FREL vs. KBWY
FREL (Fidelity MSCI Real Estate Index ETF) and KBWY (Invesco KBW Premium Yield Equity REIT ETF) are both REIT funds - FREL tracks the MSCI USA IMI Real Estate Index while KBWY tracks the KBW Nasdaq Premium Yield Equity REIT Index. Both are passively managed. Over the past 10 years, FREL returned 5.97%/yr vs 1.46%/yr for KBWY. Their correlation of 0.83 suggests significant overlap in exposure. FREL charges 0.08%/yr vs 0.35%/yr for KBWY.
Performance
FREL vs. KBWY - Performance Comparison
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Returns By Period
In the year-to-date period, FREL achieves a 11.53% return, which is significantly lower than KBWY's 22.56% return. Over the past 10 years, FREL has outperformed KBWY with an annualized return of 5.97%, while KBWY has yielded a comparatively lower 1.46% annualized return.
FREL
- 1D
- 1.38%
- 1M
- 1.09%
- YTD
- 11.53%
- 6M
- 11.94%
- 1Y
- 11.39%
- 3Y*
- 11.20%
- 5Y*
- 2.76%
- 10Y*
- 5.97%
KBWY
- 1D
- 1.25%
- 1M
- 4.73%
- YTD
- 22.56%
- 6M
- 24.93%
- 1Y
- 25.07%
- 3Y*
- 11.98%
- 5Y*
- 3.00%
- 10Y*
- 1.46%
FREL vs. KBWY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FREL Fidelity MSCI Real Estate Index ETF | 11.53% | 3.09% | 5.05% | 11.74% | -26.21% | 40.46% | -4.99% | 28.78% | -4.52% | 8.86% |
KBWY Invesco KBW Premium Yield Equity REIT ETF | 22.56% | -5.30% | -3.49% | 12.88% | -19.00% | 31.22% | -25.83% | 23.36% | -18.20% | 0.81% |
Correlation
The correlation between FREL and KBWY is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.82 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2015 | 0.83 |
The correlation between FREL and KBWY has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.
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Return for Risk
FREL vs. KBWY — Risk / Return Rank
FREL
KBWY
FREL vs. KBWY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Real Estate Index ETF (FREL) and Invesco KBW Premium Yield Equity REIT ETF (KBWY). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FREL | KBWY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.67 | ||
| Sortino ratioReturn per unit of downside risk | -0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.25 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.35 | 2.72 | -1.37 |
| Martin ratioReturn relative to average drawdown | 4.23 | 6.48 | -2.24 |
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Drawdowns
FREL vs. KBWY - Drawdown Comparison
The maximum FREL drawdown since its inception was -42.61%, smaller than the maximum KBWY drawdown of -57.68%. Use the drawdown chart below to compare losses from any high point for FREL and KBWY.
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Drawdown Indicators
| FREL | KBWY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -42.61% | -57.68% | +15.07% |
Max Drawdown (1Y)Largest decline over 1 year | -8.45% | -9.24% | +0.79% |
Max Drawdown (3Y)Largest decline over 3 years | -17.54% | -29.93% | +12.39% |
Max Drawdown (5Y)Largest decline over 5 years | -34.40% | -32.29% | -2.11% |
Max Drawdown (10Y)Largest decline over 10 years | -42.61% | -57.68% | +15.07% |
Current DrawdownCurrent decline from peak | -0.77% | -6.64% | +5.87% |
Average DrawdownAverage peak-to-trough decline | -9.91% | -14.15% | +4.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.70% | 3.88% | -1.18% |
Volatility
FREL vs. KBWY - Volatility Comparison
Fidelity MSCI Real Estate Index ETF (FREL) has a higher volatility of 5.15% compared to Invesco KBW Premium Yield Equity REIT ETF (KBWY) at 4.85%. This indicates that FREL's price experiences larger fluctuations and is considered to be riskier than KBWY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FREL | KBWY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.15% | 4.85% | +0.30% |
Volatility (6M)Calculated over the trailing 6-month period | 10.21% | 12.16% | -1.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.84% | 16.79% | -2.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.90% | 21.61% | -2.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 27.08% | -6.36% |
FREL vs. KBWY - Expense Ratio Comparison
FREL has a 0.08% expense ratio, which is lower than KBWY's 0.35% expense ratio.
Dividends
FREL vs. KBWY - Dividend Comparison
FREL's dividend yield for the trailing twelve months is around 3.28%, less than KBWY's 8.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FREL Fidelity MSCI Real Estate Index ETF | 3.28% | 3.59% | 3.48% | 3.73% | 3.57% | 2.34% | 3.77% | 3.32% | 5.54% | 3.27% | 4.01% | 3.80% |
KBWY Invesco KBW Premium Yield Equity REIT ETF | 8.28% | 9.79% | 8.74% | 7.90% | 7.41% | 5.05% | 10.35% | 6.19% | 8.64% | 7.25% | 6.55% | 5.72% |
Frequently Asked Questions
FREL and KBWY have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FREL has higher volatility (5.15%) compared to KBWY (4.85%). In terms of maximum drawdown, FREL dropped -42.61% vs KBWY's -57.68%.
On 10-year performance, FREL leads with 5.97% vs 1.46% for KBWY. On fees, FREL is cheaper at 0.08% per year. On volatility, KBWY has been the lower-risk option at 4.85%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FREL has performed better with a 5.97% return vs 1.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FREL is cheaper with a 0.08% expense ratio, compared with 0.35% for KBWY.
KBWY has the higher dividend yield at 8.28%, compared with 3.28% for FREL.
FREL tracks MSCI USA IMI Real Estate Index, while KBWY tracks KBW Nasdaq Premium Yield Equity REIT Index. They also come from different issuers: Fidelity and Invesco. Their fees differ too: 0.08% for FREL and 0.35% for KBWY.
KBWY currently has the higher Sharpe Ratio (1.50 vs 0.83), 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.
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