The decision between Global X MLP and Energy Infrastructure ETF (NYSEMKT:MLPX) and Alerian MLP ETF (NYSEMKT:AMLP) comes down to weighing a notably lower expense ratio and stronger past returns against a substantially higher current dividend yield.

Income-seeking investors in the energy space frequently look to midstream infrastructure firms that control the pipelines and storage assets moving North American energy. This review examines contrasts in efficiency, yield, and prior growth for these two well-known options. Each fund grants exposure to the sector, yet their designs and fees vary considerably for portfolio builders.

Snapshot (cost and size)

The Global X fund offers a lower-cost option at a 0.45 percent expense ratio, while AMLP carries a markedly higher 1.01 percent expense ratio. Income-oriented buyers may favor the Alerian MLP ETF for its 7.80 percent dividend yield versus 4.20 percent for MLPX.

Performance and risk comparison

MLPX posted a five-year growth of 1,000 dollars reaching 2,597 dollars in total return, outpacing AMLP at 2,111 dollars. Maximum drawdowns over five years were similar, with MLPX at negative 19.70 percent and AMLP at negative 20.90 percent.

What's inside

Alerian MLP ETF began in 2010 and follows the Alerian MLP Infrastructure Index. It runs a focused book of 14 holdings, led by Western Midstream Partners at 13.13 percent, Plains All American Pipeline at 12.44 percent, and Energy Transfer at 12.34 percent. The fund places 98 percent in energy and 2 percent in utilities, distributing 4.02 dollars per share over the past 12 months.

Global X MLP and Energy Infrastructure ETF started in 2013 and tracks the Solactive MLP and Energy Infrastructure Index. It holds 29 names for greater spread. Leading positions include TC Energy at 9.41 percent, Enbridge at 9.15 percent, and Williams Companies at 8.66 percent. The book sits 99 percent in energy infrastructure and paid 3.04 dollars per share over the trailing 12 months.

What this means for investors

Both vehicles target pipelines, storage terminals, and energy infrastructure that transport oil and gas nationwide. These operations produce reliable contract revenue largely independent of commodity swings. The key issue is how much of that revenue reaches investors after costs.

AMLP yield appears nearly double that of MLPX, which seems appealing at first glance. Yet AMLP levies more than twice the fee of MLPX, and over a decade or two that gap compounds meaningfully. MLPX has also generated superior historical total returns, indicating its lower cost base has benefited long-term holders.

A tax consideration also applies. MLPX caps direct MLP exposure to sidestep fund-level taxes. AMLP pure MLP setup lacks that efficiency.

For most long-term investors, MLPX lower costs, better returns, and tax advantages position it as the clearer selection. AMLP suits income-focused buyers seeking the highest immediate yield and willing to accept the added expense.