The Alerian MLP ETF (NYSEARCA:AMLP) and the Global X MLP & Energy Infrastructure ETF (NYSEARCA:MLPX) both offer stakes in the pipelines, storage tanks, and LNG terminals that move North American energy. They look like cousins but are fundamentally different. One is a C-corporation that pays its own taxes on gains. The other is a registered investment company that does not. That structural choice has produced a significant total-return gap over the past decade.
What Each Fund Is Actually Betting On
AMLP is a concentrated bet on traditional master limited partnerships. Its top six holdings sit between 11.39% and 12.76%, led by MPLX LP at 12.76%, Sunoco LP at 12.26%, and Western Midstream Partners at 12.24%. Because the fund holds more than 25% MLPs, it cannot qualify as a RIC under the Investment Company Act. It is taxed as a C-corp, which means embedded gains in the portfolio accrue a deferred tax liability that drags on NAV.
MLPX caps MLP exposure under the RIC threshold and fills the rest with midstream C-corporations. Its top holdings tilt toward large-cap corporates: Williams at 9.39%, TC Energy at 8.86%, Enbridge at 8.25%, and Kinder Morgan at 8.24%, with Cheniere Energy at 6.44% and ONEOK at 6.45%. The bet is broader: U.S. pipeline tolls, Canadian export infrastructure, LNG buildout, and corporate midstream names that have driven sector consolidation.
Where the Tax Drag Shows Up
The performance gap is significant. Over the past five years, AMLP returned 106.77% while MLPX returned 158.16%. Over ten years: 84.75% for AMLP against 217.86% for MLPX. Year-to-date in 2026, MLPX is up 23.23% versus AMLP at 12.03%.
Two forces drive the gap. First, C-corp midstream names like Williams and Targa have grown distributable cash flow faster than legacy MLPs, which have prioritized buybacks and debt reduction over distribution growth. Second, AMLP’s deferred tax accrual eats into NAV during rallies. When midstream rises, AMLP captures roughly the after-tax slice. MLPX captures the gross.
The Income Tradeoff
AMLP earns its keep on current yield. The fund paid $3.93 in distributions across 2025 and has already paid $2.04 through May 2026, with the most recent quarterly payout at $1.03. MLPX paid quarterly distributions ranging $0.69 to $0.73 across 2025, with its May 2026 payment at $0.757. On price, AMLP closed at $50.66 and MLPX at $73.02. AMLP delivers more cash per dollar invested. MLPX delivers more total wealth.
Both funds issue 1099s rather than K-1s, sparing investors the tax-filing complexity of owning individual MLPs directly.
Practical Comparison
| Factor | AMLP | MLPX |
|---|---|---|
| Net expense ratio | 0.84% | ~0.45% |
| Net assets | $11.82 billion | $3.23 billion |
| Tax structure | C-corp (1099) | RIC (1099) |
| Holdings | Pure MLPs | MLPs + midstream C-corps |
| 5-year total return | 106.77% | 158.16% |
The Verdict
For most investors, MLPX is the more efficient way to own midstream energy. The RIC structure removes the corporate tax drag, broader holdings capture Canadian pipelines and LNG exports, and the lower expense ratio compounds in your favor over time. The ten-year return spread is too large to dismiss as cycle noise.
AMLP makes sense for taxable income investors who want the highest current yield from a 1099-issuing midstream fund and accept that tax drag will cap NAV appreciation. Retirees pulling distributions for spending will value the cash. MLPX better serves investors focused on compounding wealth. The calculus would flip only if Congress eliminated deferred tax mechanics on MLP-heavy funds or if traditional MLPs reaccelerated distribution growth ahead of corporate midstream names. Neither looks imminent.
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