Advertisement
FRI vs IYR
Which ETF would AI Choose? First Trust S&P REIT Index Fund (FRI) vs. iShares U.S. Real Estate ETF (IYR)
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.
Introduction
Real estate is one of the most rate-sensitive corners of the equity market, making sector-focused ETFs a popular tool for investors seeking income, inflation hedging, or tactical positioning. First Trust S&P REIT Index Fund (FRI) and iShares U.S. Real Estate ETF (IYR) sit in the same category but are not identical products. FRI is a concentrated play on publicly traded equity REITs, while IYR casts a wider net across the entire U.S. real estate sector. Comparing their structure, cost, and exposure profile helps investors decide which wrapper best matches their goals in the current market environment.
First Trust S&P REIT Index Fund (FRI) Overview
FRI is a passively managed fund that seeks to track the S&P United States REIT Index, a market-capitalization-weighted benchmark of U.S.-domiciled equity REITs (companies that own and operate income-producing real estate and pass most income to shareholders). The fund generally invests at least 90% of its assets in index securities and holds roughly 126 REITs, excluding cash.
Its portfolio is dominated by large-cap names, led by Welltower (WELL) near 12%, Prologis (PLD) near 9.5%, and Simon Property Group (SPG), Equinix (EQIX), and Digital Realty Trust (DLR) each around 4–5%. Other notable positions include Realty Income (O), Public Storage (PSA), and Ventas (VTR).
Sector allocation is essentially 100% real estate, spanning specialized, industrial, retail, residential, healthcare, data-center, and self-storage REITs. The fund carries a net expense ratio of 0.50% and has traded since 2007.
iShares U.S. Real Estate ETF (IYR) Overview
IYR is a passively managed fund that tracks the Dow Jones U.S. Real Estate Capped Index, which measures the broad U.S. real estate sector rather than REITs alone. As a result, it includes not only equity REITs but also real estate operating, development, and services companies, along with some mortgage REIT exposure. The fund typically holds about 62–64 securities.
Top holdings overlap heavily with FRI, led by Welltower (WELL) and Prologis (PLD). However, IYR adds differentiated positions in tower REITs such as American Tower (AMT) and Crown Castle (CCI), and in real estate services leader CBRE Group (CBRE), alongside Simon Property Group (SPG), Equinix (EQIX), and Digital Realty Trust (DLR).
IYR is the larger and lower-cost option, with an expense ratio of 0.37% and assets under management (AUM, the total market value of fund assets) in the multi-billion-dollar range.
Industry and Thematic Backdrop
Both ETFs are shaped by the same macro forces. Real estate is highly sensitive to interest rates, which influence financing costs, property valuations (capitalization rates), and the relative appeal of REIT dividends versus bonds. In recent market cycles, expectations around monetary policy have driven sharp swings in the sector.
Structurally, demand for data centers and cell towers — fueled by cloud computing, digital infrastructure, and artificial intelligence — has supported names such as Equinix, Digital Realty Trust, and American Tower. Healthcare and senior-housing REITs like Welltower and Ventas benefit from an aging population, while industrial and logistics landlords like Prologis are tied to e-commerce and supply-chain reshoring. Key risks include rate volatility, weakness in traditional office assets, and refinancing pressure for leveraged property owners.
Performance and Positioning Comparison
Because both funds are led by a similar set of mega-cap REITs, their returns have tracked closely over recent weeks and months. Data-center, tower, and healthcare REITs have been consistent relative leaders, lifting both portfolios. IYR's inclusion of tower operators and real estate services companies has provided modest differentiation, while FRI's broader roster of smaller REITs adds granularity but slightly higher concentration in pure property owners.
On a relative positioning basis, IYR offers meaningfully deeper liquidity and tighter trading characteristics, which can matter for larger positions and active rebalancing. FRI's wider holdings count offers greater name-level diversification, though both funds remain top-heavy, with roughly half of assets in their ten largest positions.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of securities using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities far more efficiently than manual screening. Explore the AI Screener to refine your real estate ETF research today.
Tickeron AI Verdict
Based on observable structural factors, Tickeron's AI would currently favor 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 are 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 is probabilistic and subject to changing 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.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FRI is a Buy and IYR is a Hold.
FRI's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for FRI turned positive on October 09, 2026. Looking at past instances where FRI's MACD turned positive, the stock continued to rise in 39 of 45 cases over the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
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%.
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.
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 +2.77% 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%.
The Aroon Indicator entered an Uptrend today. In 242 of 309 cases where FRI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The 10-day RSI Indicator for FRI moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In 24 of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for FRI moved below the 200-day moving average on November 05, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 04, 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.
IYR's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for IYR turned positive on October 09, 2026. Looking at past instances where IYR's MACD turned positive, the stock continued to rise in 41 of 47 cases over the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on IYR as a result. In 66 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 78%.
IYR 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.
The 10-day moving average for IYR crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 18 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 67%.
Following a +1.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYR advanced for three days, in 255 of 309 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
The Aroon Indicator entered an Uptrend today. In 224 of 298 cases where IYR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.
Bearish Trend Analysis
The 10-day RSI Indicator for IYR moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 24 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for IYR moved below the 200-day moving average on October 22, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYR 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 85%.
IYR broke above its upper Bollinger Band on November 04, 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.
| FRI | IYR | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 86% |
| Stochastic ODDS (%) | 1 day ago 72% | 1 day ago 77% |
| Momentum ODDS (%) | 1 day ago 82% | 1 day ago 78% |
| MACD ODDS (%) | 1 day ago 87% | 1 day ago 87% |
| TrendWeek ODDS (%) | 1 day ago 83% | 1 day ago 82% |
| TrendMonth ODDS (%) | 1 day ago 80% | 1 day ago 79% |
| Advances ODDS (%) | 3 days ago 81% | 5 days ago 83% |
| Declines ODDS (%) | 10 days ago 81% | 10 days ago 85% |
| BollingerBands ODDS (%) | 1 day ago 76% | 1 day ago 89% |
| Aroon ODDS (%) | 1 day ago 78% | 1 day ago 75% |
Advertisement
FRI and
Correlation & Price change
A.I.dvisor indicates that over the last year, FRI has been closely correlated with KIM. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if FRI jumps, then KIM could also see price increases.
IYR and
Correlation & Price change
A.I.dvisor indicates that over the last year, IYR has been closely correlated with CUBE. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if IYR jumps, then CUBE could also see price increases.
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| DNP | 10.02 | -0.12 | -1.18% |
| DNP Select Income Fund | |||
| BDCX | 18.94 | -0.31 | -1.62% |
| ETRACS Quarterly Pay 1.5x Leveraged MarketVector BDC Liquid Index ETN (BDCX) | |||
| CIK | 2.33 | -0.04 | -1.69% |
| Credit Suisse Asset Management Income Fund | |||
| BASG | 26.73 | -1.44 | -5.11% |
| Brown Advisory Sustainable Growth ETF (BASG) | |||
| NYSX | 22.56 | -1.61 | -6.66% |
| Global X NYSE 100 ETF (NYSX) | |||