EMLP vs SPY

EMLP vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricEMLPSPYWinner
Expense Ratio0.95%0.09%
AUM$4.2B$821.1B
Dividend Yield2.76%1.01%
Holdings62505
YTD Return+17.86%+13.17%
1Y Return+21.26%+21.53%
3Y Return (annualized)+21.71%+22.06%
5Y Return (annualized)+17.04%+13.35%
Volatility (annualized)15.2%15.3%
Max Drawdown-48.0%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionJun 20, 2012Jan 22, 1993

EMLP vs SPY Performance

First Trust North American Energy Infrastructure Fund (EMLP) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EMLP returned +21.26% while SPY returned +21.53%. Year to date, EMLP is up 17.86% versus a gain of 13.17% for SPY.

Over three years, EMLP compounded at +21.71% per year against +22.06% for SPY; over five years the annualized figures are +17.04% and +13.35% respectively. Across the full 14-year window we track, SPY has the edge at +8.82% annualized vs +7.28%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.2% for EMLP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -48.0% for EMLP and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EMLP charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, EMLP currently yields 2.76% against 1.01% for SPY.

Holdings Overlap

2.3%overlap

EMLP and SPY share 31 holdings out of 533 unique holdings combined, representing a 2.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EMLPWeight in SPYDifference
KMI3.70%0.09%3.61%
SO2.70%0.16%2.54%
PPL2.46%0.04%2.42%
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Frequently Asked Questions

Which is cheaper, EMLP or SPY?

EMLP has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.

Which performed better, EMLP or SPY?

Over the past year EMLP returned +21.26% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), EMLP annualized +7.28% vs +8.82% for SPY. Past performance does not guarantee future results.

Which is riskier, EMLP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 15.2% for EMLP. Worst drawdown: EMLP -48.0% vs SPY -56.5%.

Should I hold both EMLP and SPY?

EMLP and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EMLP and SPY?

EMLP and SPY share 31 common holdings with a 2.3% weight overlap. Combined, they hold 533 unique securities.

Which pays a higher dividend, EMLP or SPY?

EMLP yields 2.76% while SPY yields 1.01%, so EMLP currently pays the higher dividend yield.

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