Investors in energy infrastructure ETFs may be drawn to funds with larger asset bases, but it’s important to also consider other factors such as cost and returns.
The Global X MLP & Energy Infrastructure ETF (MLPX ) and the Alerian Energy Infrastructure ETF (ENFR ) are RIC-compliant energy infrastructure ETFs. ENFR has received fewer assets than MLPX; however, it offers an edge when looking at past performance and ownership cost.
Global X’s energy infrastructure ETF tracks the Solactive MLP & Energy Infrastructure Index, while ENFR tracks the Alerian Midstream Energy Select Index. Both funds provide exposure to MLPs and U.S. and Canadian corporations engaged in the transportation, storage, and processing of energy commodities.
Differences Between the 2 Energy Infrastructure ETFs
MLPX is the larger of the two ETFs by assets under management, with $1.8 billion compared to ENFR’s $174 million.
ENFR comes out ahead when comparing cost of ownership, however. ENFR is the lowest-cost ETF in the energy infrastructure category, charging just 35 basis points. To compare, MLPX charges 45 basis points.
Looking at performance, ENFR is outpacing MLPX year to date through Sept. 4. ENFR is up 25.4% during the period, while MLPX has climbed 24.2% on a total-return basis.
Finally, income is a primary reason many investors add exposure to energy infrastructure ETFs. When considering trailing 12-month dividend yield, ENFR comes out slightly above. It is yielding 4.85% and MLPX is yielding 4.69% as of Sept. 4.
ENFR’s history of providing attractive returns and dividends, considered alongside the fund’s low cost, makes a compelling case for the ETF.
See more: AMLP and MLPA: Which MLP ETF Is Right for Your Portfolio?
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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