FREL vs IVV
FREL vs IVV
Fidelity MSCI Real Estate Index ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FREL | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $1.5B | $865.2B | |
| Dividend Yield | 3.29% | 1.09% | |
| Holdings | 130 | 508 | |
| YTD Return | +13.91% | +13.52% | |
| 1Y Return | +14.19% | +23.63% | |
| 3Y Return (annualized) | +9.87% | +21.26% | |
| 5Y Return (annualized) | +2.50% | +13.52% | |
| Volatility (annualized) | 17.2% | 15.1% | |
| Max Drawdown | -43.5% | -56.5% | |
| Fund Family | Fidelity Investments (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2015 | May 15, 2000 |
FREL vs IVV Performance
Fidelity MSCI Real Estate Index ETF (FREL) is a ETF from Fidelity Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FREL returned +14.19% while IVV returned +23.63%. Year to date, FREL is up 13.91% versus a gain of 13.52% for IVV.
Over three years, FREL compounded at +9.87% per year against +21.26% for IVV; over five years the annualized figures are +2.50% and +13.52% respectively. Across the full 12-year window we track, IVV has the edge at +7.04% annualized vs +3.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -43.5% for FREL and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FREL charges 0.08% per year while IVV charges 0.03%. On a $10,000 position that is $8 vs $3 annually, a gap of $5 per year that compounds over a long holding period. On income, FREL currently yields 3.29% against 1.09% for IVV.
Holdings Overlap
FREL and IVV share 31 holdings out of 601 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FREL | Weight in IVV | Difference |
|---|---|---|---|
| WELL | 8.42% | 0.27% | 8.15% |
| PLD | 8.09% | 0.22% | 7.87% |
| AMT | 5.37% | 0.12% | 5.25% |
| EQIX | Pro | Pro | Pro |
| SPG | Pro | Pro | Pro |
| DLR | Pro | Pro | Pro |
| O | Pro | Pro | Pro |
| PSA | Pro | Pro | Pro |
| CBRE | Pro | Pro | Pro |
| VTR | Pro | Pro | Pro |
See all 10 holdings FREL shares with IVV Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FREL or IVV?
FREL has an expense ratio of 0.08% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, FREL or IVV?
Over the past year FREL returned +14.19% vs +23.63% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +3.41% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, FREL or IVV?
FREL has been the more volatile fund at 17.2% annualized versus 15.1% for IVV. Worst drawdown: FREL -43.5% vs IVV -56.5%.
Should I hold both FREL and IVV?
FREL and IVV have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FREL and IVV?
FREL and IVV share 31 common holdings with a 1.9% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, FREL or IVV?
FREL yields 3.29% while IVV yields 1.09%, so FREL currently pays the higher dividend yield.
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