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

IYR VS FREL

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, offering a diversified approach to gain exposure across various sectors and asset classes. In this article, we will delve into an in-depth comparison between two prominent Real Estate ETFs: IYR (iShares U.S. Real Estate ETF) and FREL (Fidelity MSCI Real Estate ETF). We will explore key facets such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

IYR Vs FREL: Overview

IYR and FREL are two Real Estate ETFs, each encompassing distinct strategies within the real estate sector. While IYR is designed to track the performance of U.S. real estate investment trusts (REITs), FREL aims to replicate the MSCI USA IMI Real Estate Index. This distinction in focus leads to differing exposure and associated risks, which we will dissect in the subsequent sections.

IYR Vs FREL: Sectors and Top Holdings

The IYR ETF primarily focuses on U.S. real estate, holding significant positions in REITs such as American Tower Corporation, Prologis Inc., and Simon Property Group. On the other hand, FREL covers a broader spectrum, encompassing companies related to real estate development, ownership, and management. Understanding the sectors and top holdings can empower investors to choose the ETF that aligns with their investment objectives and risk appetite.

IYR  overlap IYR VS FRELIYR overlap IYR VS FREL

IYR Vs FREL: Capitalization and Strategy

IYR boasts substantial assets under management (AUM), indicating its popularity among investors seeking exposure to the U.S. real estate market. FREL's approach centers on tracking the performance of a diverse range of U.S. real estate stocks. The divergence in capitalization and strategy between the two ETFs introduces varying potential for returns and risk, necessitating careful consideration by investors.

IYR Vs FREL: Tracking and Exposure

IYR aims to offer investors exposure to the performance of U.S. REITs, which can be influenced by factors such as interest rates, property demand, and economic conditions. In contrast, FREL seeks to replicate the MSCI USA IMI Real Estate Index, providing broader exposure to the real estate industry. Investors can benefit from understanding the distinct tracking and exposure methodologies, enabling them to select the ETF that best aligns with their investment preferences.

Conclusion

IYR and FREL represent two unique approaches to investing in the real estate sector. As investors seek to gain insights into holdings, correlations, overlaps, and other crucial metrics, ETF Insider emerges as the ultimate tool for exploration. With its user-friendly app, ETF Insider delivers comprehensive details on these financial instruments and more.

Disclaimer: This article does not provide investment advisory services.

Sources:

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FAQ

  • Why is IYR better than FREL?

    IYR may be considered better than FREL for some investors due to its specific focus, offering diversification.

  • Does FREL beat IYR?

    FREL's performance relative to IYR will vary over time, depending on market conditions.

  • Should I invest in IYR or FREL?

    The choice between IYR and FREL should align with your investment goals, risk tolerance, and desired exposure.

  • Are IYR and FREL good investments?

    Both IYR and FREL can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between IYR and FREL?

    The correlation between IYR and FREL can vary over time, reflecting differences in performance.