State Street’s XLE offers lower costs and pure energy exposure, while First Trust’s EMLP focuses on infrastructure with higher fees.
State Street’s Energy Select Sector SPDR ETF (XLE) undercuts First Trust’s North American Energy Infrastructure Fund (EMLP) with a 0.08% expense ratio versus EMLP’s 0.95%. The 0.87 percentage point gap poses a long-term cost hurdle for EMLP investors despite similar trailing-12-month yields.
XLE tracks S&P 500 energy stocks, holding 21 securities led by ExxonMobil (20.19%) and Chevron (14.85%). EMLP targets infrastructure and utilities, including MLPs and renewables, diversifying beyond traditional energy producers. XLE’s $1.52 per-share dividend on a $57.02 price yields 2.60%.
Both funds provide North American energy exposure but cater to different investor preferences: low-cost sector focus versus higher-fee infrastructure diversification.