FREL vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFRELVTIWinner
Expense Ratio0.08%0.03%
AUM$1.5B$663.5B
Dividend Yield3.29%1.07%
Holdings1303,543
YTD Return+13.87%+13.57%
1Y Return+13.65%+24.23%
3Y Return (annualized)+9.85%+20.73%
5Y Return (annualized)+2.26%+12.24%
Volatility (annualized)17.2%15.3%
Max Drawdown-43.5%-56.6%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 2, 2015May 24, 2001

FREL vs VTI Performance

Fidelity MSCI Real Estate Index ETF (FREL) is a ETF from Fidelity Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FREL returned +13.65% while VTI returned +24.23%. Year to date, FREL is up 13.87% versus a gain of 13.57% for VTI.

Over three years, FREL compounded at +9.85% per year against +20.73% for VTI; over five years the annualized figures are +2.26% and +12.24% respectively. Across the full 12-year window we track, VTI has the edge at +8.12% 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 VTI. 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 -56.6% for VTI. 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FREL charges 0.08% per year while VTI 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 1.07% for VTI.

Holdings Overlap

1.7%overlap

FREL and VTI share 88 holdings out of 2822 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FRELWeight in VTIDifference
WELL8.42%0.22%8.20%
PLD8.09%0.17%7.92%
AMT5.37%0.10%5.27%
EQIXProProPro
SPGProProPro
DLRProProPro
OProProPro
PSAProProPro
CBREProProPro
VTRProProPro
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Frequently Asked Questions

Which is cheaper, FREL or VTI?

FREL has an expense ratio of 0.08% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, FREL or VTI?

Over the past year FREL returned +13.65% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +3.40% vs +8.12% for VTI. Past performance does not guarantee future results.

Which is riskier, FREL or VTI?

FREL has been the more volatile fund at 17.2% annualized versus 15.3% for VTI. Worst drawdown: FREL -43.5% vs VTI -56.6%.

Should I hold both FREL and VTI?

FREL and VTI have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FREL and VTI?

FREL and VTI share 88 common holdings with a 1.7% weight overlap. Combined, they hold 2822 unique securities.

Which pays a higher dividend, FREL or VTI?

FREL yields 3.29% while VTI yields 1.07%, so FREL currently pays the higher dividend yield.

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