Key Points
Alerian MLP ETF provides a significantly higher dividend yield than State Street SPDR S&P Oil & Gas Exploration & Production ETF but carries a higher expense ratio.
The State Street ETF focus on the exploration and production segment, while the Alerian MLP ETF targets energy infrastructure.
Alerian MLP ETF has demonstrated lower price volatility and a smaller maximum drawdown over the last five years.
The Alerian MLP ETF (NYSEMKT:AMLP) provides high-yield exposure to midstream energy infrastructure, while the State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) targets upstream producers with a much lower expense ratio.
Energy investors often choose between the commodity-price sensitivity of exploration and production and the fee-based stability of midstream infrastructure. This comparison examines how these two popular funds differ in cost, portfolio concentration, and historical risk-adjusted returns within the volatile energy sector.
Snapshot (cost & size)
| Metric | XOP | AMLP |
|---|---|---|
| Issuer | SPDR | ALPS Funds |
| Share price | $175.52 (as of 2026-11-10) | $50.95 (as of 2026-11-10) |
| Expense ratio | 0.35% | 1.01% |
| 1-yr return (as of 2026-11-10) | 36.3% | 16.5% |
| Dividend yield | 1.7% | 7.9% |
| Beta | 0.61 | 0.53 |
| AUM | $4.0B | $12.3B |
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 as of the close of trading on Nov. 10, 2026.
Cost is a major differentiator in this matchup, as the State Street fund is significantly more affordable for long-term holders. However, income-focused investors may find the Alerian fund more appealing given its substantially higher historical payout.
Performance & risk comparison
| Metric | XOP | AMLP |
|---|---|---|
| Max drawdown (5 yr) | (35.0%) | (20.9%) |
| Growth of $1,000 over 5 years (total return) | $1,838 | $2,123 |
What's inside
Alerian MLP ETF focuses on energy infrastructure with a concentrated portfolio of 20 holdings. The fund normally invests at least 90% of its assets in energy infrastructure master limited partnerships that earn the majority of their cash flow from the transportation and processing of energy commodities. Its largest positions include Plains All American Pipeline LP (NASDAQ:PAA) at 14%, MPLX LP (NYSE:MPLX) at 13.7%, and Enterprise Products Partners LP (NYSE:EPD) at 13.2%. Launched in 2010, the Alerian fund has paid $4.07 per share over the trailing 12 months, which on its recent ~$50.95 share price works out to a 7.9% yield.
State Street SPDR S&P Oil & Gas Exploration & Production ETF tracks a modified equal-weighted index of 51 holdings. It offers investors targeted exposure to the oil and gas exploration segment of the S&P Total Market Index, which includes integrated companies as well as those focused on refining and marketing. Top holdings include Range Resources (NYSE:RRC) at 3.3%, Apa (NASDAQ:APA) at 3%, and Murphy Oil Corp. (NYSE:MUR) at 2.9%. Launched in 2006, the State Street fund has paid $3.12 per share over the trailing 12 months, which, on its recent ~$175.52 share price, works out to a 1.7% yield.
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Which looks like the better buy?
Given the skyrocketing price of oil and gasoline, it's natural that investors want to find an energy ETF that can secure some of the industry's profits for their own portfolio. Both of these funds fit the bill, but they have key differences that investors should examine before diving in.
First, let's examine the Alerian MLP fund. MLPs -- master limited partnerships -- are a common structure for midstream oil and gas businesses. The structure means that MLPs don't pay taxes, instead handing the tax bill to investors who receive distributions. That explains the high expense ratio for the fund, compared to its rival here, since it includes an allowance for the ETF's estimated tax liability, which it will incur in the future by not passing along the full tax liability to ETF holders. Investing directly in MLPs outside of a fund like this means handling K-1 forms for each MLP, which is a time-consuming and sometimes confusing tax-time hassle. The Alerian ETF simplifies investing in MLPs by handling the accounting and sending shareholders a single 1099 for tax filing. It's simpler for sure.
The Alerian has just 20 holdings, which are mostly mid-cap value stocks, about 66% of the portfolio, with the rest in small caps, mostly value, and some growth stocks in there.
That small portfolio size means the Alerian fund is extremely focused on its top 10 holdings, with that cadre accounting for more than 96% of assets. That brings some concentration risk.
The Alerian ETF has returned 17.8% over the past three years, 18.1% over the previous five years, and 7.3% in the prior ten years.
XOP, the State Street ETF, is all U.S. stocks, with 17% in large-cap equities, mainly value stocks, 33% mid-caps, also primarily value stocks, and 51% in small caps, also largely value.
The small-cap focus should deliver outsize returns over time but also greater volatility.
The fund is just about 20% concentrated in its top 10 holdings, which mitigates the risk of a single issue to the overall portfolio somewhat.
Performance-wise, XOP has rewarded its investors with 3-, 5-, and 10-year annualized returns of 14.6%, 16.6%, and 5.7%, respectively.
Based on performance to date, AMLP beats XOP in every time frame. Much of that comes in the form of a high dividend, so that can make a difference to tax-sensitive investors.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool recommends EOG Resources, Enterprise Products Partners, and Murphy Oil. The Motley Fool has a disclosure policy.