Alerian MLP ETF vs First Trust Energy Infrastructure Fund: Which Energy ETF is the Better Buy in 2026?

Brendan Coffey, The Motley Fool

Sat, August 8, 2026 astatine 11:51 AM CDT 5 min read

Alerian MLP ETF (NYSEMKT:AMLP) offers a overmuch higher dividend output and dense attraction successful vigor MLPs, portion First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) provides broader diversification crossed utilities and little full volatility.

Choosing betwixt Alerian MLP ETF and First Trust North American Energy Infrastructure Fund involves weighing precocious income from concentrated MLPs against broader inferior diversification. While some funds people North American vigor infrastructure, their portfolio structures and output profiles disagree significantly. Alerian MLP ETF focuses strictly connected maestro constricted partnerships, portion the First Trust money includes corporations and utilities. This favoritism affects not conscionable the output but besides the sensitivity to commodity prices.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation output arsenic of the adjacent of trading connected August 6.

The Alerian MLP ETF is somewhat much costly with a 1.01% disbursal ratio, but it offers a overmuch higher payout. Investors successful the First Trust money wage 0.95% annually for a much diversified but lower-yielding portfolio.

Performance & hazard examination

What's wrong

Alerian MLP ETF focuses connected vigor infrastructure maestro constricted partnerships (MLPs) that gain a bulk of their currency travel from the transportation, storage, and processing of vigor commodities. The portfolio is highly concentrated successful the vigor sector, which accounts for 98% of assets, with the remaining 2% successful utilities. Its largest positions see Sunoco LP (NYSE:SUN) astatine 14.4%, Plaijs All America Pipeline LP at 13.4%, and Energy Transfer LP (NYSE:ET) astatine 13.2. The money holds 14 positions and was launched successful 2010. Alerian MLP ETF has paid $4.02 per stock implicit the trailing 12 months, which connected its caller ~$55.0 stock terms works retired to a 7.4% yield.

First Trust North American Energy Infrastructure Fund targets a broader premix of companies, including U.S. and Canadian earthy state and electrical utilities. The portfolio allocates 55% to utilities and 26% to energy, providing much antiaircraft characteristics than a pure-play MLP fund. Its apical holdings see Enterprise Products Partners LP (NYSE:EPD) astatine 8.8%, Energy Transfer astatine 7.7%, alongside a 7.4% currency presumption held successful an organization wealth marketplace money with Morgan Stanley & Co. (NYSE:MS). The money holds 65 positions and was launched successful 2012. First Trust North American Energy Infrastructure Fund has paid $1.21 per stock implicit the trailing 12 months, which connected its caller ~$43.6 stock terms works retired to a 2.8% yield. It besides incorporates an ESG surface to filter its concern universe.