Fidelity MSCI Real Estate Index ETF (FREL): Complete Beginner's Guide
Last updated: March 2026 • Fidelity • Real Estate
Expense Ratio
0.08%
AUM
$1.2B
Dividend Yield
3.30%
Inception
2015
Beginner Score
9/10
What is Fidelity MSCI Real Estate Index ETF?
FREL tracks an index of U.S. real estate investment trusts and real estate companies, offering exposure to commercial properties like offices, malls, data centers, and apartment buildings. REITs are required to distribute most of their income as dividends, making this fund attractive for income investors. It is one of the cheapest ways to add real estate to your portfolio.
FREL is managed by Fidelity and has been available since 2015. With $1.2B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.08%, which means for every $10,000 you invest, you pay approximately $8 per year in management fees.
FREL at a Glance — Key Metrics
| Expense Ratio | 0.08% |
| Total Holdings | 165 |
| P/E Ratio | 35.2 |
| Beta | 0.85 |
| Dividend Yield | 3.30% |
| AUM | $1.2B |
| Inception Year | 2015 |
| Issuer | Fidelity |
Top 10 Holdings in FREL
FREL holds 165 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Prologis Inc. | PLD | 9.00% |
| 2 | American Tower Corp. | AMT | 8.00% |
| 3 | Equinix Inc. | EQIX | 6.00% |
| 4 | Welltower Inc. | WELL | 4.00% |
| 5 | Simon Property Group | SPG | 3.80% |
| 6 | Digital Realty Trust | DLR | 3.50% |
| 7 | Public Storage | PSA | 3.30% |
| 8 | Realty Income Corp. | O | 3.00% |
| 9 | Crown Castle Intl. | CCI | 2.80% |
| 10 | VICI Properties | VICI | 2.50% |
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FREL Performance History
Here's how FREL has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.50%
1 Year
10.00%
3 Year
2.00%
5 Year
5.00%
10 Year
7.00%
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
FREL scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 165 holdings, and has been available since 2015, giving it a proven track record.
How to Buy FREL — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "FREL" — Use the search bar in your brokerage platform to find Fidelity MSCI Real Estate Index ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into FREL
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With FREL's expense ratio of 0.08%, a $10,000 investment would lose approximately $686 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of FREL
Pros
- ✓Ultra-low 0.08% expense ratio makes it the cheapest real estate sector ETF
- ✓Attractive dividend yield from REITs that are legally required to pay out income
- ✓Provides real estate exposure without the hassle of owning physical property
- ✓Includes modern real estate like data centers and cell towers alongside traditional properties
Cons
- ✗REITs are highly sensitive to interest rate changes which affect borrowing costs
- ✗Concentrated entirely in real estate with no diversification across other sectors
- ✗Work-from-home trends have created uncertainty for office and retail REIT holdings
Frequently Asked Questions
Is FREL a good ETF for beginners?▾
FREL has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of FREL?▾
FREL has an expense ratio of 0.08%. This means for every $10,000 you invest, you pay approximately $8 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in FREL?▾
You can invest in FREL with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does FREL pay dividends?▾
Yes, FREL pays dividends with a current yield of approximately 3.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in FREL?▾
The top holdings in FREL include Prologis Inc. (9.00%), American Tower Corp. (8.00%), Equinix Inc. (6.00%), and more. The fund holds 165 total positions, providing broad diversification across many companies.