VNQ vs. FREL
Compare and contrast key facts about Vanguard Real Estate ETF (VNQ) and Fidelity MSCI Real Estate Index ETF (FREL).
VNQ and FREL are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. FREL is a passively managed fund by Fidelity that tracks the performance of the MSCI USA IMI Real Estate Index. It was launched on Feb 2, 2015. Both VNQ and FREL are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VNQ or FREL.
Key characteristics
| VNQ | FREL | |
|---|---|---|
| YTD Return | -9.03% | -8.95% |
| 1Y Return | 0.88% | 0.85% |
| 3Y Return (Ann) | -3.08% | -3.11% |
| 5Y Return (Ann) | 2.16% | 2.10% |
| Sharpe Ratio | 0.05 | 0.05 |
| Daily Std Dev | 19.00% | 18.89% |
| Max Drawdown | -73.07% | -42.61% |
| Current Drawdown | -24.96% | -24.92% |
Correlation
The correlation between VNQ and FREL is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VNQ vs. FREL - Performance Comparison
The year-to-date returns for both investments are quite close, with VNQ having a -9.03% return and FREL slightly higher at -8.95%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VNQ vs. FREL - Expense Ratio Comparison
VNQ has a 0.12% expense ratio, which is higher than FREL's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VNQ vs. FREL - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) 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.
Dividends
VNQ vs. FREL - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 4.34%, more than FREL's 3.81% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 4.34% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
FREL Fidelity MSCI Real Estate Index ETF | 3.81% | 3.73% | 3.57% | 2.34% | 3.77% | 3.32% | 5.54% | 3.27% | 4.01% | 3.79% | 0.00% | 0.00% |
Drawdowns
VNQ vs. FREL - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than FREL's maximum drawdown of -42.61%. Use the drawdown chart below to compare losses from any high point for VNQ and FREL. For additional features, visit the drawdowns tool.
Volatility
VNQ vs. FREL - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Fidelity MSCI Real Estate Index ETF (FREL) have volatilities of 6.71% and 6.43%, 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.