Energy investors face a meaningful choice between upstream oil exposure and infrastructure income when comparing these two popular ETFs.
The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the First Trust North American Energy Infrastructure Fund (EMLP) represent fundamentally different approaches to energy investing.
XOP targets drillers and refiners, while EMLP focuses on pipelines, utilities, and the toll-booth business models of midstream infrastructure companies.
As of August 10, 2026, XOP traded at $175.93 per share with an expense ratio of just 0.35%, making it significantly cheaper than its counterpart.
EMLP traded at $43.52 per share with a higher expense ratio of 0.95%, though it compensates income-focused investors with a trailing dividend yield of 2.8% versus XOP’s 1.8%.
XOP has delivered a striking one-year total return of 46.4%, far outpacing EMLP’s more modest but still respectable 18.0% over the same period.
The surge in oil prices following the U.S. attack on Iran drove Brent crude nearly double from its late 2025 levels, with prices still sitting roughly 50% higher heading into the second half of 2026.
XOP’s year-to-date gains of almost 42% reflect that oil price windfall, as U.S. oil companies reaped higher revenues with little corresponding increase in their operating costs.
EMLP’s midstream holdings, by contrast, are largely contracted ahead of time with pricing based on volume rather than commodity prices, which explains its comparatively subdued year-to-date return of 17.8%.
Risk profiles diverge sharply over longer timeframes, with XOP suffering a maximum five-year drawdown of 35.0% compared to just 14.6% for EMLP.
Over five years, a $1,000 investment in XOP grew to $2,381 on a total return basis, edging out EMLP’s $2,097 result, though XOP’s path there was far more volatile.
EMLP’s longer track record tells a more compelling story for patient investors, with a 10-year annualized return of 10% compared to just 4.6% for XOP over the same period.
EMLP holds 57 positions spread across energy at 48%, utilities at 46%, and industrials at 5%, with top holdings including Enterprise Products Partners (EPD) at 8.8% and Energy Transfer LP (ET) at 7.7%.
A Morgan Stanley (MS) money market fund representing effectively a cash position accounts for 7.4% of EMLP’s portfolio, and the fund incorporates an ESG screen despite its fossil fuel focus.
XOP holds 51 positions following a modified equal-weighted index, with top holdings including PBF Energy (PBF) at 4%, Par Pacific Holdings (PARR) at 3.5%, and Delek U.S. Holdings (DK) at 3.3%.
One practical advantage of EMLP is its simplified tax treatment, consolidating what would otherwise be multiple K-1 forms from individual MLP investments into a single 1099 for shareholders.
Both funds carry very similar beta readings of 0.53 for XOP and 0.56 for EMLP, suggesting comparable sensitivity to broader market swings despite their very different underlying businesses.
XOP manages $3.6 billion in assets while EMLP is slightly larger at $4.1 billion, reflecting strong investor appetite for both styles of energy exposure.
Stripping out 2026’s extraordinary oil price environment, XOP investors largely ended 2025 at similar price levels to where they started 2015, making the fund’s long-term price appreciation case harder to sustain.
For long-term investors prioritizing consistency, EMLP’s steady infrastructure income and shallower drawdowns make it the more durable energy allocation compared to XOP’s commodity-driven volatility.
