Vanguard Energy ETF vs. Global X MLP & Energy Infrastructure ETF: The Oil Sell-Off Is Exposing a Critical Difference for 2027

Oil prices continue to slide, with Brent crude now down nearly 20% from its October peak of approximately $115 per barrel, as easing tensions in the Middle East and growing supply concerns weigh on the market. For investors, the decline highlights an important distinction between two popular energy funds: the Vanguard Energy ETF (VDE +0.67%) and Global X MLP & Energy Infrastructure ETF (MLPX +2.12%).

The Vanguard fund offers broad exposure to oil and gas producers, while the Global X fund focuses on pipelines and energy infrastructure that generate revenue primarily through transportation and storage. As oil prices retreat, these different business models could have significant implications for investors heading into 2027.

Snapshot (cost & size)

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.

Vanguard Energy ETF is the more affordable option, charging just 0.09% compared to the 0.45% fee for Global X-MLP & Energy Infrastructure ETF. However, the Global X fund provides a higher payout for income-seeking investors.

Performance & risk comparison

What’s inside

Vanguard Energy ETF provides broad exposure to more than 100 stocks across the domestic energy sector, including explorers and producers. Its largest positions include ExxonMobil Holdings Corp(XOM -0.61%) at 22.88%, Chevron Corp (CVX -0.84%) at 14.42%, and ConocoPhillips (COP -1.09%) at 5.87%. It was launched in 2004 and has paid $4.08 per share over the trailing 12 months, which on its recent ~$187.38 share price works out to a 2.45% yield.

Global X-MLP & Energy Infrastructure ETF focuses more narrowly on 29 holdings, primarily midstream energy infrastructure and Master Limited Partnerships. Top holdings include TC Energy Corp (TRP +1.70%) at 9.83%, Enbridge Inc (ENB +1.18%) at 9.24%, and Williams Cos Inc (WMB +3.73%) at 8.66%. It was launched in 2013 and has paid $3.07 per share over the trailing 12 months, which on its recent ~$74.33 share price works out to a 4.1% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy for 2027

The Vanguard Energy ETF has enjoyed a spectacular year, gaining more than 50% through October as energy stocks benefited from elevated oil prices. However, the recent retreat in crude oil raises questions about how much upside remains. A prolonged decline could pressure earnings among the fund’s largest oil producers, even with their strong financial positions.

The Global X fund offers a different opportunity. Its exposure to natural gas pipelines, processing facilities, and export infrastructure positions it to benefit from rising electricity demand, expanding liquefied natural gas (LNG) exports, and continued infrastructure investment. These longer-term growth drivers are less dependent on rising crude prices, although weaker production activity could still affect transportation volumes.

For investors looking toward 2027, the Global X MLP & Energy Infrastructure ETF looks like the better buy. Growing natural gas demand and relatively predictable fee-based cash flows offer an attractive combination of income and growth potential. Vanguard could outperform if oil prices rebound, but given the uncertain outlook for crude, I’d favor infrastructure businesses positioned to benefit from rising energy demand regardless of short-term commodity price movements.