Which Energy ETF Is the Better Buy: State Street's XLE or First Trust's EMLP?
XLE's 0.08% expense ratio crushes EMLP's 0.95% fee, but EMLP offers utility-heavy diversification with lower volatility.
Overview
The State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) offers low-cost, pure energy exposure, whereas the First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) provides a utility-heavy infrastructure play with higher fees.
Both funds provide access to North American energy assets, but they approach the space with distinct strategies. While XLE tracks the energy components of the S&P 500 to capture major oil and gas producers, EMLP targets infrastructure and utilities, including master limited partnerships and renewable energy production.
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.