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The Global X-MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) targets midstream infrastructure and higher yields, while the State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) offers broader exposure to upstream energy production.
Energy investors often navigate the trade-off between the volatile extraction business and the steadier transport business. These two funds represent distinct strategies within the energy sector: one focuses on the companies pulling oil and gas from the ground, while the other targets the pipes and infrastructure moving energy to market. This analysis breaks down the differences in cost, yield, and portfolio concentration to help determine which approach may better suit a specific portfolio.
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street SPDR S&P Oil & Gas Exploration & Production ETF is the more affordable option with a 0.35% expense ratio. However, investors seeking income may find the Global X-MLP & Energy Infrastructure ETF more attractive due to its higher payout.