Energy ETFs VDE and EMLP Differ on Cost and Approach
Key Points
Vanguard Energy ETF offers a significantly lower expense ratio than First Trust North American Energy Infrastructure Fund
Vanguard Energy ETF has outperformed on a 1-year total return basis but has experienced a deeper historical maximum drawdown
First Trust North American Energy Infrastructure Fund provides heavier exposure to utilities while Vanguard Energy ETF is almost entirely concentrated in the energy sector
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Vanguard Energy ETF (NYSEMKT:VDE) provides low-cost, broad exposure to traditional oil and gas companies, whereas First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) focuses on income-oriented utilities and pipelines.
Investors seeking exposure to the North American energy landscape often choose between pure-play energy stocks and infrastructure-heavy models. Both funds offer ways to play the sector's recovery and cash flows, but they differ sharply in cost, sector concentration, and risk profiles as of June 29, 2026.
Snapshot (cost & size)
| Metric | EMLP | VDE |
|---|---|---|
| Issuer | First Trust | Vanguard |
| Share price | $44.03 (as of 2026-06-26) | $152.07 (as of 2026-06-26) |
| Expense ratio | 0.95% | 0.09% |
| 1-yr return (as of June 26, 2026) | 21.4% | 30.0% |
| Dividend yield | 2.7% | 2.6% |
| Beta | 0.56 | 0.42 |
| AUM | $4.1B | $9.4B |
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.
VDE is significantly more affordable than EMLP, with an expense ratio of 0.09% compared to the 0.95% charged by the First Trust fund. While the costs differ, the income potential is comparable, as EMLP recently offered a slightly higher trailing yield.
Performance & risk comparison
| Metric | EMLP | VDE |
|---|---|---|
| Max drawdown (5 yr) | (14.6%) | (26.6%) |
| Growth of $1,000 over 5 years (total return) | $2,122 | $2,327 |
What's inside
The Vanguard Energy ETF (NYSEMKT:VDE) provides concentrated exposure to the U.S. energy sector, with approximately 99% of its portfolio allocated to energy stocks and 0% in basic materials. Its largest positions include Exxon Mobil Corp (NYSE:XOM) at 21.98%, Chevron Corp (NYSE:CVX) at 14.21%, and ConocoPhillips (NYSE:COP) at 5.78% out of 112 total holdings. The fund was launched in 2004.
The First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) holds 65 positions, with its heaviest allocations in utilities at 54% and energy at 27%. Top holdings include Energy Transfer LP (NYSE:ET) at 7.22% and Enterprise Products Partners LP (NYSE:EPD) at 6.88%. The fund utilizes an ESG screen and was launched in 2012.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Vanguard Energy ETF (VDE) and the First Trust North American Energy Infrastructure Fund (EMLP) are both energy exchange-traded funds (ETFs), although they serve different purposes. Investors seeking an energy-focused ETF would be wise to understand the difference between these two ETFs. Here’s how they compare.
First, VDE is a traditional, passively managed energy ETF. Its top holdings include the so-called “energy majors,” such as ExxonMobil, Chevron, and ConocoPhillips. These companies are vertically integrated, meaning they are involved in every aspect of the energy discovery and delivery process — from searching for oil and gas to recovering it from the earth, transporting it, refining it, and selling it to consumers. Therefore, VDE is best for investors seeking exposure to the entire energy ecosystem.
EMLP, on the other hand, is an actively-managed fund that focuses on companies that generate at least half of their revenue from the operation of energy infrastructure — such as pipelines, storage tanks, and power transmission. As such, EMLP carries higher costs. Its expense ratio of 0.95 is significantly higher than VDE’s 0.09%.
As for performance, the two funds have generated similar total returns over the last decade. VDE has generated a total return of 133%, equating to a compound annual growth rate (CAGR) of 8.8%. EMLP, meanwhile, has logged a total return of 165%, with a CAGR of 10.3%. However, both funds have substantially underperformed the S&P 500 index over this same period, generating total returns of 322% and a CAGR of 15.5%.
In summary, VDE may be favored by investors seeking traditional energy sector exposure at a reasonable cost. Yet, other investors, particularly those willing to pay a higher share in fees, may favor EMLP due to its track record of delivering higher returns.
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Jake Lerch has positions in Enterprise Products Partners and ExxonMobil and has the following options: long July 2026 $170 puts on Chevron, long July 2026 $185 puts on Chevron, short July 2026 $175 puts on Chevron, and short July 2026 $180 puts on Chevron. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends ConocoPhillips and Enterprise Products Partners. The Motley Fool has a disclosure policy.
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