The Alerian MLP ETF (NYSEMKT:AMLP) provides high dividend yields through a concentrated midstream portfolio, while the Global X – MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) offers lower costs and broader energy infrastructure exposure.
Energy infrastructure investments often focus on master limited partnerships (MLPs) that transport and store oil and gas
While AMLP concentrates specifically on these tax-advantaged structures, MLPX blends MLPs with general energy infrastructure corporations, resulting in distinct risk-reward profiles and tax considerations for income-seeking investors. Snapshot (cost & size) MLPX is the more affordable option, with an expense ratio of 0.45%, which is notably lower than AMLP’s 1.01%. However, AMLP offers a much higher payout with a 7.6% dividend yield.
Performance & risk comparison AMLP, launched in 2010, focuses almost exclusively on the energy sector at 98% with 2% in utilities. It maintains a concentrated portfolio of 14 holdings, and its largest positions include Plains All American Pipeline LP (NASDAQ:PAA) at 12.67%, Western Midstream Partners LP (NYSE:WES) at 12.55%, and Sunoco LP (NYSE:SUN) at 12.48%. The fund paid $4.02 per share over the trailing 12 months.