Comparing Vanguard Energy ETF (NYSEMKT:VDE) and Alerian MLP ETF (NYSEMKT:AMLP) reveals a trade-off between the high-income, midstream focus of the Alerian fund and the low-cost, broad-market energy approach of the Vanguard fund.
Energy sector investing offers multiple pathways, from high-yielding pipelines to broad oil and gas giants
While both the Vanguard fund and the Alerian fund target the energy sector, they provide vastly different exposures. This comparison analyzes how their costs, yields, and portfolios could impact a long-term investment strategy. 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 as of June 30. The cost difference is stark: the Vanguard fund charges a slim 0.09% expense ratio, while the Alerian fund charges 1.01%.