REM vs. FREL

Last updated Jun 4, 2026

REM (iShares Mortgage Real Estate ETF) and FREL (Fidelity MSCI Real Estate Index ETF) are both REIT funds - REM tracks the FTSE NAREIT All Mortgage Capped Index while FREL tracks the MSCI USA IMI Real Estate Index. Both are passively managed. Over the past 10 years, REM returned 2.55%/yr vs 5.67%/yr for FREL. A 0.62 correlation means they provide meaningful diversification when combined. REM charges 0.48%/yr vs 0.08%/yr for FREL.

Performance

REM vs. FREL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Mortgage Real Estate ETF (REM) and Fidelity MSCI Real Estate Index ETF (FREL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, REM achieves a -2.10% return, which is significantly lower than FREL's 7.59% return. Over the past 10 years, REM has underperformed FREL with an annualized return of 2.55%, while FREL has yielded a comparatively higher 5.67% annualized return.

REM

• 1D: -1.24%
• 1M: -4.86%
• YTD: -2.10%
• 6M: -2.10%
• 1Y: 11.53%
• 3Y*: 8.00%
• 5Y*: -2.48%
• 10Y*: 2.55%

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%

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

REM vs. FREL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
REM iShares Mortgage Real Estate ETF	-2.10%	13.30%	-1.00%	14.43%	-27.56%	16.14%	-19.99%	21.34%	-3.09%	18.43%
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%

Correlation

The correlation between REM and FREL is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Feb 6, 2015	0.62

The correlation between REM and FREL has been stable across timeframes, ranging from 0.62 to 0.68 - a consistent structural relationship.

REM vs. FREL - Sectors Allocation Comparison

Sectors	REM	FREL
Real Estate	97.2%	97.6%
Financial Services	2.4%	0.0%
Basic Materials	-	1.2%
Communication Services	-	0.4%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Healthcare	-	-
Industrials	-	-
Technology	-	0.3%
Utilities	-	-

Return for Risk

REM vs. FREL — Risk / Return Rank

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

REM

REM Risk / Return Rank: 20
REM Sharpe Ratio Rank: 20
REM Sortino Ratio Rank: 20
REM Omega Ratio Rank: 19
REM Calmar Ratio Rank: 19
REM Martin Ratio Rank: 20

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

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.

REM vs. FREL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Mortgage Real Estate ETF (REM) and Fidelity MSCI Real Estate Index ETF (FREL). 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.

	REM	FREL	Difference
Sharpe ratio: Return per unit of total volatility	0.69	0.75	-0.06
Sortino ratio: Return per unit of downside risk	1.04	1.10	-0.05
Omega ratio: Gain probability vs. loss probability	1.13	1.14	-0.01
Calmar ratio: Return relative to maximum drawdown	0.81	1.17	-0.35
Martin ratio: Return relative to average drawdown	2.33	3.67	-1.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REM vs. FREL - Sharpe Ratio Comparison

The current REM Sharpe Ratio is 0.69, which is comparable to the FREL Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of REM and FREL, 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

	REM	FREL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.69	0.75	-0.06
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	0.09	0.28	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	-0.05	0.25	-0.30

Drawdowns

REM vs. FREL - Drawdown Comparison

The maximum REM drawdown since its inception was -74.73%, which is greater than FREL's maximum drawdown of -42.61%. Use the drawdown chart below to compare losses from any high point for REM and FREL.

Drawdown Indicators

	REM	FREL	Difference
Max Drawdown Largest peak-to-trough decline	-74.73%	-42.61%	-32.12%
Max Drawdown (1Y) Largest decline over 1 year	-14.25%	-8.45%	-5.80%
Max Drawdown (3Y) Largest decline over 3 years	-21.91%	-17.54%	-4.37%
Max Drawdown (5Y) Largest decline over 5 years	-43.31%	-34.40%	-8.91%
Max Drawdown (10Y) Largest decline over 10 years	-68.52%	-42.61%	-25.91%
Current Drawdown Current decline from peak	-23.85%	-3.93%	-19.92%
Average Drawdown Average peak-to-trough decline	-38.35%	-9.95%	-28.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.95%	2.68%	+2.27%

Volatility

REM vs. FREL - Volatility Comparison

iShares Mortgage Real Estate ETF (REM) and Fidelity MSCI Real Estate Index ETF (FREL) have volatilities of 3.81% and 3.75%, 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.

Volatility by Period

	REM	FREL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	3.75%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	13.01%	9.27%	+3.74%
Volatility (1Y) Calculated over the trailing 1-year period	16.85%	13.17%	+3.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.57%	18.84%	+4.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.27%	20.67%	+7.60%

REM vs. FREL - Expense Ratio Comparison

REM has a 0.48% expense ratio, which is higher than FREL's 0.08% expense ratio.

Dividends

REM vs. FREL - Dividend Comparison

REM's dividend yield for the trailing twelve months is around 9.19%, more than FREL's 3.34% 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%
REM iShares Mortgage Real Estate ETF	9.19%	8.70%	9.61%	9.46%	11.13%	7.29%	7.72%	8.16%	10.00%	9.97%	10.03%	11.99%

Frequently Asked Questions

Can I hold both REM and FREL in my portfolio?

REM and FREL have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REM or FREL?

REM has higher volatility (3.81%) compared to FREL (3.75%). In terms of maximum drawdown, REM dropped -74.73% vs FREL's -42.61%.

Which ETF is better, REM or FREL?

On 10-year performance, FREL leads with 5.67% vs 2.55% for REM. 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.

Which ETF has performed better, REM or FREL?

Over the 10-year period, FREL has performed better with a 5.67% return vs 2.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REM or FREL?

FREL is cheaper with a 0.08% expense ratio, compared with 0.48% for REM.

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

REM has the higher dividend yield at 9.19%, compared with 3.34% for FREL.

What is the main difference between REM and FREL?

REM tracks FTSE NAREIT All Mortgage Capped Index, while FREL tracks MSCI USA IMI Real Estate Index. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.48% for REM and 0.08% for FREL.

Which has better risk-adjusted returns?

FREL currently has the higher Sharpe Ratio (0.75 vs 0.69), 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.