Better Energy Sector ETF: Vanguard Energy ETF or First Trust Infrastructure Fund?
VDE captures broader energy markets with 37.7% 1-year returns, while EMLP prioritizes utilities and pipelines for higher income.
Overview
First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) offers diversified exposure to pipelines and utilities with higher yields, while Vanguard Energy ETF (NYSEMKT:VDE) provides low-cost, pure-play energy exposure.
Investors seeking energy exposure face a choice between broad sector tracking and targeted infrastructure. These two funds offer distinct paths: one focuses on the stable cash flows of utilities and midstream pipelines, while the other captures the wider domestic energy market from upstream producers to downstream refiners. This choice depends largely on an investor's appetite for volatility versus income. For investors looking to capitalize on energy prices or infrastructure stability, both funds provide liquid, established options.
Details
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.
Source
Originally published at www.fool.com.