FREL - ETF AI Analysis
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Fidelity MSCI Real Estate Index ETF (FREL)
FREL, the Fidelity MSCI Real Estate Index ETF, earns a solid overall rating largely because its biggest holdings like Welltower and Prologis show strong financial performance and clear growth strategies in key real estate segments. At the same time, several other major positions such as Equinix, Public Storage, and Realty Income face bearish technical trends or potential overvaluation, which temper the fund’s appeal. The main risk is its concentrated exposure to the real estate sector, meaning market or economic pressures on property values and rents can affect many of its holdings at once.
FREL vs. SPDR S&P 500 ETF (SPY)
- AUM
- 1.40B
- Region
- North America
- Expense Ratio
- 0.08%
- Beta
- 0.48
- Issuer
- Fidelity
- Inception Date
- Feb 02, 2015
- Dividend Yield
- 3.41%
- Asset Class
- Equity
- Index Tracked
- MSCI US IMI/Real Estate 25-25
FREL Summary
FREL is the Fidelity MSCI Real Estate Index ETF, which follows the MSCI USA IMI Real Estate 25/50 Index. It invests mainly in U.S. real estate companies and REITs, including well-known names like Prologis and American Tower. These companies own or manage properties such as warehouses, data centers, shopping malls, and apartments. Investors might consider FREL for diversification and potential income from real estate-related dividends, without having to buy individual properties or stocks. A key risk is that real estate values and stock prices can go up and down with the broader market and interest rate changes.
How much will it cost me?
FREL has an annual expense ratio of 0.084%, which means you’ll pay about $0.84 per year for every $1,000 invested. This cost is lower than the average ETF because FREL is a passively managed fund that simply tracks a real estate index instead of paying managers to pick individual stocks.
What would affect this ETF?
FREL is heavily focused on U.S. real estate, so it could benefit from lower interest rates, steady economic growth, and strong demand for properties like data centers, cell towers, and healthcare facilities held by companies such as Prologis, Equinix, and Welltower. On the downside, higher interest rates, weaker consumer spending that hurts malls and retail properties like Simon Property, or regulatory changes affecting REITs and commercial real estate could weigh on future performance.
FREL Top 10 Holdings
FREL is a pure U.S. real estate play, and a handful of big REITs are steering the ship. Data-center names like Equinix and Digital Realty have been rising this year, giving the fund a tech-flavored boost within the real estate world. American Tower and Public Storage are also adding steady support, helping offset weakness in more traditional property plays. On the other side, industrial giant Prologis and healthcare-focused Welltower have been lagging lately, while Realty Income has lost some steam, showing that not all corners of the REIT market are moving in sync.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 WELL | Welltower | 9.54% | $133.20M | $172.10B | 29.70% | 77Outperform |
 PLD | Prologis | 7.32% | $102.18M | $124.09B | 3.02% | 76Outperform |
 EQIX | Equinix | 5.63% | $78.65M | $100.34B | 21.67% | 73Outperform |
 AMT | American Tower | 4.84% | $67.58M | $87.09B | 4.64% | 71Outperform |
 SPG | Simon Property | 4.56% | $63.68M | $70.46B | 25.61% | 70Outperform |
 DLR | Digital Realty | 4.05% | $56.52M | $67.04B | 5.83% | 69Neutral |
 PSA | Public Storage | 3.54% | $49.48M | $60.68B | 15.63% | 73Outperform |
 O | Realty Income | 3.44% | $47.98M | $53.87B | -1.69% | 70Outperform |
 VMRK | Vivmark Residential | 2.97% | $41.46M | $47.90B | 2.64% | 70Outperform |
 VTR | Ventas | 2.56% | $35.78M | $45.81B | 14.04% | 68Neutral |
FREL Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FREL, the sentiment is Positive. The current price of 28.50 is above the 20-day moving average (MA) of 27.74, above the 50-day MA of 28.16, and above the 200-day MA of 28.32, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FREL.
FREL Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FREL | $28.50 | $31.00(8.77% Upside) | $1.40B | 0.08% | 69Neutral |
 XLRE | $43.17 | $49.24(14.07% Upside) | $8.19B | 0.08% | 69Neutral |
 USRT | $63.77 | $72.11(13.08% Upside) | $4.30B | 0.08% | 69Neutral |
 IYR | $99.66 | $113.66(14.04% Upside) | $4.02B | 0.37% | 70Neutral |
 ICF | $66.62 | $75.30(13.02% Upside) | $1.98B | 0.32% | 70Neutral |
 DFAR | $25.41 | $28.50(12.16% Upside) | $1.75B | 0.19% | 69Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FREL | Fidelity MSCI Real Estate Index ETF | 28.50 | 2.38 | 9.13% | |
| XLRE | Real Estate Select Sector SPDR Fund | 43.17 | 3.73 | 9.46% | |
| USRT | iShares Core U.S. REIT ETF | 63.77 | 7.70 | 13.74% | |
| IYR | iShares U.S. Real Estate ETF | 99.66 | 7.36 | 7.98% | |
| ICF | iShares Cohen & Steers REIT ETF | 66.62 | 7.78 | 13.23% | |
| DFAR | Dimensional US Real Estate ETF | 25.41 | 2.95 | 13.12% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.