FREL vs. FRI

Last updated Jun 4, 2026

FREL (Fidelity MSCI Real Estate Index ETF) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - FREL tracks the MSCI USA IMI Real Estate Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, FREL returned 5.67%/yr vs 5.62%/yr for FRI. With a 0.97 correlation, they move nearly in lockstep. FREL charges 0.08%/yr vs 0.50%/yr for FRI.

Performance

FREL vs. FRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Real Estate Index ETF (FREL) and First Trust S&P REIT Index Fund (FRI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FREL achieves a 7.59% return, which is significantly lower than FRI's 11.90% return. Both investments have delivered pretty close results over the past 10 years, with FREL having a 5.67% annualized return and FRI not far behind at 5.62%.

FREL

• 1D: -0.14%
• 1M: -1.00%
• YTD: 7.59%
• 6M: 6.51%
• 1Y: 9.81%
• 3Y*: 9.05%
• 5Y*: 2.09%
• 10Y*: 5.67%

FRI

• 1D: 0.21%
• 1M: -0.46%
• YTD: 11.90%
• 6M: 10.60%
• 1Y: 14.73%
• 3Y*: 11.09%
• 5Y*: 4.41%
• 10Y*: 5.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FREL vs. FRI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FREL Fidelity MSCI Real Estate Index ETF	7.59%	3.09%	5.05%	11.74%	-26.21%	40.46%	-4.99%	28.78%	-4.52%	8.86%
FRI First Trust S&P REIT Index Fund	11.90%	2.80%	7.84%	13.33%	-24.66%	42.55%	-7.90%	23.67%	-4.28%	3.86%

Correlation

The correlation between FREL and FRI is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 6, 2015	0.97

The correlation between FREL and FRI has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

FREL vs. FRI - Sectors Allocation Comparison

Sectors	FREL	FRI
Real Estate	97.6%	96.2%
Basic Materials	1.2%	-
Communication Services	0.4%	-
Technology	0.3%	-
Energy	0.1%	-
Financial Services	0.0%	2.3%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	0.8%

Return for Risk

FREL vs. FRI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FREL

FREL Risk / Return Rank: 22
FREL Sharpe Ratio Rank: 21
FREL Sortino Ratio Rank: 20
FREL Omega Ratio Rank: 20
FREL Calmar Ratio Rank: 24
FREL Martin Ratio Rank: 26

FRI

FRI Risk / Return Rank: 34
FRI Sharpe Ratio Rank: 31
FRI Sortino Ratio Rank: 29
FRI Omega Ratio Rank: 29
FRI Calmar Ratio Rank: 40
FRI Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FREL vs. FRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Real Estate Index ETF (FREL) and First Trust S&P REIT Index Fund (FRI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FREL	FRI	Difference
Sharpe ratio: Return per unit of total volatility	0.75	1.13	-0.39
Sortino ratio: Return per unit of downside risk	1.10	1.59	-0.49
Omega ratio: Gain probability vs. loss probability	1.14	1.20	-0.06
Calmar ratio: Return relative to maximum drawdown	1.17	1.95	-0.79
Martin ratio: Return relative to average drawdown	3.67	6.21	-2.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FREL vs. FRI - Sharpe Ratio Comparison

The current FREL Sharpe Ratio is 0.75, which is lower than the FRI Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of FREL and FRI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FREL	FRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.75	1.13	-0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	0.24	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.27	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.18	+0.07

Drawdowns

FREL vs. FRI - Drawdown Comparison

The maximum FREL drawdown since its inception was -42.61%, smaller than the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for FREL and FRI.

Drawdown Indicators

	FREL	FRI	Difference
Max Drawdown Largest peak-to-trough decline	-42.61%	-71.95%	+29.34%
Max Drawdown (1Y) Largest decline over 1 year	-8.45%	-7.57%	-0.88%
Max Drawdown (3Y) Largest decline over 3 years	-17.54%	-18.90%	+1.36%
Max Drawdown (5Y) Largest decline over 5 years	-34.40%	-31.21%	-3.19%
Max Drawdown (10Y) Largest decline over 10 years	-42.61%	-44.16%	+1.55%
Current Drawdown Current decline from peak	-3.93%	-3.24%	-0.69%
Average Drawdown Average peak-to-trough decline	-9.95%	-13.70%	+3.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	2.38%	+0.30%

Volatility

FREL vs. FRI - Volatility Comparison

Fidelity MSCI Real Estate Index ETF (FREL) and First Trust S&P REIT Index Fund (FRI) have volatilities of 3.75% and 3.93%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FREL	FRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	3.93%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	9.27%	9.14%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	13.17%	13.05%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.84%	18.65%	+0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.67%	21.06%	-0.39%

FREL vs. FRI - Expense Ratio Comparison

FREL has a 0.08% expense ratio, which is lower than FRI's 0.50% expense ratio.

Dividends

FREL vs. FRI - Dividend Comparison

FREL's dividend yield for the trailing twelve months is around 3.34%, more than FRI's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FREL Fidelity MSCI Real Estate Index ETF	3.34%	3.59%	3.48%	3.73%	3.57%	2.34%	3.77%	3.32%	5.54%	3.27%	4.01%	3.80%
FRI First Trust S&P REIT Index Fund	2.60%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%

Frequently Asked Questions

Can I hold both FREL and FRI in my portfolio?

With a correlation of 0.96, FREL and FRI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FREL or FRI?

FRI has higher volatility (3.93%) compared to FREL (3.75%). In terms of maximum drawdown, FREL dropped -42.61% vs FRI's -71.95%.

Which ETF is better, FREL or FRI?

On 10-year performance, FREL leads with 5.67% vs 5.62% for FRI. On fees, FREL is cheaper at 0.08% per year. On volatility, FREL has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FREL or FRI?

Over the 10-year period, FREL has performed better with a 5.67% return vs 5.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FREL or FRI?

FREL is cheaper with a 0.08% expense ratio, compared with 0.50% for FRI.

Which ETF pays a higher dividend yield, FREL or FRI?

FREL has the higher dividend yield at 3.34%, compared with 2.60% for FRI.

What is the main difference between FREL and FRI?

FREL tracks MSCI USA IMI Real Estate Index, while FRI tracks S&P United States REIT. They also come from different issuers: Fidelity and First Trust. Their fees differ too: 0.08% for FREL and 0.50% for FRI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.13 vs 0.75), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.