FREL vs. VNQI

Last updated Jun 4, 2026

FREL (Fidelity MSCI Real Estate Index ETF) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are both REIT funds - FREL tracks the MSCI USA IMI Real Estate Index while VNQI tracks the S&P Global ex-U.S. Property Index. Both are passively managed. Over the past 10 years, FREL returned 5.67%/yr vs 2.23%/yr for VNQI. A 0.59 correlation means they provide meaningful diversification when combined. FREL charges 0.08%/yr vs 0.12%/yr for VNQI.

Performance

FREL vs. VNQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Real Estate Index ETF (FREL) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). 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 higher than VNQI's -2.57% return. Over the past 10 years, FREL has outperformed VNQI with an annualized return of 5.67%, while VNQI has yielded a comparatively lower 2.23% annualized return.

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%

VNQI

• 1D: -1.52%
• 1M: -4.10%
• YTD: -2.57%
• 6M: -1.63%
• 1Y: 5.44%
• 3Y*: 7.91%
• 5Y*: -1.66%
• 10Y*: 2.23%

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

FREL vs. VNQI - 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%
VNQI Vanguard Global ex-U.S. Real Estate ETF	-2.57%	21.38%	-2.22%	6.99%	-22.94%	5.93%	-7.22%	21.59%	-9.44%	26.91%

Correlation

The correlation between FREL and VNQI is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Feb 6, 2015	0.59

The correlation between FREL and VNQI has been stable across timeframes, ranging from 0.59 to 0.65 - a consistent structural relationship.

FREL vs. VNQI - Sectors Allocation Comparison

Sectors	FREL	VNQI
Real Estate	97.6%	91.2%
Basic Materials	1.2%	0.3%
Communication Services	0.4%	-
Technology	0.3%	0.2%
Energy	0.1%	0.3%
Financial Services	0.0%	1.9%
Consumer Cyclical	-	1.1%
Consumer Defensive	-	0.1%
Healthcare	-	0.0%
Industrials	-	0.7%
Utilities	-	0.1%

Return for Risk

FREL vs. VNQI — 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

VNQI

VNQI Risk / Return Rank: 14
VNQI Sharpe Ratio Rank: 14
VNQI Sortino Ratio Rank: 14
VNQI Omega Ratio Rank: 14
VNQI Calmar Ratio Rank: 13
VNQI Martin Ratio Rank: 14

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. VNQI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Real Estate Index ETF (FREL) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). 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	VNQI	Difference
Sharpe ratio: Return per unit of total volatility	0.75	0.41	+0.34
Sortino ratio: Return per unit of downside risk	1.10	0.67	+0.43
Omega ratio: Gain probability vs. loss probability	1.14	1.08	+0.05
Calmar ratio: Return relative to maximum drawdown	1.17	0.37	+0.80
Martin ratio: Return relative to average drawdown	3.67	1.14	+2.53
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. VNQI - Sharpe Ratio Comparison

The current FREL Sharpe Ratio is 0.75, which is higher than the VNQI Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of FREL and VNQI, 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	VNQI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.75	0.41	+0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	-0.11	+0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.14	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.20	+0.06

Drawdowns

FREL vs. VNQI - Drawdown Comparison

The maximum FREL drawdown since its inception was -42.61%, which is greater than VNQI's maximum drawdown of -38.35%. Use the drawdown chart below to compare losses from any high point for FREL and VNQI.

Drawdown Indicators

	FREL	VNQI	Difference
Max Drawdown Largest peak-to-trough decline	-42.61%	-38.35%	-4.26%
Max Drawdown (1Y) Largest decline over 1 year	-8.45%	-14.78%	+6.33%
Max Drawdown (3Y) Largest decline over 3 years	-17.54%	-16.35%	-1.19%
Max Drawdown (5Y) Largest decline over 5 years	-34.40%	-35.75%	+1.35%
Max Drawdown (10Y) Largest decline over 10 years	-42.61%	-38.35%	-4.26%
Current Drawdown Current decline from peak	-3.93%	-12.02%	+8.09%
Average Drawdown Average peak-to-trough decline	-9.95%	-10.89%	+0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	4.79%	-2.11%

Volatility

FREL vs. VNQI - Volatility Comparison

The current volatility for Fidelity MSCI Real Estate Index ETF (FREL) is 3.75%, while Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a volatility of 4.68%. This indicates that FREL experiences smaller price fluctuations and is considered to be less risky than VNQI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FREL	VNQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	4.68%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	9.27%	11.43%	-2.16%
Volatility (1Y) Calculated over the trailing 1-year period	13.17%	13.44%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.84%	15.50%	+3.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.67%	16.06%	+4.61%

FREL vs. VNQI - Expense Ratio Comparison

FREL has a 0.08% expense ratio, which is lower than VNQI's 0.12% 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. VNQI - Dividend Comparison

FREL's dividend yield for the trailing twelve months is around 3.34%, less than VNQI's 4.83% 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%
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.83%	4.70%	5.16%	3.74%	0.57%	6.48%	0.93%	7.58%	4.62%	3.86%	5.18%	2.86%

Frequently Asked Questions

Can I hold both FREL and VNQI in my portfolio?

FREL and VNQI have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FREL or VNQI?

VNQI has higher volatility (4.68%) compared to FREL (3.75%). In terms of maximum drawdown, FREL dropped -42.61% vs VNQI's -38.35%.

Which ETF is better, FREL or VNQI?

On 10-year performance, FREL leads with 5.67% vs 2.23% for VNQI. 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 VNQI?

Over the 10-year period, FREL has performed better with a 5.67% return vs 2.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FREL or VNQI?

FREL is cheaper with a 0.08% expense ratio, compared with 0.12% for VNQI.

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

VNQI has the higher dividend yield at 4.83%, compared with 3.34% for FREL.

What is the main difference between FREL and VNQI?

FREL tracks MSCI USA IMI Real Estate Index, while VNQI tracks S&P Global ex-U.S. Property Index. They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.08% for FREL and 0.12% for VNQI.

Which has better risk-adjusted returns?

FREL currently has the higher Sharpe Ratio (0.75 vs 0.41), 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.