GET DAILY SIGNALSFRI vs IYR: Evaluating Two Leading Real Estate ETFs
Key Takeaways
- Both funds are passively managed U.S. real estate ETFs, but FRI tracks a pure equity REIT (Real Estate Investment Trust) index, while IYR follows a broader real estate sector index that also includes real estate services and mortgage REITs.
- FRI holds roughly 126 REITs for greater breadth, whereas IYR holds about 62–64 names, creating a more concentrated portfolio.
- IYR is the cheaper and far more liquid vehicle, with a 0.37% expense ratio versus 0.50% for FRI, and a substantially larger asset base.
- Both share heavy exposure to mega-cap names such as Welltower and Prologis, but IYR adds differentiated positions in tower, data-center, and real estate services companies.
- Performance drivers are closely correlated, reflecting common exposure to interest rates, data-center demand, and senior-housing trends.
- Tickeron AI Verdict: IYR — favored for its lower cost, deeper liquidity, and broader, more liquid real estate sector footprint.
Why These Two ETFs Stand Out
Real estate remains one of the most rate-sensitive areas of the equity market, so sector-focused ETFs often serve as practical tools for investors looking for income, inflation protection, or tactical exposure. First Trust S&P REIT Index Fund (FRI) and iShares U.S. Real Estate ETF (IYR) belong to the same broad category yet differ in meaningful ways. FRI concentrates on publicly traded equity REITs, while IYR takes a wider view across the full U.S. real estate sector. Examining their structures, costs, and holdings helps clarify which option aligns better with specific objectives in today’s environment.
A Closer Look at FRI
FRI is a passively managed fund designed to track the S&P United States REIT Index, a market-cap-weighted benchmark of U.S.-domiciled equity REITs. These companies own and operate income-producing real estate and distribute most of their income to shareholders. The fund typically invests at least 90% of its assets in index components and holds around 126 REITs, excluding cash.
Its largest positions include Welltower (WELL) at roughly 12%, Prologis (PLD) near 9.5%, and Simon Property Group (SPG), Equinix (EQIX), and Digital Realty Trust (DLR) each around 4–5%. Additional holdings feature Realty Income (O), Public Storage (PSA), and Ventas (VTR). Allocation stays essentially 100% in real estate, covering specialized, industrial, retail, residential, healthcare, data-center, and self-storage REITs. The fund’s net expense ratio is 0.50%, and it has been available since 2007. I also checked this using Tickeron’s AI Screener to see how the holdings stack up against peers.
A Closer Look at IYR
IYR tracks the Dow Jones U.S. Real Estate Capped Index, which covers the broader U.S. real estate sector rather than REITs exclusively. This means it includes equity REITs along with real estate operating, development, and services companies, plus limited mortgage REIT exposure. The fund usually holds about 62–64 securities.
Top holdings overlap significantly with FRI, led by Welltower (WELL) and Prologis (PLD). IYR adds exposure to tower REITs such as American Tower (AMT) and Crown Castle (CCI), plus real estate services leader CBRE Group (CBRE), alongside Simon Property Group (SPG), Equinix (EQIX), and Digital Realty Trust (DLR). IYR stands out as the larger, lower-cost option, with an expense ratio of 0.37% and multi-billion-dollar assets under management.
Current Industry and Thematic Drivers
Both ETFs respond to the same macroeconomic influences. Real estate reacts strongly to interest-rate changes that affect financing costs, property valuations, and the appeal of REIT dividends relative to bonds. Recent market cycles have shown how shifts in monetary-policy expectations can move the sector sharply.
On a structural level, demand for data centers and cell towers—driven by cloud computing, digital infrastructure, and artificial intelligence—has supported companies such as Equinix, Digital Realty Trust, and American Tower. Healthcare and senior-housing REITs like Welltower and Ventas benefit from demographic trends, while industrial landlords like Prologis tie into e-commerce and supply-chain adjustments. Risks include rate volatility, softness in traditional office properties, and refinancing pressures for leveraged owners.
Performance and Positioning Notes
Because both portfolios are anchored by similar mega-cap REITs, their returns have moved closely together in recent periods. Data-center, tower, and healthcare REITs have provided consistent leadership, supporting both funds. IYR’s inclusion of tower operators and real estate services companies offers some differentiation, while FRI’s wider list of smaller REITs adds name-level detail but keeps concentration in pure property owners. On a positioning basis, IYR delivers deeper liquidity and tighter trading characteristics that matter for larger or more active allocations. FRI’s broader holdings count provides additional name diversification, though both remain top-heavy, with roughly half their assets in the ten largest positions.
Using AI Tools in My Research
In my own analysis, I often turn to Tickeron’s AI Screener when comparing ETFs like these. The tool helps me quickly filter by industry, holdings overlap, cost metrics, and liquidity factors, which makes it easier to weigh the trade-offs between options such as FRI and IYR without manually sorting through dozens of data points. It has become a regular part of how I refine ideas before reaching conclusions.
Tickeron AI Verdict
Based on the structural factors outlined above, Tickeron’s AI currently favors IYR over FRI. IYR offers a lower expense ratio (0.37% versus 0.50%), substantially greater liquidity and scale, and a broader real estate sector footprint that captures tower, data-center, and services exposure alongside core REITs. While FRI provides more name-level diversification, its higher cost and thinner trading volume represent relative drawbacks. IYR’s combination of cost efficiency, liquidity, and diversified thematic exposure suggests it is the more robust core vehicle for most investors seeking U.S. real estate exposure, though the outcome remains probabilistic and subject to evolving market conditions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
FRI in upward trend: price rose above 50-day moving average on October 29, 2026
FRI moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend. In 38 of 43 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FRI's RSI Oscillator exited the oversold zone, 21 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on FRI as a result. In 68 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.
The Moving Average Convergence Divergence (MACD) for FRI just turned positive on October 09, 2026. Looking at past instances where FRI's MACD turned positive, the stock continued to rise in 34 of 45 cases over the following month. The odds of a continued upward trend are 76%.
The 10-day moving average for FRI crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 82%.
Following a +1.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where FRI advanced for three days, in 257 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FRI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
FRI broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FRI entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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