Vanguard Energy ETF (VDE +0.45%) provides low-cost, broad exposure to traditional oil and gas companies, whereas First Trust North American Energy Infrastructure Fund (EMLP +0.00%) focuses on income-oriented utilities and pipelines.

Investors seeking exposure to the North American energy landscape often choose between pure-play energy stocks and infrastructure-heavy models. Both funds offer ways to play the sector's recovery and cash flows, but they differ sharply in cost, sector concentration, and risk profiles as of June 29, 2026.

Snapshot (cost & size)

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.

VDE is significantly more affordable than EMLP, with an expense ratio of 0.09% compared to the 0.95% charged by the First Trust fund. While the costs differ, the income potential is comparable, as EMLP recently offered a slightly higher trailing yield.

Performance & risk comparison

What's inside

The Vanguard Energy ETF (VDE +0.45%) provides concentrated exposure to the U.S. energy sector, with approximately 99% of its portfolio allocated to energy stocks and 0% in basic materials. Its largest positions include Exxon Mobil Corp (XOM +0.99%) at 21.98%, Chevron Corp (CVX +1.35%) at 14.21%, and ConocoPhillips (COP +0.94%) at 5.78% out of 112 total holdings. The fund was launched in 2004.

The First Trust North American Energy Infrastructure Fund (EMLP +0.00%) holds 65 positions, with its heaviest allocations in utilities at 54% and energy at 27%. Top holdings include Energy Transfer LP (ET 0.66%) at 7.22% and Enterprise Products Partners LP (EPD 0.05%) at 6.88%. The fund utilizes an ESG screen and was launched in 2012.

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Which looks like the better buy

Vanguard Energy ETF (VDE) and the First Trust North American Energy Infrastructure Fund (EMLP) are both energy exchange-traded funds (ETFs), although they serve different purposes. Investors seeking an energy-focused ETF would be wise to understand the difference between these two ETFs. Here’s how they compare.

First, VDE is a traditional, passively managed energy ETF. Its top holdings include the so-called “energy majors,” such as ExxonMobil, Chevron, and ConocoPhillips. These companies are vertically integrated, meaning they are involved in every aspect of the energy discovery and delivery process — from searching for oil and gas to recovering it from the earth, transporting it, refining it, and selling it to consumers. Therefore, VDE is best for investors seeking exposure to the entire energy ecosystem.

EMLP, on the other hand, is an actively-managed fund that focuses on companies that generate at least half of their revenue from the operation of energy infrastructure — such as pipelines, storage tanks, and power transmission. As such, EMLP carries higher costs. Its expense ratio of 0.95 is significantly higher than VDE’s 0.09%.

As for performance, the two funds have generated similar total returns over the last decade. VDE has generated a total return of 133%, equating to a compound annual growth rate (CAGR) of 8.8%. EMLP, meanwhile, has logged a total return of 165%, with a CAGR of 10.3%. However, both funds have substantially underperformed the S&P 500 index over this same period, generating total returns of 322% and a CAGR of 15.5%.

In summary, VDE may be favored by investors seeking traditional energy sector exposure at a reasonable cost. Yet, other investors, particularly those willing to pay a higher share in fees, may favor EMLP due to its track record of delivering higher returns.