUM | $3.6B | $37.5B |
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.
Choosing between these funds often comes down to balancing management fees against income potential. XLE is highly cost-effective with an expense ratio of 0.08%, while MLPX is significantly more expensive at 0.45%. However, MLPX provides a considerably higher trailing dividend yield, which may appeal to those prioritizing cash flow over fee minimization.
Performance & risk comparison
| Metric | MLPX | XLE |
|---|---|---|
| Max drawdown (5 yr) | (19.70%) | (26.00%) |
| Growth of $1,000 over 5 years (total return) | $2,840 | $2,785 |
What's inside
The State Street Energy Select Sector SPDR ETF consists of 21 holdings and is entirely concentrated in the energy sector. Its largest positions include Exxon Mobil (NYSE:XOM) at 20.10%, Chevron (NYSE:CVX) at 14.74%, and ConocoPhillips (NYSE:COP) at 5.90%. The fund was launched in 1998. The State Street Energy Select Sector SPDR ETF has paid $1.52 per share over the trailing 12 months, which on its recent ~$56.50 share price works out to a 2.80% yield.
The Global X - MLP & Energy Infrastructure ETF holds 29 securities, with 99% of the portfolio in energy and the remainder in utilities. Its largest positions include TC Energy (NYSE:TRP) at 9.15%, Enbridge (NYSE:ENB) at 9.02%, and The Williams Companies (NYSE:WMB) at 8.64%. The fund was launched in 2013. The Global X - MLP & Energy Infrastructure ETF has paid $3.04 per share over the trailing 12 months, which on its recent ~$75.51 share price works out to a 4% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The State Street Energy Select Sector SPDR ETF (XLE) and Global X - MLP & Energy Infrastructure ETF (MLPX) provide efficient ways to invest in the energy industry. Choosing between the two depends on which better meets your investment goals.
XLE holds some of the biggest names in the sector since it targets energy companies within the S&P 500. If you seek large-cap oil and gas businesses, this is the better fund over MLPX. Its other advantages include a low expense ratio and high AUM, which gives it superior liquidity, an attractive attribute for active traders.
Income-oriented investors may prefer MLPX for its larger dividend yield. In addition, the ETF avoids fund-level taxes by limiting direct MLP exposure and investing in similar entities instead. Its holdings focus on midstream infrastructure players, such as pipelines and storage facilities. This shields MLPX from some of the sector volatility associated with the price of the commodity, as demonstrated by its lower five-year max drawdown, making it a good fund for conservative investors.
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Robert Izquierdo has no position in any of the stocks mentioned. 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.
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