FREL VS VNQ
3 min read
By Beqa Bumbeishvili, ETF Insider

FREL VS VNQ

Real Estate Exchange-Traded Funds (ETFs) have become a popular choice for investors seeking exposure to the property market without the need to buy physical assets. In this piece, we will conduct an in-depth comparison between two renowned Real Estate ETFs: FREL (Fidelity MSCI Real Estate Index ETF) and VNQ (Vanguard Real Estate ETF). Our exploration will encompass the tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

FREL VS VNQ: Overview

Both FREL and VNQ are designed to offer investors an avenue into the real estate sector, albeit with different strategies. FREL aims to track the MSCI USA IMI Real Estate Index, while VNQ seeks to follow the MSCI US Investable Market Real Estate 25/50 Index. These distinct indices result in varied portfolio compositions and investment outcomes, which we will delve into in subsequent sections.

FREL VS VNQ: Sectors and Top Holdings

FREL's portfolio is diversified across various real estate sectors, including residential, commercial, and specialized real estate. Its top holdings include renowned companies like American Tower Corp and Prologis. On the other hand, VNQ's portfolio is also diversified, with major holdings in companies like Vanguard Real Estate II and Simon Property Group. Recognizing the sectors and top holdings is crucial for investors to align with their investment objectives and risk appetite.

FREL overlap FREL VS VNQFREL overlap FREL VS VNQ

FREL VS VNQ: Capitalization and Strategy

FREL boasts a commendable asset under management (AUM), indicating its preference among investors eager to tap into the real estate market. VNQ, with its unique strategy, focuses on capturing the broad US real estate sector's performance. The disparity in capitalization and strategy between these two ETFs presents diverse opportunities and risks, necessitating a thorough evaluation by potential investors.

FREL VS VNQ: Tracking and Exposure

FREL's primary objective is to provide investors with exposure to the MSCI USA IMI Real Estate Index, ensuring a broad representation of the US real estate sector. In contrast, VNQ's goal is to mirror the performance of the MSCI US Investable Market Real Estate 25/50 Index. The distinct tracking mechanisms and exposure levels of these ETFs require investors to understand their nuances to make informed decisions.

Conclusion

FREL and VNQ, while both targeting the real estate sector, offer distinct investment approaches. For investors keen on a deeper understanding of holdings, correlations, overlaps, and other insights, ETF insider emerges as the go-to platform.

FREL ETF issuer
FREL ETF official page

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