Which Is the Better Energy ETF, State Street's XLE or Global X's MLPX?
XLE offers ultra-low fees and stronger one-year returns, while MLPX targets infrastructure partnerships with a 4% dividend yield.
Overview
The State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) and Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) are popular choices for energy sector exposure, but they offer distinct investment strategies. While XLE focuses on large-cap energy companies within the S&P 500, MLPX provides a targeted play on energy infrastructure and master limited partnerships (MLPs). This match-up explores how their different compositions impact cost, income, and overall performance.
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.
Details
Choosing between these funds often comes down to balancing management fees against income potential. XLE is highly cost-effective with an expense ratio of 0.08%, while MLPX is significantly more expensive at 0.45%. However, MLPX provides a considerably higher trailing dividend yield, which may appeal to those prioritizing cash flow over fee minimization.
Source
Originally published at www.fool.com.