MLPX vs USAI

Key Takeaways

• Different scope: MLPX is almost purely midstream energy infrastructure, while USAI layers in natural gas producers, adding commodity-price sensitivity.
• Cost gap: MLPX carries a 0.45% expense ratio versus 0.75% for USAI, a meaningful structural advantage over the long term.
• Portfolio breadth: MLPX holds roughly 29 securities, while USAI holds closer to 33–37, including exploration and production (E&P) names absent from MLPX.
• Overlapping core: Both funds are anchored by large midstream names such as Williams, Enbridge, Kinder Morgan, and Energy Transfer.
• Income profile: Both offer meaningful distributions, but MLPX's midstream focus tends to produce more stable, fee-based cash flow.
• Liquidity: MLPX is substantially larger and more heavily traded than USAI, which is a smaller fund.

Introduction

Energy infrastructure exchange-traded funds (ETFs) have become a focal point for investors seeking income and inflation-adjacent exposure without direct commodity price risk. MLPX and USAI both target North American energy infrastructure, but they are not identical strategies. This ETF comparison clarifies whether the two funds compete head-to-head or simply offer alternative exposure within the same sector. The core distinction lies in how far each fund reaches beyond pipelines and processing assets into upstream natural gas production, which changes the risk profile, sector exposure, and relative positioning of each portfolio.

Global X MLP & Energy Infrastructure ETF (MLPX) Overview

MLPX is a passively managed fund that seeks to track the Solactive MLP & Energy Infrastructure Index. Launched in 2013, it holds roughly 29 securities and carries a net expense ratio of 0.45%. The fund invests in master limited partnerships (MLPs) — publicly traded partnerships that pass through most income to unitholders — and in energy infrastructure corporations (C-corporations). The index is concentrated in midstream businesses: pipelines, gathering and processing, storage, and liquefied natural gas (LNG) export terminals.

Top holdings include Williams Companies (WMB), TC Energy (TRP), Enbridge (ENB), Targa Resources (TRGP), Kinder Morgan (KMI), ONEOK (OKE), Cheniere Energy (LNG), MPLX (MPLX), Enterprise Products Partners (EPD), and Energy Transfer (ET). Sector allocation is effectively 100% energy. The fund is non-diversified and structured as a registered investment company, which helps it manage MLP exposure within regulatory limits.

Pacer American Energy Independence ETF (USAI) Overview

USAI is a passively managed fund that seeks to track the American Energy Independence Index, a proprietary rules-based benchmark. Launched in 2017, it holds roughly 33–37 securities and carries a net expense ratio of 0.75%. Like MLPX, the fund is non-diversified and concentrated in North American energy, but its methodology reaches beyond midstream infrastructure into companies that generate cash flow from natural gas exploration and production (E&P).

Top holdings include Cheniere Energy (LNG), Energy Transfer (ET), Enterprise Products Partners (EPD), Williams Companies (WMB), TC Energy (TRP), Enbridge (ENB), Kinder Morgan (KMI), ONEOK (OKE), Targa Resources (TRGP), and EQT (EQT). Notably, the presence of producers such as EQT, Venture Global (VG), and Expand Energy (EXE) introduces direct exposure to natural gas prices, distinguishing USAI from pure midstream peers. Country exposure skews heavily toward the United States, with a meaningful Canadian component.

Industry and Thematic Backdrop

Both funds operate within the North American energy infrastructure complex, a segment shaped by several durable forces. Rising electricity demand from data centers, electrification, and reshoring has tightened natural gas balances and supported volumes on pipelines. LNG export capacity continues to expand along the U.S. Gulf Coast, benefiting midstream operators and terminal owners. Regulatory and permitting dynamics, interest rate expectations, and capital discipline across producers all influence cash flow and valuation. The key risk is commodity price cyclicality: midstream companies typically earn fee-based revenue, while producers are more directly exposed to natural gas and oil prices. This distinction is central to how the two ETFs perform in different market environments.

Performance and Positioning Comparison

In recent weeks and over recent market cycles, both MLPX and USAI have generally moved in the same direction, reflecting shared large-cap midstream exposure. However, their relative positioning diverges with commodity trends. When natural gas prices rally, USAI's producer holdings have tended to add incremental upside, giving it a higher-beta, more volatile profile. MLPX, by contrast, offers steadier, fee-based revenue that is less sensitive to short-term price swings. On a total-return basis over trailing periods, both funds have benefited from sector rotation into energy and income-oriented assets, but MLPX's lower cost and narrower mandate have historically supported more consistent relative performance, while USAI's broader reach can amplify moves in either direction.

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Tickeron AI Verdict

Based on observable structural factors, Tickeron's AI would likely favor MLPX for most investors. Its lower expense ratio, larger asset base and trading liquidity, and concentrated midstream mandate translate into better cost efficiency and more predictable cash flows. USAI offers a differentiated angle through natural gas producers, which can enhance upside when commodity prices rise but also increases volatility and direct price risk. For investors prioritizing stable income and lower costs, MLPX presents a structurally cleaner vehicle; for those seeking a more aggressive, commodity-sensitive tilt, USAI may hold appeal. The verdict reflects a probabilistic assessment of cost, diversification, trend consistency, and risk exposure rather than a forecast of future returns.

Disclaimer

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