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REM vs. FRI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

REM vs. FRI

Last updated Jun 4, 2026

REM (iShares Mortgage Real Estate ETF) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - REM tracks the FTSE NAREIT All Mortgage Capped Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, REM returned 2.55%/yr vs 5.62%/yr for FRI. A 0.63 correlation means they provide meaningful diversification when combined. REM charges 0.48%/yr vs 0.50%/yr for FRI.

Performance

REM vs. FRI - Performance Comparison

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

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Returns By Period

In the year-to-date period, REM achieves a -2.10% return, which is significantly lower than FRI's 11.90% return. Over the past 10 years, REM has underperformed FRI with an annualized return of 2.55%, while FRI has yielded a comparatively higher 5.62% 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%

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

REM vs. FRI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
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%

Correlation

The correlation between REM and FRI 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

0.67

Correlation (10Y)
Calculated over the trailing 10-year period

0.62

Correlation (All Time)
Calculated using the full available price history since May 11, 2007

0.63

The correlation between REM and FRI has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.

REM vs. FRI - Sectors Allocation Comparison

Sectors
REM
FRI

Real Estate

97.2%
96.2%

Financial Services

2.4%
2.3%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Healthcare

-

-

Industrials

-

-

Technology

-

-

Utilities

-

0.8%

Real Estate

REM
97.2%
FRI
96.2%

Financial Services

REM
2.4%
FRI
2.3%

Basic Materials

REM

-

FRI

-

Communication Services

REM

-

FRI

-

Consumer Cyclical

REM

-

FRI

-

Consumer Defensive

REM

-

FRI

-

Energy

REM

-

FRI

-

Healthcare

REM

-

FRI

-

Industrials

REM

-

FRI

-

Technology

REM

-

FRI

-

Utilities

REM

-

FRI
0.8%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Mortgage Real Estate ETF

First Trust S&P REIT Index Fund

Often compared with REM:
REM vs. MORTREM vs. VNQREM vs. REETREM vs. IYRREM vs. NLYREM vs. OREM vs. QQQ
Often compared with FRI:
FRI vs. IYRFRI vs. VNQFRI vs. ^TNXFRI vs. RWRFRI vs. VWUAXFRI vs. KBWYFRI vs. USRT

Return for Risk

REM vs. FRI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
REM
REM Risk / Return Rank: 2020
Overall Rank
REM Sharpe Ratio Rank: 2020
Sharpe Ratio Rank
REM Sortino Ratio Rank: 2020
Sortino Ratio Rank
REM Omega Ratio Rank: 1919
Omega Ratio Rank
REM Calmar Ratio Rank: 1919
Calmar Ratio Rank
REM Martin Ratio Rank: 2020
Martin Ratio Rank
FRI
FRI Risk / Return Rank: 3434
Overall Rank
FRI Sharpe Ratio Rank: 3131
Sharpe Ratio Rank
FRI Sortino Ratio Rank: 2929
Sortino Ratio Rank
FRI Omega Ratio Rank: 2929
Omega Ratio Rank
FRI Calmar Ratio Rank: 4040
Calmar Ratio Rank
FRI Martin Ratio Rank: 3939
Martin Ratio Rank
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. FRI - Risk-Adjusted Trends Comparison

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

REMFRIDifference
Sharpe ratioReturn per unit of total volatility
0.69
1.13

-0.44

Sortino ratioReturn per unit of downside risk
1.04
1.59

-0.54

Omega ratioGain probability vs. loss probability

1.13

1.20

-0.07

Calmar ratioReturn relative to maximum drawdown

0.81

1.95

-1.14

Martin ratioReturn relative to average drawdown

2.33

6.21

-3.88

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. FRI - Sharpe Ratio Comparison

The current REM Sharpe Ratio is 0.69, which is lower than the FRI Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of REM and FRI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

REMFRIDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.69

1.13

-0.44

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.11

0.24

-0.34

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.09

0.27

-0.18

Sharpe Ratio (All Time)

Calculated using the full available price history

-0.05

0.18

-0.23

Drawdowns

REM vs. FRI - Drawdown Comparison

The maximum REM drawdown since its inception was -74.73%, roughly equal to the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for REM and FRI.

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Drawdown Indicators

REMFRIDifference

Max Drawdown

Largest peak-to-trough decline

-74.73%

-71.95%

-2.78%

Max Drawdown (1Y)

Largest decline over 1 year

-14.25%

-7.57%

-6.68%

Max Drawdown (3Y)

Largest decline over 3 years

-21.91%

-18.90%

-3.01%

Max Drawdown (5Y)

Largest decline over 5 years

-43.31%

-31.21%

-12.10%

Max Drawdown (10Y)

Largest decline over 10 years

-68.52%

-44.16%

-24.36%

Current Drawdown

Current decline from peak

-23.85%

-3.24%

-20.61%

Average Drawdown

Average peak-to-trough decline

-38.35%

-13.70%

-24.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.95%

2.38%

+2.57%

Volatility

REM vs. FRI - Volatility Comparison

iShares Mortgage Real Estate ETF (REM) and First Trust S&P REIT Index Fund (FRI) have volatilities of 3.81% and 3.93%, 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.

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Volatility by Period

REMFRIDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.81%

3.93%

-0.12%

Volatility (6M)

Calculated over the trailing 6-month period

13.01%

9.14%

+3.87%

Volatility (1Y)

Calculated over the trailing 1-year period

16.85%

13.05%

+3.80%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

23.57%

18.65%

+4.92%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

28.27%

21.06%

+7.21%

REM vs. FRI - Expense Ratio Comparison

REM has a 0.48% expense ratio, which is lower than FRI's 0.50% expense ratio.

Dividends

REM vs. FRI - Dividend Comparison

REM's dividend yield for the trailing twelve months is around 9.19%, more than FRI's 2.60% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
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

REM and FRI 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.

FRI has higher volatility (3.93%) compared to REM (3.81%). In terms of maximum drawdown, REM dropped -74.73% vs FRI's -71.95%.

On 10-year performance, FRI leads with 5.62% vs 2.55% for REM. On fees, REM is cheaper at 0.48% per year. On volatility, REM has been the lower-risk option at 3.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, FRI has performed better with a 5.62% return vs 2.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

REM is cheaper with a 0.48% expense ratio, compared with 0.50% for FRI.

REM has the higher dividend yield at 9.19%, compared with 2.60% for FRI.

REM tracks FTSE NAREIT All Mortgage Capped Index, while FRI tracks S&P United States REIT. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.48% for REM and 0.50% for FRI.

FRI currently has the higher Sharpe Ratio (1.13 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.

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