FREL vs SPY
Fidelity MSCI Real Estate Index ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FREL or SPY?
All Cap Blend against Large Cap Blend.
FREL has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 48.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FREL | SPY |
|---|---|---|
| Expense Ratio | 0.08%Best | 0.09% |
| AUM | $1.5B | $804.7B |
| Dividend Yield | 3.27% | 0.98% |
| Holdings | 126 | 505 |
| YTD Return | +7.70% | +12.22%Best |
| 1Y Return | +5.30% | +16.97%Best |
| 3Y Return (annualized) | +9.10% | +21.16%Best |
| 5Y Return (annualized) | +1.27% | +13.00%Best |
| Volatility (annualized) | 17.1% | 15.0%Best |
| Max Drawdown | -43.5% | -34.1%Best |
| $10,000 over 5 years | $10,651 | $18,424Best |
| Top 10 Weight | 48.5% | 37.8%Best |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Blend |
| Inception | Feb 2, 2015 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Feb 5, 2015 to Sep 17, 2026 (11.6 years).
FREL vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.6 years both funds cover.
FREL vs SPY Performance
Fidelity MSCI Real Estate Index ETF (FREL) is an ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FREL returned +5.30% while SPY returned +16.97%. Year to date, FREL is up 7.70% versus a gain of 12.22% for SPY.
Over three years, FREL compounded at +9.10% per year against +21.16% for SPY; over five years the annualized figures are +1.27% and +13.00% respectively. Across the full 12-year window we track, SPY has the edge at +12.64% annualized vs +2.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 15.0% 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.27% against 0.98% for SPY.
Holdings Overlap
73.2% of FREL's money is in holdings SPY also owns. 1.8% of SPY's money is in holdings FREL also owns.
Most of FREL is already inside SPY. Owning both mostly buys the same companies twice.
30 positions in common, counted across the 123 positions we hold weights for in FREL and 504 in SPY, against full books of 126 and 505.
What only one of them owns
Measured across the 123 and 504 positions we hold weights for.
SPY holds 467 positions FREL does not, 97.5% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, AMZN 3.79%, GOOGL 2.99%
Top Shared Holdings
| Stock | Weight in FREL | Weight in SPY | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 9.43% | 0.26% | 9.17% |
| PLDPrologis Inc | 7.81% | 0.20% | 7.61% |
| EQIXEquinix Inc. Real Estate Investment Trust | 5.54% | 0.15% | 5.39% |
| AMTAmerican Tower Corporation | 4.56% | 0.12% | 4.44% |
| SPGSimon Property Group Inc | 4.38% | 0.10% | 4.28% |
| DLRDigital Realty Trust Inc. | 4.00% | 0.10% | 3.90% |
| ORealty Income Corp. | 3.59% | 0.09% | 3.50% |
| PSAPublic Storage | 3.34% | 0.08% | 3.26% |
| EQRVivmark Residential | 3.06% | 0.07% | 2.99% |
| CBRECbre Services Inc | 2.80% | 0.06% | 2.74% |
73.2% of FREL is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which performed better, FREL or SPY?
Over the past year FREL returned +5.30% vs +16.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +2.87% vs +12.64% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FREL or SPY?
FREL has been the more volatile fund at 17.1% annualized versus 15.0% for SPY. Worst drawdown: FREL -43.5% vs SPY -34.1%.
Should I hold both FREL and SPY?
FREL and SPY have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FREL and SPY?
73.2% of FREL's money is in holdings SPY also owns. 1.8% of SPY's is in holdings FREL also owns. They hold 30 positions in common, counted across the 123 positions we hold weights for in FREL and 504 in SPY.
Which pays a higher dividend, FREL or SPY?
FREL yields 3.27% while SPY yields 0.98%, so FREL currently pays the higher dividend yield.
Is SPY better than FREL?
FREL has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 48.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.