FRI vs. VNQI

Last updated Jun 4, 2026

FRI (First Trust S&P REIT Index Fund) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are both REIT funds - FRI tracks the S&P United States REIT while VNQI tracks the S&P Global ex-U.S. Property Index. Both are passively managed. Over the past 10 years, FRI returned 5.62%/yr vs 2.23%/yr for VNQI. A 0.59 correlation means they provide meaningful diversification when combined. FRI charges 0.50%/yr vs 0.12%/yr for VNQI.

Performance

FRI vs. VNQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust S&P REIT Index Fund (FRI) 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, FRI achieves a 11.90% return, which is significantly higher than VNQI's -2.57% return. Over the past 10 years, FRI has outperformed VNQI with an annualized return of 5.62%, while VNQI has yielded a comparatively lower 2.23% annualized return.

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%

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)

FRI vs. VNQI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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 FRI and VNQI is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Nov 2, 2010	0.59

The correlation between FRI and VNQI has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.

FRI vs. VNQI - Sectors Allocation Comparison

Sectors	FRI	VNQI
Real Estate	96.2%	91.2%
Financial Services	2.3%	1.9%
Utilities	0.8%	0.1%
Basic Materials	-	0.3%
Communication Services	-	-
Consumer Cyclical	-	1.1%
Consumer Defensive	-	0.1%
Energy	-	0.3%
Healthcare	-	0.0%
Industrials	-	0.7%
Technology	-	0.2%

Return for Risk

FRI vs. VNQI — Risk / Return Rank

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

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

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.

FRI vs. VNQI - Risk-Adjusted Trends Comparison

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

	FRI	VNQI	Difference
Sharpe ratio Return per unit of total volatility	1.13	0.41	+0.73
Sortino ratio Return per unit of downside risk	1.59	0.67	+0.92
Omega ratio Gain probability vs. loss probability	1.20	1.08	+0.12
Calmar ratio Return relative to maximum drawdown	1.95	0.37	+1.58
Martin ratio Return relative to average drawdown	6.21	1.14	+5.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FRI vs. VNQI - Sharpe Ratio Comparison

The current FRI Sharpe Ratio is 1.13, which is higher than the VNQI Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of FRI 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

	FRI	VNQI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	0.41	+0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	-0.11	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.14	+0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.20	-0.02

Drawdowns

FRI vs. VNQI - Drawdown Comparison

The maximum FRI drawdown since its inception was -71.95%, which is greater than VNQI's maximum drawdown of -38.35%. Use the drawdown chart below to compare losses from any high point for FRI and VNQI.

Drawdown Indicators

	FRI	VNQI	Difference
Max Drawdown Largest peak-to-trough decline	-71.95%	-38.35%	-33.60%
Max Drawdown (1Y) Largest decline over 1 year	-7.57%	-14.78%	+7.21%
Max Drawdown (3Y) Largest decline over 3 years	-18.90%	-16.35%	-2.55%
Max Drawdown (5Y) Largest decline over 5 years	-31.21%	-35.75%	+4.54%
Max Drawdown (10Y) Largest decline over 10 years	-44.16%	-38.35%	-5.81%
Current Drawdown Current decline from peak	-3.24%	-12.02%	+8.78%
Average Drawdown Average peak-to-trough decline	-13.70%	-10.89%	-2.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.38%	4.79%	-2.41%

Volatility

FRI vs. VNQI - Volatility Comparison

The current volatility for First Trust S&P REIT Index Fund (FRI) is 3.93%, while Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a volatility of 4.68%. This indicates that FRI 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

	FRI	VNQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.93%	4.68%	-0.75%
Volatility (6M) Calculated over the trailing 6-month period	9.14%	11.43%	-2.29%
Volatility (1Y) Calculated over the trailing 1-year period	13.05%	13.44%	-0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.65%	15.50%	+3.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.06%	16.06%	+5.00%

FRI vs. VNQI - Expense Ratio Comparison

FRI has a 0.50% expense ratio, which is higher than VNQI's 0.12% expense ratio.

Dividends

FRI vs. VNQI - Dividend Comparison

FRI's dividend yield for the trailing twelve months is around 2.60%, less than VNQI's 4.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
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 FRI and VNQI in my portfolio?

FRI and VNQI have a correlation of 0.57, 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 VNQI?

VNQI has higher volatility (4.68%) compared to FRI (3.93%). In terms of maximum drawdown, FRI dropped -71.95% vs VNQI's -38.35%.

Which ETF is better, FRI or VNQI?

On 10-year performance, FRI leads with 5.62% vs 2.23% for VNQI. On fees, VNQI is cheaper at 0.12% per year. On volatility, FRI has been the lower-risk option at 3.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRI or VNQI?

Over the 10-year period, FRI has performed better with a 5.62% return vs 2.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRI or VNQI?

VNQI is cheaper with a 0.12% expense ratio, compared with 0.50% for FRI.

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

VNQI has the higher dividend yield at 4.83%, compared with 2.60% for FRI.

What is the main difference between FRI and VNQI?

FRI tracks S&P United States REIT, while VNQI tracks S&P Global ex-U.S. Property Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.50% for FRI and 0.12% for VNQI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.13 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.