FRI vs. REAI

Last updated Jun 24, 2026

FRI (First Trust S&P REIT Index Fund) and REAI (Intelligent Real Estate ETF) are both REIT funds. FRI is passively managed, while REAI is actively managed. Over the past 3 years, FRI returned 13.61%/yr vs 7.38%/yr for REAI. Their correlation of 0.87 suggests significant overlap in exposure. FRI charges 0.50%/yr vs 0.59%/yr for REAI.

Performance

FRI vs. REAI - Performance Comparison

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

Returns By Period

In the year-to-date period, FRI achieves a 16.71% return, which is significantly higher than REAI's 14.97% return.

FRI

• 1D: 1.36%
• 1M: 1.57%
• YTD: 16.71%
• 6M: 17.19%
• 1Y: 17.99%
• 3Y*: 13.61%
• 5Y*: 5.21%
• 10Y*: 5.93%

REAI

• 1D: 0.41%
• 1M: -0.63%
• YTD: 14.97%
• 6M: 15.33%
• 1Y: 11.93%
• 3Y*: 7.38%
• 5Y*: —
• 10Y*: —

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

FRI vs. REAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FRI First Trust S&P REIT Index Fund	16.71%	2.80%	7.84%	9.39%
REAI Intelligent Real Estate ETF	14.97%	-6.08%	8.00%	1.59%

Correlation

The correlation between FRI and REAI is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jun 13, 2023	0.87

The correlation between FRI and REAI shifts across timeframes, from 0.75 (1 year) to 0.87 (all time), reflecting how their relationship changes across market environments.

Return for Risk

FRI vs. REAI — Risk / Return Rank

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

FRI

FRI Risk / Return Rank: 42
FRI Sharpe Ratio Rank: 40
FRI Sortino Ratio Rank: 37
FRI Omega Ratio Rank: 36
FRI Calmar Ratio Rank: 52
FRI Martin Ratio Rank: 48

REAI

REAI Risk / Return Rank: 23
REAI Sharpe Ratio Rank: 23
REAI Sortino Ratio Rank: 22
REAI Omega Ratio Rank: 21
REAI Calmar Ratio Rank: 24
REAI Martin Ratio Rank: 23

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.

FRI vs. REAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust S&P REIT Index Fund (FRI) and Intelligent Real Estate ETF (REAI). 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.

	FRI	REAI	Difference
Sharpe ratio: Return per unit of total volatility	1.32	0.77	+0.55
Sortino ratio: Return per unit of downside risk	1.83	1.14	+0.69
Omega ratio: Gain probability vs. loss probability	1.23	1.14	+0.09
Calmar ratio: Return relative to maximum drawdown	2.39	1.08	+1.31
Martin ratio: Return relative to average drawdown	7.53	2.75	+4.77

FRI vs. REAI - Sharpe Ratio Comparison

The current FRI Sharpe Ratio is 1.32, which is higher than the REAI Sharpe Ratio of 0.77. The chart below compares the historical Sharpe Ratios of FRI and REAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FRI vs. REAI - Drawdown Comparison

The maximum FRI drawdown since its inception was -71.95%, which is greater than REAI's maximum drawdown of -22.29%. Use the drawdown chart below to compare losses from any high point for FRI and REAI.

Drawdown Indicators

	FRI	REAI	Difference
Max Drawdown Largest peak-to-trough decline	-71.95%	-22.29%	-49.66%
Max Drawdown (1Y) Largest decline over 1 year	-7.57%	-11.08%	+3.51%
Max Drawdown (3Y) Largest decline over 3 years	-18.90%	-22.29%	+3.39%
Max Drawdown (5Y) Largest decline over 5 years	-31.21%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.16%	—	—
Current Drawdown Current decline from peak	-0.25%	-2.14%	+1.89%
Average Drawdown Average peak-to-trough decline	-13.67%	-7.21%	-6.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.40%	4.34%	-1.94%

Volatility

FRI vs. REAI - Volatility Comparison

First Trust S&P REIT Index Fund (FRI) has a higher volatility of 5.30% compared to Intelligent Real Estate ETF (REAI) at 3.84%. This indicates that FRI's price experiences larger fluctuations and is considered to be riskier than REAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRI	REAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.30%	3.84%	+1.46%
Volatility (6M) Calculated over the trailing 6-month period	9.99%	10.64%	-0.65%
Volatility (1Y) Calculated over the trailing 1-year period	13.70%	15.59%	-1.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.69%	18.00%	+0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.10%	18.00%	+3.10%

FRI vs. REAI - Expense Ratio Comparison

FRI has a 0.50% expense ratio, which is lower than REAI's 0.59% expense ratio.

Dividends

FRI vs. REAI - Dividend Comparison

FRI's dividend yield for the trailing twelve months is around 2.49%, less than REAI's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRI First Trust S&P REIT Index Fund	2.49%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%
REAI Intelligent Real Estate ETF	3.22%	4.52%	3.34%	1.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FRI and REAI in my portfolio?

FRI and REAI have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRI or REAI?

FRI has higher volatility (5.30%) compared to REAI (3.84%). In terms of maximum drawdown, FRI dropped -71.95% vs REAI's -22.29%.

Which ETF is better, FRI or REAI?

On 3-year performance, FRI leads with 13.61% vs 7.38% for REAI. On fees, FRI is cheaper at 0.50% per year. On volatility, REAI has been the lower-risk option at 3.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRI or REAI?

Over the 3-year period, FRI has performed better with a 13.61% return vs 7.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRI or REAI?

FRI is cheaper with a 0.50% expense ratio, compared with 0.59% for REAI.

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

REAI has the higher dividend yield at 3.22%, compared with 2.49% for FRI.

What is the main difference between FRI and REAI?

They also come from different issuers: First Trust and Armada ETF Advisors. Their fees differ too: 0.50% for FRI and 0.59% for REAI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.32 vs 0.77), 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.