FREL vs. VNQ
FREL (Fidelity MSCI Real Estate Index ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds - FREL tracks the MSCI USA IMI Real Estate Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, FREL returned 5.83%/yr vs 5.31%/yr for VNQ. With a 0.99 correlation, they move nearly in lockstep. FREL charges 0.08%/yr vs 0.13%/yr for VNQ.
Performance
FREL vs. VNQ - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both investments are quite close, with FREL having a 10.01% return and VNQ slightly higher at 10.32%. Over the past 10 years, FREL has outperformed VNQ with an annualized return of 5.83%, while VNQ has yielded a comparatively lower 5.31% annualized return.
FREL
- 1D
- 0.96%
- 1M
- -0.29%
- YTD
- 10.01%
- 6M
- 10.30%
- 1Y
- 11.38%
- 3Y*
- 10.69%
- 5Y*
- 2.43%
- 10Y*
- 5.83%
VNQ
- 1D
- 1.08%
- 1M
- -0.19%
- YTD
- 10.32%
- 6M
- 10.63%
- 1Y
- 11.80%
- 3Y*
- 10.81%
- 5Y*
- 2.52%
- 10Y*
- 5.31%
FREL vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FREL Fidelity MSCI Real Estate Index ETF | 10.01% | 3.09% | 5.05% | 11.74% | -26.21% | 40.46% | -4.99% | 28.78% | -4.52% | 8.86% |
VNQ Vanguard Real Estate ETF | 10.32% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between FREL and VNQ is 1.00 - 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 | 1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | 1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2015 | 0.99 |
The correlation between FREL and VNQ has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FREL vs. VNQ — Risk / Return Rank
FREL
VNQ
FREL vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Real Estate Index ETF (FREL) and Vanguard Real Estate ETF (VNQ). 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 | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.16 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.35 | 1.42 | -0.07 |
| Martin ratioReturn relative to average drawdown | 4.23 | 4.45 | -0.22 |
Loading charts...
Drawdowns
FREL vs. VNQ - Drawdown Comparison
The maximum FREL drawdown since its inception was -42.61%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for FREL and VNQ.
Loading charts...
Drawdown Indicators
| FREL | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -42.61% | -73.07% | +30.46% |
Max Drawdown (1Y)Largest decline over 1 year | -8.45% | -8.34% | -0.11% |
Max Drawdown (3Y)Largest decline over 3 years | -17.54% | -17.46% | -0.08% |
Max Drawdown (5Y)Largest decline over 5 years | -34.40% | -34.48% | +0.08% |
Max Drawdown (10Y)Largest decline over 10 years | -42.61% | -42.40% | -0.21% |
Current DrawdownCurrent decline from peak | -2.12% | -1.95% | -0.17% |
Average DrawdownAverage peak-to-trough decline | -9.91% | -13.60% | +3.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.70% | 2.66% | +0.04% |
Volatility
FREL vs. VNQ - Volatility Comparison
Fidelity MSCI Real Estate Index ETF (FREL) and Vanguard Real Estate ETF (VNQ) have volatilities of 4.96% and 5.03%, 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.
Loading charts...
Volatility by Period
| FREL | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.96% | 5.03% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 10.15% | 10.15% | 0.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.80% | 13.81% | -0.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.89% | 18.85% | +0.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 20.75% | -0.03% |
FREL vs. VNQ - Expense Ratio Comparison
FREL has a 0.08% expense ratio, which is lower than VNQ's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FREL vs. VNQ - Dividend Comparison
FREL's dividend yield for the trailing twelve months is around 3.32%, less than VNQ's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FREL Fidelity MSCI Real Estate Index ETF | 3.32% | 3.59% | 3.48% | 3.73% | 3.57% | 2.34% | 3.77% | 3.32% | 5.54% | 3.27% | 4.01% | 3.80% |
VNQ Vanguard Real Estate ETF | 3.61% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
With a correlation of 1.00, FREL and VNQ 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.
VNQ has higher volatility (5.03%) compared to FREL (4.96%). In terms of maximum drawdown, FREL dropped -42.61% vs VNQ's -73.07%.
On 10-year performance, FREL leads with 5.83% vs 5.31% for VNQ. On fees, FREL is cheaper at 0.08% per year. Their volatility is very similar. 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 5.83% return vs 5.31%. 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 0.13% for VNQ.
VNQ has the higher dividend yield at 3.61%, compared with 3.32% for FREL.
FREL tracks MSCI USA IMI Real Estate Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.08% for FREL and 0.13% for VNQ.
VNQ currently has the higher Sharpe Ratio (0.86 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.
Find the right allocation for FREL and VNQ
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer