REZ vs. FRI

Last updated Jun 4, 2026

REZ (iShares Residential Real Estate ETF) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - REZ tracks the FTSE NAREIT All Residential Capped Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, REZ returned 6.37%/yr vs 5.62%/yr for FRI. Their correlation of 0.89 suggests significant overlap in exposure. REZ charges 0.48%/yr vs 0.50%/yr for FRI.

Performance

REZ vs. FRI - Performance Comparison

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

Returns By Period

In the year-to-date period, REZ achieves a 6.86% return, which is significantly lower than FRI's 11.90% return. Over the past 10 years, REZ has outperformed FRI with an annualized return of 6.37%, while FRI has yielded a comparatively lower 5.62% annualized return.

REZ

• 1D: 0.48%
• 1M: -1.45%
• YTD: 6.86%
• 6M: 3.65%
• 1Y: 9.32%
• 3Y*: 9.90%
• 5Y*: 3.98%
• 10Y*: 6.37%

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)

REZ vs. FRI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
REZ iShares Residential Real Estate ETF	6.86%	4.80%	12.73%	10.97%	-28.31%	47.86%	-6.62%	24.49%	3.89%	3.87%
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 REZ and FRI is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.89

The correlation between REZ and FRI has been stable across timeframes, ranging from 0.89 to 0.94 - a consistent structural relationship.

REZ vs. FRI - Sectors Allocation Comparison

Sectors	REZ	FRI
Real Estate	99.4%	96.2%
Financial Services	0.1%	2.3%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	0.8%

Return for Risk

REZ vs. FRI — Risk / Return Rank

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

REZ

REZ Risk / Return Rank: 20
REZ Sharpe Ratio Rank: 19
REZ Sortino Ratio Rank: 18
REZ Omega Ratio Rank: 18
REZ Calmar Ratio Rank: 23
REZ Martin Ratio Rank: 24

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

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.

REZ vs. FRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) 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.

	REZ	FRI	Difference
Sharpe ratio: Return per unit of total volatility	0.66	1.13	-0.48
Sortino ratio: Return per unit of downside risk	0.97	1.59	-0.62
Omega ratio: Gain probability vs. loss probability	1.12	1.20	-0.08
Calmar ratio: Return relative to maximum drawdown	1.07	1.95	-0.89
Martin ratio: Return relative to average drawdown	3.27	6.21	-2.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REZ vs. FRI - Sharpe Ratio Comparison

The current REZ Sharpe Ratio is 0.66, which is lower than the FRI Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of REZ 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.

Sharpe Ratios by Period

	REZ	FRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.66	1.13	-0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.21	0.24	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.27	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.18	+0.06

Drawdowns

REZ vs. FRI - Drawdown Comparison

The maximum REZ drawdown since its inception was -66.87%, smaller than the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for REZ and FRI.

Drawdown Indicators

	REZ	FRI	Difference
Max Drawdown Largest peak-to-trough decline	-66.87%	-71.95%	+5.08%
Max Drawdown (1Y) Largest decline over 1 year	-8.76%	-7.57%	-1.19%
Max Drawdown (3Y) Largest decline over 3 years	-18.39%	-18.90%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-35.05%	-31.21%	-3.84%
Max Drawdown (10Y) Largest decline over 10 years	-44.15%	-44.16%	+0.01%
Current Drawdown Current decline from peak	-4.21%	-3.24%	-0.97%
Average Drawdown Average peak-to-trough decline	-12.69%	-13.70%	+1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	2.38%	+0.48%

Volatility

REZ vs. FRI - Volatility Comparison

iShares Residential Real Estate ETF (REZ) has a higher volatility of 4.39% compared to First Trust S&P REIT Index Fund (FRI) at 3.93%. This indicates that REZ's price experiences larger fluctuations and is considered to be riskier than FRI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REZ	FRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.39%	3.93%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	10.66%	9.14%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	14.32%	13.05%	+1.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.91%	18.65%	+0.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.52%	21.06%	+0.46%

REZ vs. FRI - Expense Ratio Comparison

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

Dividends

REZ vs. FRI - Dividend Comparison

REZ's dividend yield for the trailing twelve months is around 2.15%, less than FRI's 2.60% 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%
REZ iShares Residential Real Estate ETF	2.15%	2.74%	2.26%	2.94%	3.37%	1.81%	3.17%	2.90%	3.63%	3.57%	5.55%	3.18%

Frequently Asked Questions

Can I hold both REZ and FRI in my portfolio?

With a correlation of 0.91, REZ and FRI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, REZ or FRI?

REZ has higher volatility (4.39%) compared to FRI (3.93%). In terms of maximum drawdown, REZ dropped -66.87% vs FRI's -71.95%.

Which ETF is better, REZ or FRI?

On 10-year performance, REZ leads with 6.37% vs 5.62% for FRI. On fees, REZ is cheaper at 0.48% 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, REZ or FRI?

Over the 10-year period, REZ has performed better with a 6.37% return vs 5.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REZ or FRI?

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

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

FRI has the higher dividend yield at 2.60%, compared with 2.15% for REZ.

What is the main difference between REZ and FRI?

REZ tracks FTSE NAREIT All Residential 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 REZ and 0.50% for FRI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.13 vs 0.66), 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.