FREL vs VNQ: Grades, Fees and Holdings Compared

Fidelity MSCI Real Estate Index ETF

FRELANYSE Arca

Vanguard Real Estate ETF

VNQANYSE Arca

Overlap

91.8%by weight

Expense ratio

FREL −0.05pt a year

FREL0.08%VNQ0.13%

Avg volume · 30D

VNQ 11.8×the volume

FREL310KVNQ3.67M

10Y return · a year

FREL +0.4pt

FREL+5.9%VNQ+5.5%

FREL vs VNQ Performance

Oct 29, 2021 – Oct 30, 2026

+4.4%FREL+4.6%VNQ

Expense ratio: FREL 0.08%, better; VNQ 0.13%
Fund size: FREL $1.35B; VNQ $66.4B
1Y total return: FREL +9.0%; VNQ +9.3%, better
Yield (12M): FREL 3.41%; VNQ 3.63%, better
Holdings: FREL 127; VNQ 145
Avg volume (30D): FREL 310K sh; VNQ 3.67M sh, better
NAV per share: FREL $28.51; VNQ $93.92
52W range

ETF.net Grade

Pillar letters and Scores for FREL, VNQ, with each pillar’s weight
Pillar	FREL	VNQ
Cost30% weight	A93Higher	A76
Mission25% weight	A99	A100Higher
Risk15% weight	C48	C48
Tradability15% weight	B66Higher	B57
Holdings10% weight	A77Higher	B65
Durability5% weight	B66	A92Higher

Rank among US Real Estate funds

How we build Categories ›

Same Category. FREL and VNQ are both graded against the same 21 US Real Estate funds, so their Grades compare head to head.

US Real Estate⁠

Category · 21 funds

See all 21 ›

FREL ranks 3rd and VNQ 6th of 21 funds in the US Real Estate Category.

Rank 1ASCHHSchwab U.S. REIT ETFScore 83
Rank 1AUSRTiShares Core U.S. REIT ETFScore 83
Rank 3AFRELFidelity MSCI Real Estate Index ETFScore 80
Rank 4AXLREState Street Real Estate Select Sector SPDR ETFScore 78
Rank 5ADFARDFA Real Estate Securities Portfolio ETF Class SharesScore 75
Rank 6AVNQVanguard Real Estate ETFScore 74
Rank 7ARWRState Street SPDR Dow Jones REIT ETFScore 73

Our read on each fund

ETF.net Research

FRELAFidelity MSCI Real Estate Index ETF

VNQAVanguard Real Estate ETF

In short

FREL Fidelity's take on US real estate: one index, about 150 property stocks, and a 0.08% fee against a 0.37% category median. Cheap beta on landlords, and one of the strongest implementations in its peer group.

VNQ The 2004 original in US listed real estate: one ticker for nearly the whole property market, from the biggest landlords down to small ones, at a fraction of the typical sector fee.

Stated mandate

FREL The fund seeks to track, before fees and expenses, the performance of the MSCI USA IMI Real Estate Index.

VNQ The fund seeks high income and moderate long-term capital appreciation by tracking an index of publicly traded equity REITs and other U.S. real-estate-related investments.

Why people hold it

FREL 0.08% a year against a 0.37% median for US real estate funds. Among the category's leaders, only SCHH runs cheaper, and only by a basis point.
Tracks the MSCI USA IMI Real Estate Index tightly, with very little drift from the benchmark it promises to follow.
Plain vanilla plumbing: a 1940 Act index fund holding about 150 US real estate stocks. No leverage, no options overlay, cash paid out quarterly.
Trading since 2015 and now a multi-billion-dollar fund with Fidelity's index desk behind it.

VNQ 0.13% a year versus a peer-group median of 0.37%. On a sector fund, the fee is the part you actually control.
Full replication of the MSCI US IM Real Estate 25/50 Index: about 160 names, and the 25/50 rules cap how big any single issuer can get.vanguard.com
A multi-tens-of-billions fund and one of the most actively traded in its category, so entering and exiting rarely means fighting the spread.
Income is the stated mandate: high income plus moderate long-term capital appreciation from listed REITs, paid out quarterly, with Vanguard running it since 2004.vanguard.com

Worth knowing

FREL One sector, one country. US real estate can move on its own schedule for long stretches, and this fund rides every bit of that.
Moderately traded rather than a volume leader in the category, which can show up as wider bid-ask spreads.
Crowded shelf. SCHH, VNQ, USRT and XLRE cover similar ground at similar prices, so the real difference is which index each one follows.

VNQ Not the cheapest shelf in the aisle. SCHH charges 0.07% and USRT, FREL and XLRE 0.08%, so a few basis points separate it from its closest rivals.
One sector, and a rate-sensitive one. REIT borrowing costs and valuations track interest rates, so the ride is bumpier than a total-market fund.vanguard.com
The index reaches past classic landlords into data-center and other specialized REITs plus real estate services and development firms. Broader than pure property.vanguard.com

Full FREL profile⁠

Full VNQ profile⁠

FREL vs VNQ Holdings

How FREL and VNQ differ

Overlap by weight

91.8%

Shared holdings make up 96.6% of FREL and 95.7% of VNQ.

Level by level

Asset classEquity, Real Estate0.0%
Holdings117 in both91.8%
Countryby domicile100%
Sector4 Sectors100%

Sector

Sector weights in FREL and VNQ, widest gap first
Sector	More in FRELMore in VNQ	FREL	VNQ
Communication	Same weight	0.4%	0.4%
Industrials	Same weight	0.0%	0.0%
Real Estate	Same weight	99.5%	99.5%
Energy	Same weight	0.1%	0.1%

Country, concentration and asset class

Country by domicile

Country weights in FREL and VNQ, widest gap first
Country	More in FRELMore in VNQ	FREL	VNQ
United States	Same weight	100.0%	100.0%

Concentration

Weight in the 10 largest Holdings

FREL48.5%
VNQ51.2%

Securities held

FREL126
VNQ140

Asset class

FREL: Equity
VNQ: Real Estate

Holdings

Only in FREL9
In both117
Only in VNQ23

Only in FREL

9 securities, 4.4% of FREL by weight

Vivmark Residential2.97%
Securities Lending Cf1.14%
Medical Ppty Tr Inc0.10%
State Street 60 Day Money Mark0.05%
Janus Living Inc0.03%
Agnt Inc0.03%
Blackstone Dig Inf Trust Inc0.02%
Fermi Llc0.01%
Dj Us Real Estat F DEC26 DJEZ6<0.01%

Only in VNQ

23 securities, 4.0% of VNQ by weight

Vivmark Residential2.89%
SLCMT11420.43%
Innovative Industrial Properties Inc0.10%
Medical Properties Trust Inc0.07%
CTO Realty Growth Inc0.04%
Summit Hotel Properties Inc0.04%
Hudson Pacific Properties Inc0.04%
Chatham Lodging Trust0.04%
Universal Health Realty Income Trust0.03%
Farmland Partners Inc0.03%
AH Realty Trust Inc0.03%
Chiron Real Estate Inc0.03%
Gladstone Land Corp0.03%
Industrial Logistics Properties Trust0.03%
Community Healthcare Trust Inc0.03%
One Liberty Properties Inc0.02%
Tejon Ranch Co0.02%
AGNT Inc0.02%
RMR Group Inc/The0.02%
Apartment Investment and Management Co0.02%
SITE Centers Corp0.01%
Seaport Entertainment Group Inc0.01%
New York Reit In0.00%

Weight gaps

The 100 widest of 117 Holdings in both funds.

Holding weights in FREL and VNQ, widest gap first
Holding	More in FRELMore in VNQ	FREL	VNQ
Welltower IncWELL	VNQ +1.16 points	9.54%	10.70%
Equinix IncEQIX	VNQ +1.00 points	5.63%	6.63%
Prologis Inc ReitPLD	VNQ +0.73 points	7.32%	8.05%
Crown Castle IncCCI	FREL +0.64 points	2.57%	1.93%
Public StoragePSA	FREL +0.39 points	3.54%	3.15%
Extra Space Storage IncEXR	FREL +0.29 points	2.14%	1.85%
Digital Realty Trust IncDLR	VNQ +0.27 points	4.05%	4.32%
Simon Ppty Group Inc - ReitSPG	FREL +0.23 points	4.56%	4.33%
American Tower CorpAMT	VNQ +0.23 points	4.84%	5.07%
Sba Communications CorpSBAC	FREL +0.22 points	1.35%	1.13%
Host Hotels & Resorts IncHST	FREL +0.20 points	1.22%	1.02%
Jones Lang Lasalle IncJLL	FREL +0.19 points	1.13%	0.94%
Ventas Inc ReitVTR	VNQ +0.19 points	2.56%	2.75%
Iron Mountain IncIRM	FREL +0.15 points	2.34%	2.19%
Camden Property Trust - ReitCPT	FREL +0.13 points	0.73%	0.60%
Kimco Realty CorporationKIM	FREL +0.12 points	1.12%	1.00%
Lamar Advertising Co Class ALAMR	FREL +0.11 points	0.94%	0.83%
Invitation Homes IncINVH	FREL +0.11 points	1.05%	0.94%
Regency Centers Corp ReitREG	FREL +0.10 points	0.89%	0.79%
Vici Pptys IncVICI	FREL +0.10 points	1.77%	1.67%
Realty Income Corp ReitO	FREL +0.10 points	3.44%	3.34%
Udr IncUDR	FREL +0.10 points	0.75%	0.65%
CubesmartCUBE	FREL +0.07 points	0.63%	0.56%
Healthcare Realty Trust IncHR	FREL +0.06 points	0.45%	0.39%
Alexandria Real Es Eq Inc ReitARE	VNQ +0.06 points	0.43%	0.49%
American Homes 4 Rent Class AAMH	FREL +0.07 points	0.70%	0.63%
Weyerhaeuser CoWY	FREL +0.07 points	0.98%	0.91%
Zillow Group Inc Class CZ	FREL +0.05 points	0.33%	0.28%
Brixmor Ppty Group IncBRX	FREL +0.06 points	0.59%	0.53%
Rayonier Inc ReitRYN	FREL +0.06 points	0.39%	0.33%
Kilroy Realty CorpKRC	FREL +0.05 points	0.27%	0.22%
Gaming and Leisure Proprti IncGLPI	FREL +0.05 points	0.73%	0.68%
Apple Hospitality Reit IncAPLE	FREL +0.05 points	0.29%	0.24%
Costar Group IncCSGP	FREL +0.05 points	0.79%	0.74%
Sun Communities Inc - ReitSUI	FREL +0.05 points	0.96%	0.91%
Kite Realty Group TrustKRG	FREL +0.05 points	0.38%	0.33%
Ryman Hospitality Pptys IncRHP	FREL +0.04 points	0.52%	0.48%
Caretrust Reit IncCTRE	VNQ +0.04 points	0.53%	0.57%
Pebblebrook Hotel TrustPEB	FREL +0.04 points	0.18%	0.14%
Sunstone Hotel Invs IncSHO	FREL +0.04 points	0.17%	0.13%
Rlj Lodging TrustRLJ	FREL +0.04 points	0.14%	0.10%
Diamondrock Hospitality CoDRH	FREL +0.04 points	0.21%	0.17%
Park Hotels & Resorts IncPK	FREL +0.04 points	0.24%	0.20%
Xenia Hotels &RESORTS IncXHR	FREL +0.04 points	0.15%	0.11%
Bxp IncBXP	FREL +0.03 points	0.63%	0.60%
First Industrial Realty TrustFR	VNQ +0.03 points	0.49%	0.52%
St Joe CompanyJOE	FREL +0.03 points	0.20%	0.17%
Jbg Smith PropertiesJBGS	FREL +0.03 points	0.07%	0.04%
Rexford Industrial Realty IncREXR	FREL +0.04 points	0.58%	0.54%
Cbre Group Inc - Class ACBRE	FREL +0.03 points	2.53%	2.50%
Omega Healthcare Investors IncOHI	VNQ +0.03 points	0.89%	0.92%
Mid America Apt Cmnty IncMAA	FREL +0.03 points	0.94%	0.91%
Vornado Realty TrustVNO	FREL +0.02 points	0.38%	0.36%
Cousins Properties IncCUZ	FREL +0.03 points	0.33%	0.30%
Federal Realty Investment TrFRT	FREL +0.02 points	0.58%	0.56%
Sl Green Realty Corp ReitSLG	FREL +0.03 points	0.25%	0.22%
Outfront Media IncOUT	FREL +0.02 points	0.32%	0.30%
Cushman & Wakefield LtdCWK	FREL +0.03 points	0.21%	0.18%
Tanger Inc- ReitSKT	FREL +0.02 points	0.28%	0.26%
Highwoods Properties IncHIW	FREL +0.02 points	0.22%	0.20%
Howard Hughes Holdings IncHHH	FREL +0.02 points	0.17%	0.15%
American Assets Trust IncAAT	FREL +0.01 points	0.08%	0.07%
Copt Defense PropertiesCDP	FREL +0.02 points	0.27%	0.25%
Cbl & Associat Properties IncCBL	VNQ +0.02 points	0.05%	0.07%
Empire State Realty Trust Class AESRT	FREL +0.01 points	0.05%	0.04%
Eastgroup Pptys IncEGP	VNQ +0.02 points	0.69%	0.71%
Epr PropertiesEPR	FREL +0.01 points	0.30%	0.29%
Piedmont Realty Trust IncPDM	FREL +0.02 points	0.09%	0.07%
Sabra Healthcare Reit IncSBRA	VNQ +0.01 points	0.32%	0.33%
Smartstop Self Storage Reit InSMA	FREL +0.01 points	0.13%	0.12%
Broadstone Net Lease IncBNL	VNQ +0.01 points	0.23%	0.24%
Alexander's IncALX	FREL +0.01 points	0.05%	0.04%
Inland Americn Real Est Tr IncIVT	FREL +0.01 points	0.17%	0.16%
Forestar Group IncFOR	FREL +0.01 points	0.04%	0.03%
CenterspaceCSR	FREL +0.01 points	0.07%	0.06%
Zillow Group Inc Class AZG	FREL +0.01 points	0.08%	0.07%
Marcus & Millichap Co IncMMI	FREL +0.01 points	0.05%	0.04%
Essential Properties RealtyEPRT	VNQ +0.01 points	0.36%	0.37%
Macerich CompanyMAC	VNQ +0.01 points	0.41%	0.42%
Phillips Edison & CoPECO	FREL +0.01 points	0.32%	0.31%
Brandywine Realty TrustBDN	FREL +0.01 points	0.04%	0.03%
Lineage IncLINE	FREL +0.01 points	0.16%	0.15%
Global Net Lease IncGNL	VNQ +0.01 points	0.11%	0.12%
Lxp Industrial Trust ReitLXP	FREL +0.01 points	0.25%	0.24%
Newmark Group Inc Class ANMRK	VNQ +0.01 points	0.11%	0.12%
Healthpeak Properties IncDOC	VNQ +0.01 points	0.91%	0.92%
Terreno Realty CorpTRNO	VNQ +0.01 points	0.45%	0.46%
Nexpoint Residential Trust IncNXRT	FREL +0.01 points	0.03%	0.02%
Millrose Properties IncMRP	VNQ +0.01 points	0.26%	0.27%
Americold Realty TrustCOLD	Same weight	0.27%	0.27%
Wp Carey IncWPC	Same weight	0.96%	0.96%
Urban Edge Properties WiUE	FREL +0.01 points	0.17%	0.16%
Acadia Rlty Tr ReitAKR	VNQ +0.01 points	0.16%	0.17%
Stag Industrial Inc Class ASTAG	Same weight	0.46%	0.46%
Agree Realty CorpADC	Same weight	0.53%	0.53%
Getty Realty CorpGTY	VNQ +0.01 points	0.10%	0.11%
Equity Lifestyle Pptys IncELS	Same weight	0.71%	0.71%
Saul Centers IncBFS	Same weight	0.03%	0.03%
Compass IncCOMP	Same weight	0.41%	0.41%
Ltc Properties Inc ReitLTC	VNQ +0.01 points	0.14%	0.15%

All 147 FREL holdings⁠All 158 VNQ holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

FREL vs VNQ Cost

Overpaying VNQ vs FREL

$953

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

FREL 0.084%
$1,773
VNQ 0.13%
$2,726

Amount$10,000

Years30 years

Cost over time

FREL 0.084%
VNQ 0.13%
Overpaying

Year by year

Year	FREL	VNQ	Overpaying
10	$154	$238	$84
20	$603	$930	$327
30	$1,773	$2,726	$953

Expense ratio

0.08%FREL, cheaper
0.13%VNQ

FREL0.08%VNQ0.13%

0.07%0.65%

Middle half of US Real Estate funds
Median 0.35%

FREL 4th cheapest of 21 funds

VNQ 6th cheapest of 21 funds

FREL vs VNQ Dividends

Last 12 months to Oct 30, 2026

Yield (12M): FREL 3.41%; VNQ 3.63%, better
Payout (12M): FREL $0.97; VNQ $3.41
Last payment: FREL $0.23; VNQ $0.80
Ex-dividend: FREL Sep 18, 2026; VNQ Sep 23, 2026
Paid on: FREL Sep 22, 2026; VNQ Sep 25, 2026
Frequency: FREL Quarterly; VNQ Quarterly

Distribution history

Per share, 2017 to 2026, same scale for both

FRELQuarterly · 39 paymentsAll FREL payments⁠

VNQQuarterly · 39 paymentsAll VNQ payments⁠

FREL vs VNQ Risk

Fall from peak · 5 years

FREL
VNQ

Risk facts

VolatilityStd dev, 3 years: FREL 16.5%VNQ 16.5%
Return per unit of riskSharpe ratio, 3 years: FREL 0.56VNQ 0.56
Worst fallMax drawdown, 5 years: FREL −34.4%, betterVNQ −34.5%
Market sensitivityBeta, 5 years: FREL 0.99VNQ 0.99; Market = 1

FREL and VNQ in the news

All news⁠

Deep Dive
Global real estate ETFs that are up for 2026 are built mostly of U.S. REITs
Oct 14, 2026VNQ
Sector Pulse
Health care leads as a SpaceX deal splits the carriers from the towers
Oct 9, 2026VNQ
Category Review
Vanguard's property fund lost a first-half lead over stocks
Updated Oct 8, 2026VNQ
Sector Pulse
Caterpillar and Deere fell as industrials dropped 2.2%
Oct 7, 2026VNQ
Sector Pulse
Utilities led the sectors, pulled by Constellation and Vistra
Oct 6, 2026VNQ
Sector Pulse
Materials led the sectors, pulled by Vylor and two steelmakers
Oct 5, 2026VNQ

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FREL vs VNQ

In short

Stated mandate

Why people hold it