Better Energy ETF: First Trust's EMLP Targeting Fossil Fuels vs. the iShares Clean Energy-Focused ICLN
EMLP delivered $2,139 on a $1,000 investment over five years with a max drawdown of just 14.6%, while ICLN's renewable focus saw a peak decline of 57.2%.
The First Trust North American Energy Infrastructure Fund (EMLP) and the iShares Global Clean Energy ETF (ICLN) are two distinct ETFs with differing focuses within the energy sector. EMLP targets North American fossil fuel and utility infrastructure, while ICLN is a more global, technology-oriented portfolio focused on renewable energy.
The iShares ETF employs an index-based strategy, capturing the global trend towards renewables, whereas the First Trust fund is actively managed, concentrating on the physical infrastructure of the North American grid. Investors might utilize these funds to balance their portfolios, incorporating high-growth potential in green technology represented by ICLN, alongside steady income from utility operations provided by EMLP.
The beta, which measures price volatility relative to the S&P 500, is calculated using monthly returns over the available fund history, up to five years. The 1-year return represents the total return over the trailing 12 months, and the dividend yield is the trailing-12-month distribution yield.
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