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.
Snapshot (cost & size)
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.
Performance & risk comparison
What’s inside
Global X-MLP & Energy Infrastructure ETF focuses exclusively on the energy sector, holding 29 positions primarily in midstream infrastructure companies that transport and store commodities. This infrastructure focus often results in different price behavior compared to the more volatile extraction markets. Its largest positions include TC Energy at 8.9%, Williams Cos. at 8.86%, and Enbridge at 8.62%. The Global X fund was launched in 2013. It has paid $3.07 per share over the trailing 12 months, which on its recent ~$75.4 share price works out to a 4.1% yield.
State Street SPDR S&P Oil & Gas Exploration & Production ETF targets the oil and gas exploration and production segment with 51 holdings, providing a broader diversification across 95% energy and 4% basic materials. By using a modified equal-weighted index, the fund ensures that mid- and small-cap companies have a meaningful impact on performance alongside industry giants. Its top holdings include PBF Energy Class A at 3.89%, HF Sinclair at 3.27%, and Delek US at 3.26%. The State Street fund was launched in 2006. It has paid $3.25 per share over the trailing 12 months, which on its recent ~$187.5 share price works out to a 1.7% yield.
