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FREL - AI Analysis
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Fidelity MSCI Real Estate Index ETF (FREL)
Rating:70Outperform
Price Target:
$30.00
Positive Factors
Strong Top Holdings
Several key holdings, such as Prologis and Welltower, have delivered strong year-to-date performance, supporting the fund’s overall returns.
Low Expense Ratio
The ETF has a very low expense ratio, making it a cost-effective choice for investors.
Focused Sector Exposure
The ETF’s heavy focus on real estate provides targeted exposure to a sector with stable income potential.
Negative Factors
Over-Concentration in Real Estate
Nearly all of the fund’s assets are tied to the real estate sector, which limits diversification and increases vulnerability to sector-specific risks.
Weak Performance of Some Holdings
Certain top holdings, such as Equinix and Digital Realty, have underperformed year-to-date, dragging on overall returns.
Minimal Geographic Diversification
The ETF is almost entirely invested in U.S.-based companies, leaving it exposed to domestic economic risks.
FREL vs. SPDR S&P 500 ETF (SPY)
AUM1.08B
RegionNorth America
Expense Ratio0.08%
Beta0.63
IssuerFidelity
Inception DateFeb 02, 2015
Dividend Yield3.62%
Asset ClassEquity
Index TrackedMSCI US IMI/Real Estate 25-25
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume176,086
30 Day Avg. Volume177,131
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
31.00Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering142
FREL Summary
The Fidelity MSCI Real Estate Index ETF (FREL) is an investment fund that focuses on the U.S. real estate sector by tracking the MSCI USA IMI Real Estate 25/50 Index. It includes a mix of real estate companies and REITs (real estate investment trusts) that own or manage properties like offices, warehouses, and apartments. Some of its top holdings are Prologis and Welltower, both well-known names in the real estate industry. Investors might consider FREL for portfolio diversification and potential income through dividends. However, since it is heavily tied to the real estate market, its performance can be affected by changes in property values and economic conditions.
How much will it cost me?The Fidelity MSCI Real Estate Index ETF (FREL) has an expense ratio of 0.084%, meaning you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it’s passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The FREL ETF, focused on U.S. real estate, could benefit from rising demand for residential, commercial, and industrial properties, as well as potential growth in REITs due to favorable economic conditions or inflation hedging. However, it may face challenges from higher interest rates, which can increase borrowing costs for real estate companies, or economic slowdowns that reduce property values and rental income. Key holdings like Prologis and American Tower are also sensitive to sector-specific trends, such as e-commerce growth or telecom infrastructure demand.
FREL Top 10 Holdings
The Fidelity MSCI Real Estate Index ETF (FREL) is deeply rooted in the U.S. real estate sector, with REITs like Prologis and Welltower leading the charge. Prologis is rising steadily, fueled by strong leasing activity and expansion, while Welltower’s robust revenue growth and strategic investments add momentum. However, American Tower and Digital Realty are lagging, weighed down by valuation concerns and technical weaknesses. The fund’s concentrated exposure to real estate provides a focused play on the sector, but mixed performance among top holdings highlights the challenges of navigating this dynamic market.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Prologis | 7.86% | $84.66M | $117.46B | 6.56% | 79 Outperform | |
| Welltower | 7.19% | $77.42M | $121.45B | 27.82% | 77 Outperform | |
| American Tower | 5.77% | $62.08M | $83.84B | -16.11% | 65 Neutral | |
| Equinix | 4.64% | $49.91M | $78.07B | -12.36% | 75 Outperform | |
| Digital Realty | 3.92% | $42.20M | $57.00B | -8.25% | 69 Neutral | |
| Simon Property | 3.91% | $42.12M | $56.69B | 0.91% | 74 Outperform | |
| Realty Income | 3.53% | $38.04M | $53.36B | -3.50% | 77 Outperform | |
| CBRE Group | 3.23% | $34.83M | $45.45B | 15.67% | 69 Neutral | |
| Public Storage | 3.20% | $34.49M | $50.74B | -13.89% | 71 Outperform | |
| Crown Castle | 2.80% | $30.19M | $40.20B | -14.37% | 46 Neutral |
FREL Technical Analysis
Negative
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Price Trends
27.61
Negative
27.31
Negative
26.93
Positive
Market Momentum
-0.02
Positive
39.53
Neutral
12.71
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FREL, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 27.53, equal to the 50-day MA of 27.61, and equal to the 200-day MA of 26.93, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 12.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FREL.
FREL Peer Comparison
Comparison Results
Performance Comparison
FREL
Fidelity MSCI Real Estate Index ETF
27.00
-0.21
-0.77%
SCHH
Schwab U.S. REIT ETF
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XLRE
Real Estate Select Sector SPDR Fund
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IYR
iShares U.S. Real Estate ETF
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USRT
iShares Core U.S. REIT ETF
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DFAR
Dimensional US Real Estate ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
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.Date of analysis: ―
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