REET VS FREL
4 min read
By Beqa Bumbeishvili, ETF Insider

REET VS FREL

Exchange-Traded Funds (ETFs) have changed the way investors approach the financial markets, offering efficient and diversified exposure to various sectors and asset classes. In this article, we will undertake a thorough comparison between two prominent ETFs: REET (iShares Global REIT ETF) and FREL (Fidelity MSCI Real Estate Index ETF). By delving into aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide a comprehensive overview for investors.

REET Vs FREL: Overview

The REET and FREL ETFs represent distinct investment opportunities within the real estate sector. While REET focuses on providing exposure to global real estate companies, FREL concentrates on tracking the MSCI USA IMI Real Estate Index. This disparity in investment objectives leads to varying exposures, risk profiles, and potential returns. Let's delve deeper into these aspects to gain a clearer understanding.

REET Vs FREL: Sectors and Top Holdings

When examining the sectors and top holdings of REET and FREL, notable differences emerge. REET is designed to provide broad exposure to real estate companies across multiple regions, including residential, commercial, and industrial properties. FREL, on the other hand, concentrates solely on U.S. real estate, holding positions in companies such as American Tower Corporation, Prologis Inc., and Simon Property Group. Investors seeking specific geographical or sectoral exposure can benefit from understanding these variations.

REET  overlap REET VS FRELREET overlap REET VS FREL

REET Vs FREL: Capitalization and Strategy

The capitalization and investment strategies of REET and FREL contribute to their unique market positioning. REET boasts a significant asset under management (AUM), reflecting its popularity among investors seeking global real estate exposure. FREL's strategy revolves around tracking the MSCI USA IMI Real Estate Index, aiming to capture the performance of the U.S. real estate market. The divergence in capitalization and strategy introduces distinct potential for returns and risks that investors should carefully evaluate.

REET Vs FREL: Tracking and Exposure

Understanding how REET and FREL achieve their investment goals through tracking and exposure mechanisms is crucial for investors. REET seeks to replicate the performance of the FTSE EPRA/NAREIT Global Index, providing exposure to real estate companies worldwide. FREL, on the other hand, tracks the MSCI USA IMI Real Estate Index, offering exposure exclusively to U.S. real estate stocks. Recognizing these tracking methodologies aids investors in aligning their investment objectives with the appropriate ETF.

Conclusion

In the world of ETFs, REET and FREL stand as distinct choices for investors looking to tap into the potential of the real estate sector. Whether it's global real estate exposure or a concentrated focus on the U.S. market, these ETFs offer unique strategies and risk profiles. For investors seeking a more in-depth analysis of holdings, correlations, overlaps, and other insights, ETF Insider provides a valuable resource. With its user-friendly app, investors can access comprehensive details about these ETFs and other financial instruments.

Disclaimer: This article is intended solely for informational purposes and does not provide investment advisory services.

Sources:

FREL ETF issuer https://www.etf.com/
FREL ETF official page https://www.etf.com/FREL

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FAQ

  • Why is REET better than FREL?

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

  • Does FREL beat REET?

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

  • Should I invest in REET or FREL?

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

  • Are REET and FREL good investments?

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

  • What is the correlation between REET and FREL?

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