Which Is the Better Energy Sector ETF, VanEck's Nuclear-Focused NLR or First Trust's EMLP Targeting Energy Infrastructure?
Key Points
The First Trust North American Energy Infrastructure Fund carries a significantly higher expense ratio of 0.95% compared to the 0.52% fee for the VanEck Uranium and Nuclear ETF.
The VanEck Uranium and Nuclear ETF has delivered higher total returns over the last five years, though the First Trust North American Energy Infrastructure Fund showed much lower price volatility.
While both funds target energy, VanEck Uranium and Nuclear ETF focuses on the nuclear fuel cycle while First Trust North American Energy Infrastructure Fund emphasizes pipelines and utilities.
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The First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) provides exposure to energy midstream and utilities, while the VanEck Uranium and Nuclear ETF (NYSEMKT:NLR) targets the nuclear power ecosystem and uranium miners.
These two funds offer distinct pathways into the energy sector for income-oriented investors looking beyond traditional oil and gas producers. While the VanEck ETF concentrates on the specialized nuclear energy niche and uranium miners, the First Trust fund takes a broader infrastructure approach, focusing on the pipelines and utilities that move and distribute energy across North America.
Snapshot (cost & size)
| Metric | NLR | EMLP |
|---|---|---|
| Issuer | VanEck | First Trust |
| Share price | $116.99 (as of 2026-08-10) | $43.52 (as of 2026-08-10) |
| Expense ratio | 0.52% | 0.95% |
| 1-yr return (as of 2026-08-10) | 1.6% | 18.0% |
| Dividend yield | 2.7% | 2.8% |
| Beta | 0.86 | 0.56 |
| AUM | $4.2 billion | $4.1 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The VanEck Uranium and Nuclear ETF is the more affordable option with an expense ratio of 0.52%. The First Trust North American Energy Infrastructure Fund offers a slightly higher payout, though the 0.11 percentage point yield gap between them is narrow.
Performance & risk comparison
| Metric | NLR | EMLP |
|---|---|---|
| Max drawdown (5 yr) | (37.5%) | (14.6%) |
| Growth of $1,000 over 5 years (total return) | $2,480 | $2,097 |
What's inside
The First Trust North American Energy Infrastructure Fund holds 65 positions, primarily concentrated in energy (48%) and utilities (46%). Its largest positions include Enterprise Products Partners (NYSE:EPD) at 8.82% and Energy Transfer (NYSE:ET) at 7.72%. The fund incorporates an Environmental, Social, and Governance (ESG) screen into its selection process to filter its universe of North American infrastructure companies. It launched in 2012. The First Trust North American Energy Infrastructure Fund has paid $1.21 per share over the trailing 12 months, which on its recent ~$43.52 share price works out to a 2.8% yield.
The VanEck Uranium and Nuclear ETF tracks the MVIS Global Uranium & Nuclear Energy Index and maintains a more concentrated portfolio of 29 holdings. It is heavily weighted toward energy (51%), utilities (35%), and industrials (13%). Top holdings include Constellation Energy (NASDAQ:CEG) at 8.67%, Cameco (NYSE:CCJ) at 7.95%, and Public Service Enterprise Group (NYSE:PEG) at 6.45%. This focus on the nuclear power ecosystem includes uranium miners as well as traditional utility generators. The fund launched in 2007. The VanEck Uranium and Nuclear ETF has paid $3.17 per share over the trailing 12 months, which on its recent ~$116.99 share price works out to a 2.7% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Investing in the energy sector makes a lot of sense these days. The rise of artificial intelligence has led to growing demand for electricity to power the army of computers needed for AI. The First Trust North American Energy Infrastructure Fund (EMLP) and VanEck Uranium and Nuclear ETF (NLR) offer two different ways to capitalize on this trend. Which to invest in depends on how you want to play the energy industry’s growth.
NLR is for those who want to invest in nuclear power, which has high growth potential as companies seek to transition away from fossil fuels to clean energy. This fund offers a solid dividend and a lower expense ratio, a combination that helps to keep more money in your pocket. However, NLR experiences higher volatility than EMLP, as demonstrated by its larger beta and five-year max drawdown.
EMLP’s focus on traditional energy infrastructure, such as natural gas pipelines and electric power transmission, give it greater stability and make it a compelling fund for conservative investors. It targets slower-growth industries compared to the rising nuclear sector, so its return over five years is lower than NLR’s. Its strengths include being an actively-managed fund, which explains its higher expense ratio, and the tax advantages that come with master limited partnerships (MLPs).
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cameco and Constellation Energy. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
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