Which MLP ETF Is the Better Buy: Global X's MLPX or Alerian's AMLP?

Which MLP ETF Is the Better Buy: Global X's MLPX or Alerian's AMLP?

Sara Appino, The Motley Fool

Fri, July 31, 2026 at 6:35 PM GMT+3 4 min read

The choice between Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) and Alerian MLP ETF (NYSEMKT:AMLP) centers on whether investors prioritize a higher immediate dividend yield or lower operating costs and broader diversification.

Investors looking for exposure to North American energy infrastructure often compare these two midstream Master Limited Partnership (MLP) funds. While both target the infrastructure required to transport and store energy commodities, their underlying index methodologies result in distinct concentration levels and cost structures that may affect long-term results for income seekers.

Snapshot (cost & size)

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.

Cost is a major differentiator in this matchup, as MLPX is the significantly more affordable option with an expense ratio of 0.45%. While AMLP carries a higher 1.01% fee, it may appeal to income-oriented investors due to its substantially higher trailing-12-month dividend yield of 7.3%.

Performance & risk comparison

What's inside

The Alerian MLP ETF (NYSEMKT:AMLP) provides concentrated exposure to energy infrastructure, with a portfolio comprising 98% energy and 2% utilities stocks. With $12.8 billion in assets under management (AUM), the fund holds 14 positions. Its largest positions include Sunoco (NYSE:SUN) at 13.25%, Plains All American Pipeline (NASDAQ:PAA) at 12.49%, and Western Midstream Partners (NYSE:WES) at 12.24%. The fund was launched in 2010. Alerian MLP ETF has paid $4.02 per share over the trailing 12 months, which on its recent ~$54.83 share price works out to a 7.3% yield.

In contrast, the Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) maintains a broader portfolio of 29 holdings and $3.6 billion in AUM, focusing entirely on the energy sector at 100% weighting. Its top holdings include TC Energy (NYSE:TRP) at 9.10%, Enbridge (NYSE:ENB) at 8.98%, and Williams Companies (NYSE:WMB) at 8.31%. This fund was launched in 2013. Global X - MLP & Energy Infrastructure ETF has paid $3.04 per share over the trailing 12 months, which on its recent ~$74.85 share price works out to a 4.1% yield.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

AMLP's yield is one of the most eye-catching numbers in the income ETF universe. But before you reach for that payout, there is a structural detail worth understanding. And it has cost long-term holders significantly over time.

AMLP is structured as a C-corporation, which means the fund itself pays corporate taxes on gains before any distributions reach investors. That tax drag, combined with a high expense ratio, has eroded returns year after year. Over the past decade, MLPX returned more than double what AMLP delivered despite investing in the same pipelines and energy infrastructure. The yield looks generous on paper, but a meaningful portion of it is offset by the tax structure eating into capital appreciation.

MLPX avoids that problem entirely by limiting direct MLP exposure in a way that sidesteps fund-level corporate taxes. It charges less than half of what AMLP does and has delivered significantly stronger total returns over every long-term horizon.

For income-focused investors prioritizing immediate cash flow in a taxable brokerage account, AMLP's higher distribution yield is attractive. However, holding AMLP inside a tax-advantaged account like an IRA is a significant mistake, as the fund's internal corporate tax drag permanently erodes the account's tax-sheltered compounding power. For the vast majority of long-term investors, regardless of account type, MLPX's lower fees, tax-efficient structure, and superior total returns make it the more practical and lucrative choice.

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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Tc Energy. The Motley Fool has a disclosure policy.

Which MLP ETF Is the Better Buy: Global X's MLPX or Alerian's AMLP? was originally published by The Motley Fool