AMLP vs ICLN: Are High Yield MLPs or Clean Energy Growth Stocks the Better Buy in 2026?

Alerian MLP ETF (NYSEMKT:AMLP) targets midstream energy infrastructure, while iShares Global Clean Energy ETF (NASDAQ:ICLN) provides a global portfolio focused on renewable power generation and technology.

Investors seeking energy exposure must choose between the fossil-fuel infrastructure of Master Limited Partnerships (MLPs) and the emerging renewable energy sector. This comparison looks at how these two distinct approaches to energy investing differ in cost, concentration, and income potential.

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 Alerian MLP ETF is more expensive, with an expense ratio of 1.01% versus 0.39% for the iShares fund. However, it offers a significantly higher trailing-12-month dividend yield of 7.7%.

Performance & risk comparison

What's inside

Alerian MLP ETF targets energy infrastructure MLPs that derive the majority of their cash flow from transporting and storing energy commodities. Its portfolio is concentrated in energy at 98% (2% in utilities) and holds 20 positions. Its largest positions include Sunoco LP (NYSE:SUN) at 13.6%, Energy Transfer LP (NYSE:ET) at 13.3%, and MPLX LP (NYSE:MPLX) at 13%. It was launched in 2010. Alerian MLP ETF has paid $4.02 per share over the trailing 12 months, which on its recent ~$52.1 share price works out to a 7.7% yield.

The iShares Global Clean Energy ETF tracks an index of international companies focused on renewable energy, utilizing an ESG screen to select its 100 holdings across technology (33.8%), utilities (33.4%), and industrials (31.3%). Top holdings include Bloom Energy Corp (NYSE:BE) at 14.8%, First Solar Inc (NASDAQ:FSLR) at 8.4%, and Nextpower Inc (NASDAQ:NXT) at 7.2%. It was launched in 2008. iShares Global Clean Energy ETF has paid $0.18 per share over the trailing 12 months, which on its recent ~$19.25 share price works out to a 0.94% yield.

Which fund is the better buy?

The Alerian MLP ETF, AMLP, comes with a much higher expense ratio than its iShares competitor, but there’s a reason for that. MLPs — master limited partnerships — are a common structure for midstream oil and gas businesses. The structure means that MLPs don’t pay taxes, instead handing the tax bill to investors who receive distributions. Investing directly means handling K-1 forms for each MLP, which is a time-consuming and sometimes confusing tax-time hassle.

This ETF simplifies investing in MLPs by handling the accounting and sending shareholders a single 1099 for tax filing. It’s simpler for sure. The high expense ratio includes an allowance for the ETF’s estimated tax liability, which it will incur in the future because it will not pass along the full tax liability to ETF holders. That expense is currently 0.17% of the fund’s 1.01% expense ratio, but that is likely to grow over time as the fund collects more distributions and tax liability.

ICLN, the renewable energy fund, is more diverse, with 100 holdings and 54% of its assets in its top 10 holdings. ICLN is 34% in large caps, 45% in mid caps, and 21% in small caps. The portfolio’s holdings are 42% growth stocks, while 47% of the portfolio’s stocks are U.S. businesses. By contrast, the Alerian fund is 65% mid caps and 35% small caps and overwhelmingly value stocks.

Performance is where ICLN stands out: the fund has beaten AMLP handily over the past three months, year-to-date, and 1-year periods. Long-term, ICLN has returned 5.3%, -1.3%, and 10.7% in the 3-, 5-, and 10-year look-backs, reflecting the volatility that comes with renewable stocks due to tax policy and interest rate sensitivity. AMLP does beat ICLN in the 3-year (18.9%) and 5-year (16.3%) returns as a result of those lumpy returns for ICLN.

The renewable energy ETF ICLN’s better long-term performance and the growth outlook for clean energy make ICLN the better buy, but investors who place greater importance on income and less volatility would do well to choose AMLP.

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

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