Better Energy ETF: First Trust's EMLP Targeting Fossil Fuels vs. the iShares Clean Energy-Focused ICLN
Key Points
The First Trust North American Energy Infrastructure Fund provides a significantly higher dividend yield and lower price volatility than the iShares Global Clean Energy ETF.
The iShares Global Clean Energy ETF is the more cost-efficient option with a 0.39% expense ratio compared to 0.95% for the First Trust fund.
The First Trust North American Energy Infrastructure Fund has demonstrated superior long-term growth and much lower historical drawdowns over the last five years.
The First Trust North American Energy Infrastructure Fund (NYSEMKT:EMLP) focuses on North American fossil fuel and utility infrastructure, while the iShares Global Clean Energy ETF (NASDAQ:ICLN) provides a more global, tech-oriented renewable energy portfolio.
These ETFs offer divergent paths into the energy landscape. The iShares fund is an index-based strategy capturing the global shift toward renewables, while the First Trust fund is an actively managed vehicle targeting the physical infrastructure of the North American grid. Investors may find that these funds serve different roles in a portfolio, balancing high-growth potential in green technology against steady income from utility operations.
Snapshot (cost & size)
| Metric | ICLN | EMLP |
|---|---|---|
| Issuer | iShares | First Trust |
| Share price | $17.83 (as of 2026-08-27) | $44.19 (as of 2026-08-27) |
| Expense ratio | 0.39% | 0.95% |
| 1-yr return (as of 2026-08-27) | 25.7% | 20.0% |
| Dividend yield | 1.1% | 2.8% |
| Beta | 1.11 | 0.56 |
| AUM | $2.2 billion | $4.2 billion |
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-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Global Clean Energy ETF is the more affordable choice with an expense ratio of 0.39%, while the First Trust fund carries a higher 0.95% fee. The 0.56 percentage point difference in expense ratios is notable for long-term investors, as the First Trust fund has more than double the annual cost of its iShares counterpart.
Performance & risk comparison
| Metric | ICLN | EMLP |
|---|---|---|
| Max drawdown (5 yr) | (57.2%) | (14.6%) |
| Growth of $1,000 over 5 years (total return) | $824 | $2,139 |
The First Trust North American Energy Infrastructure Fund manages 65 positions primarily in energy infrastructure (48%) and utilities (46%). Its largest positions include Enterprise Products Partners L.P. (NYSE:EPD) at 8.97%, Energy Transfer LP (NYSE:ET) at 8.06%, and Plains GP Holdings, L.P. (NASDAQ:PAGP) at 4.49%. The fund was launched in 2012, and has paid $1.21 per share over the trailing 12 months, which on its recent ~$44.19 share price works out to a 2.8% yield.
The iShares Global Clean Energy ETF contains 106 holdings with heavy tilts toward utilities (40%), energy (29%), and industrials (24%). Its top holdings include First Solar (NASDAQ:FSLR) at 7.94%, China Yangtze Power Ltd A at 7.66%, and Bloom Energy (NYSE:BE) at 7.36%. The fund was launched in 2008, and has paid $0.18 per share over the trailing 12 months, which on its recent ~$17.83 share price works out to a 1.1% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The energy sector is experiencing a massive transformation thanks to the artificial intelligence boom. Electricity demand is soaring to the point where the U.S. Department of Energy warned of potential shortages by 2030. This means energy stocks have an enormous multi-year tailwind behind them.
The First Trust North American Energy Infrastructure Fund (EMLP) and iShares Global Clean Energy ETF (ICLN) offer two efficient yet very different ways to invest in the energy sector. Which to choose depends on the factors that matter most to you.
If you want to support a transition to clean energy, ICLN is the no-brainer choice. But if you're open to either fund, ICLN may still be a compelling opportunity. The share price is below its 52-week high of $23.78 since the Trump Administration's policies have not been favorable to the renewable energy sector. However, the tech companies funding the buildout of AI data centers prefer clean energy, which can eventually boost this ETF over the long term. Its one-year return is already higher than EMLP, and it gives you exposure to popular stocks, such as Bloom Energy.
That said, EMLP offers many attractive reasons to invest. Its dividend yield is much higher, and its price volatility is low, as measured by a beta of less than one. Its expense ratio is greater because it is an actively managed fund. Because EMLP focuses on traditional energy infrastructure, such as natural gas pipelines and electric power transmission, the fund is insulated from volatile commodity price swings.
Robert Izquierdo has positions in First Solar. The Motley Fool has positions in and recommends Bloom Energy and First Solar. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.