FREL vs SPY
FREL vs SPY
Fidelity MSCI Real Estate Index ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
FREL has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FREL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.09% | |
| AUM | $1.5B | $789.1B | |
| Dividend Yield | 3.29% | 1.01% | |
| Holdings | 130 | 505 | |
| YTD Return | +13.87% | +13.28% | |
| 1Y Return | +13.65% | +23.94% | |
| 3Y Return (annualized) | +9.85% | +21.07% | |
| 5Y Return (annualized) | +2.26% | +13.27% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -43.5% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2015 | Jan 22, 1993 |
FREL vs SPY Performance
Fidelity MSCI Real Estate Index ETF (FREL) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FREL returned +13.65% while SPY returned +23.94%. Year to date, FREL is up 13.87% versus a gain of 13.28% for SPY.
Over three years, FREL compounded at +9.85% per year against +21.07% for SPY; over five years the annualized figures are +2.26% and +13.27% respectively. Across the full 12-year window we track, SPY has the edge at +8.84% annualized vs +3.40%. 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $8 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, FREL currently yields 3.29% against 1.01% for SPY.
Holdings Overlap
FREL and SPY share 31 holdings out of 599 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FREL | Weight in SPY | Difference |
|---|---|---|---|
| WELL | 8.42% | 0.25% | 8.17% |
| PLD | 8.09% | 0.20% | 7.89% |
| 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 SPY 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 SPY?
FREL has an expense ratio of 0.08% while SPY charges 0.09%. FREL is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, FREL or SPY?
Over the past year FREL returned +13.65% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +3.40% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FREL or SPY?
FREL has been the more volatile fund at 17.2% annualized versus 15.3% for SPY. Worst drawdown: FREL -43.5% vs SPY -56.5%.
Should I hold both FREL and SPY?
FREL and SPY 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 SPY?
FREL and SPY share 31 common holdings with a 1.8% weight overlap. Combined, they hold 599 unique securities.
Which pays a higher dividend, FREL or SPY?
FREL yields 3.29% while SPY yields 1.01%, so FREL currently pays the higher dividend yield.
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