ETF Evaluator:
Fidelity Real Estate Income ETF ()
Follow This ETF
(as of Nov 13)
Best Performing in Miscellaneous Allocation Over the Last Year
| 2.5% | Fidelity Real Estate Income ETF (FREI) |
| 0.7% | CYBER HORNET S&P500 Bitcoin 75/25StgyETF (BBB) |
| -0.1% | Miscellaneous Allocation () |
| -0.6% | Prospera Income ETF (THRV) |
| -2.9% | Calamos Nasdaq® Equity & Income ETF (CANQ) |
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Risk
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ETF Details
Fidelity Real Estate Income ETF Overview
Fidelity Real Estate Income ETF (FREI) is an actively managed Allocation Miscellaneous Allocation exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2026.
The investment seeks higher than average income; as a secondary objective, the fund also seeks capital growth.
The fund is normally investing at least 80% of assets in debt and income-producing equity securities of companies principally engaged in the real estate industry and other real estate related investments. Debt securities include corporate bonds, government securities (including treasury securities), repurchase agreements, money market securities, mortgage and other asset-backed securities, loans and loan participations, and other securities, such as hybrids and synthetic securities, believed to have debt-like characteristics.
About Fidelity Real Estate Income ETF (FREI)
There are 2 members of the management team with an average tenure of 3.88 years: Bill Maclay (2019) and Matthew Torchia (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 5 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100%, MSCI REIT Preferred index with a weighting of 25%, Bloomberg US CMBS ex AAA TR USD index with a weighting of 15%, FTSE Nareit All REITs TR index with a weighting of 20% and ICE BofA US Real Estate TR USD index with a weighting of 40%. Fidelity Real Estate Income ETF has 592 securities in its portfolio. The top 10 holdings constitute 14.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Fidelity Real Estate Income ETF is part of the Allocation global asset class and is within the Allocation ETF group. Fidelity Real Estate Income ETF has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 22.9% There is 0.0% allocated to foreign stock, and 10.8% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 62.5% (62.3% domestic bond, 0.2% foreign bond and 0.0% convertible bond). Fidelity Real Estate Income ETF has 3.4% of the portfolio in cash.
Assets Under Management
The fund has $50 million in total assets, which is above the $43 million average for the Miscellaneous Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FREI Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Real Estate Income ETF expense ratio is average compared to funds in the Miscellaneous Allocation category. Fidelity Real Estate Income ETF has an expense ratio of 0.57%, which is 32% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Real Estate Income ETF has a portfolio turnover rate of 16%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 92% for the Miscellaneous Allocation category.
Recently, in the month of October 2026, Fidelity Real Estate Income ETF returned 0.2%, which earned it a grade of C, as the Miscellaneous Allocation category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Fidelity Real Estate Income ETF has a trailing yield of 0.00%, which is below the 4.17% category average.
The fund normally distributes its income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Fidelity Real Estate Income ETF Grades
Year to date, the ETF has returned 1.4%, 1.8 percentage points worse than the category, which translates into a grade of D. The fund has returned 2.5% over the past year (grade of A), 9.1% over the past three years (grade of A) and 2.3% per year over the past five years (grade of A) and 5.0% per year over the past 10 years (grade of A).
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FREI Trailing NAV Total Returns Data as of 10/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FREI Return (NAV) | 0.2% | -2.9% | 2.5% | 9.1% | 2.3% | 5.0% |
| FREI Return (Price) | 0.4% | -3.0% | na | na | na | na |
| NAV +/- Price Return | -0.199% | 0.093% | na | na | na | na |
| Miscellaneous Allocation Avg | -0.4% | 0.3% | -0.1% | 9.1% | 2.3% | 5.0% |
| FREI Grade (NAV) | C | F | A | A | A | A |
| +/- Category (NAV) | 0.6% | -3.2% | 2.6% | 0.0% | 0.0% | 0.0% |
| FREI Tax-Cost Ratio | na | na | na | na | na | na |
FREI Annual NAV Total ReturnsData as of 10/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FREI Return (NAV) | 1.4% | 7.2% | 7.9% | 9.3% | -14.5% | 18.9% | -1.1% | 17.9% | -0.6% | 7.3% | 10.2% |
| FREI Return (Price) | na | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | na | na | na | na | na | na | na | na | na | na | na |
| Miscellaneous Allocation Avg | 3.2% | 9.4% | 23.5% | 9.3% | -14.5% | 18.9% | -1.1% | 17.9% | -0.6% | 7.3% | 10.2% |
| FREI Grade (NAV) | D | F | F | A | A | A | A | A | A | A | A |
| +/- Category | -1.8% | -2.3% | -15.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Risk Measures | |
| Beta: | 0.65 |
| R-Squared: | 78% |
| Standard Deviation: | 6.5% |
| Category Risk Index: | 1.00 |
| Category Risk Rating: | High |
| Total Risk Index: | 0.53 |
| Total Risk Rating: | Below Average |
| Portfolio Characteristics | |
| Yield: | -- |
| Total Assets: | $ 4,196 Mil |
| Share Class Assets: | $ 51 Mil |
| Turnover: | 16.0% |
| Expense Ratio: | 0.57% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Universal TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 7.7 years | |||
| Average Tenure: 3.9 years | |||
| Managers (Year): Maclay Bill (2019), Torchia Matthew (2026) | |||
Portfolio Composition (as of 10/30/26)
| # of Holdings: | 592 |
| % in Top 10 Holdings: | 14.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.2% |
Portfolio Allocation |
|
| Domestic Stock: | 22.9% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 10.8% |
| Domestic Bond: | 62.3% |
| Foreign Bond: | 0.2% |
| Convertible Bond: | 0.0% |
| Other: | 0.5% |
| Cash: | 3.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Fidelity Investments |
| Phone Number: | 202-371-8300 |
| Website: | www.institutional.fidelity.com |
| Inception Date: | June 16, 2026 |
Expenses and Fees
| Expense Ratio (%): | 0.57% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.84% |
