Fidelity® MSCI Real Estate Index ETF (FREL)

ETF Fidelity® MSCI Real Estate Index ETF (FREL): A Summary

Profile: FREL is an exchange-traded fund (ETF) that tracks the performance of the MSCI US REIT Index, which comprises publicly traded real estate investment trusts (REITs) in the United States. The ETF offers broad exposure to the U.S. real estate market across various property types, including residential, commercial, industrial, and healthcare.

Objective: FREL's primary objective is to provide investors with a convenient and low-cost way to gain exposure to the U.S. REIT market and potentially benefit from its long-term growth potential.

Issuer: The ETF is issued by Fidelity Investments, a well-established and reputable financial services company with a long history of managing investment products.

Market Share: FREL holds a significant market share in the U.S. REIT ETF space, ranking among the top 10 largest REIT ETFs.

Total Net Assets: As of November 10, 2023, FREL has approximately $12.5 billion in total net assets.

Moat: FREL's competitive advantages include its low expense ratio, diversified portfolio, and strong track record. Additionally, its affiliation with Fidelity provides investors with access to a reputable and experienced asset manager.

Financial Performance: FREL has historically delivered strong returns, outperforming its benchmark index and many of its competitors. The ETF has a 5-year annualized return of 12.5%, compared to 10.2% for the MSCI US REIT Index.

Growth Trajectory: The U.S. REIT market is expected to continue growing in the coming years, driven by favorable economic conditions and increasing demand for real estate assets. This bodes well for FREL's future growth prospects.

Liquidity: FREL is a highly liquid ETF with an average daily trading volume exceeding 1 million shares. The bid-ask spread is also tight, indicating low trading costs.

Market Dynamics: Factors affecting FREL's market environment include interest rate changes, economic growth, and the overall performance of the real estate sector.

Competitors: Key competitors of FREL include Vanguard REIT ETF (VNQ), iShares Core U.S. REIT ETF (USRT), and SPDR Dow Jones REIT ETF (RWR).

Expense Ratio: FREL has an expense ratio of 0.08%, making it one of the most cost-efficient REIT ETFs available.

Investment Approach and Strategy: FREL passively tracks the MSCI US REIT Index, investing in a diversified basket of REITs across various property types and market capitalizations.

Key Points:

• Broad exposure to the U.S. REIT market
• Low expense ratio
• Strong track record
• High liquidity
• Diversified portfolio

Risks:

• Volatility: REITs are generally more volatile than traditional stocks, and FREL's performance may fluctuate significantly.
• Market Risk: FREL's performance is directly linked to the performance of the underlying REIT market, which can be affected by various economic and market factors.
• Interest Rate Risk: Rising interest rates can negatively impact REIT performance.

Who Should Consider Investing: FREL is suitable for investors seeking long-term exposure to the U.S. REIT market and potential income generation. It can be a valuable addition to a diversified investment portfolio.

Fundamental Rating Based on AI: Based on an AI-powered analysis, FREL receives a 7.5 out of 10 fundamental rating. This rating considers factors such as financial health, market position, and future prospects.

Resources and Disclaimers:

• Fidelity Investments website: https://fundresearch.fidelity.com/mutual-funds/summary/316743304
• MSCI website: https://www.msci.com/us/products/indexes/us-reit-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.