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Upturn AI SWOT - About
Fidelity® MSCI Real Estate Index ETF (FREL)
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Upturn Advisory Summary
04/01/2025: FREL (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit -6.42% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 243879 | Beta 1.16 | 52 Weeks Range 22.80 - 29.49 | Updated Date 04/2/2025 |
52 Weeks Range 22.80 - 29.49 | Updated Date 04/2/2025 |
Upturn AI SWOT
Fidelity® MSCI Real Estate Index ETF
ETF Overview
Overview
The Fidelityu00ae MSCI Real Estate Index ETF (FREL) seeks to provide investment results that correspond to the performance of the MSCI USA IMI Real Estate Index, representing the U.S. real estate sector. It invests primarily in real estate investment trusts (REITs) and real estate management and development companies.
Reputation and Reliability
Fidelity is a well-established and reputable financial services company with a long track record in investment management.
Management Expertise
Fidelity has a large and experienced team of portfolio managers and analysts overseeing its ETFs.
Investment Objective
Goal
To track the performance of the MSCI USA IMI Real Estate Index.
Investment Approach and Strategy
Strategy: Passive management, aiming to replicate the index by investing in its constituent securities.
Composition Primarily stocks of U.S. REITs and real estate-related companies.
Market Position
Market Share: FREL holds a significant, but not dominant, market share within the real estate ETF sector.
Total Net Assets (AUM): 1680000000
Competitors
Key Competitors
- VNQ
- IYR
- SCHH
Competitive Landscape
The real estate ETF market is competitive, with VNQ holding the largest market share. FREL competes on cost and tracking accuracy. FREL benefits from Fidelity's brand but needs to differentiate further through performance or niche strategies. It has a lower expense ratio than IYR which is a benefit.
Financial Performance
Historical Performance: Historical performance data is readily available from financial data providers. Reviewing past returns is necessary to assess the ETF's performance.
Benchmark Comparison: FREL's performance should closely track the MSCI USA IMI Real Estate Index. Deviations may occur due to tracking error.
Expense Ratio: 0.08
Liquidity
Average Trading Volume
FREL exhibits moderate liquidity with a reasonable average daily trading volume, facilitating relatively easy buying and selling of shares.
Bid-Ask Spread
The bid-ask spread is generally tight, indicating efficient trading and lower transaction costs.
Market Dynamics
Market Environment Factors
Economic conditions, interest rates, inflation, and real estate market trends significantly impact FREL's performance. Rising interest rates can negatively affect REIT valuations.
Growth Trajectory
Growth depends on the overall health of the real estate market and investor sentiment towards REITs. Changes in the index composition may also influence its trajectory.
Moat and Competitive Advantages
Competitive Edge
FREL's competitive edge lies in its low expense ratio and the backing of Fidelity's brand reputation. While it passively tracks the index, its cost-effectiveness can attract cost-conscious investors. It provides broad exposure to the U.S. real estate market. However, it lacks a unique investment strategy to set it apart from larger competitors like VNQ. The lower expense ratio helps.
Risk Analysis
Volatility
FREL's volatility is tied to the inherent volatility of the real estate sector. Real estate investments can be sensitive to economic cycles.
Market Risk
Specific risks include interest rate risk (rising rates can decrease REIT values), property-specific risks (occupancy rates, property management), and regulatory changes affecting the real estate industry.
Investor Profile
Ideal Investor Profile
Investors seeking exposure to the U.S. real estate market through REITs, particularly those who prioritize low costs and broad diversification, are ideal investors.
Market Risk
Suitable for long-term investors seeking to diversify their portfolio with real estate exposure or passive index followers.
Summary
Fidelity's FREL offers a cost-effective way to gain exposure to the U.S. real estate market through REITs. It passively tracks the MSCI USA IMI Real Estate Index. The ETF's performance is highly dependent on the overall health of the real estate sector and prevailing economic conditions. Its low expense ratio and Fidelity's reputation make it a competitive option, particularly for cost-conscious investors seeking passive real estate exposure.
Similar Companies
IYR
iShares U.S. Real Estate ETF
IYR
iShares U.S. Real Estate ETF
RWR
SPDR® Dow Jones REIT ETF
RWR
SPDR® Dow Jones REIT ETF
SCHH
Schwab U.S. REIT ETF
SCHH
Schwab U.S. REIT ETF
VNQ
Vanguard Real Estate Index Fund ETF Shares
VNQ
Vanguard Real Estate Index Fund ETF Shares
Sources and Disclaimers
Data Sources:
- Fidelity Investments Website
- MSCI Index Website
- Morningstar
- ETF.com
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before investing.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Fidelity® MSCI Real Estate Index ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund invests at least 80% of assets in securities included in the fund's underlying index. The fund's underlying index is the MSCI USA IMI Real Estate 25/25 Index, which represents the performance of the real estate sector in the U.S. equity market. It may or may not hold all of the securities in the MSCI USA IMI Real Estate 25/25 Index.
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