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FRI - ETF AI Analysis

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FRI

First Trust S&P REIT Index Fund (FRI)

Rating:68Neutral
Price Target:
FRI, the First Trust S&P REIT Index Fund, earns a solid overall rating mainly because its largest positions, like Welltower and Prologis, show strong financial performance, strategic growth plans, and generally stable trading trends. Other sizable holdings such as Equinix, Simon Property Group, and Digital Realty also support the fund with good fundamentals and positive earnings commentary, though concerns about high valuations, leverage, and some bearish technical signals in names like Iron Mountain slightly weigh on the rating. The main risk factor is that the fund is concentrated in REITs, so it is heavily exposed to real estate sector conditions, interest rates, and valuation swings across this single asset class.
Positive Factors
Leading REIT Holdings
The fund’s largest positions are in well-known, established real estate companies that have generally shown steady to strong performance this year.
Solid Year-to-Date Results
The ETF has delivered positive year-to-date returns, indicating that its portfolio has held up reasonably well in the current market.
Targeted Real Estate Exposure
With most assets in U.S. real estate, the fund offers focused access to the REIT market for investors seeking income and property-related exposure.
Negative Factors
High Sector Concentration
Almost all of the ETF is invested in real estate, so it can be hit hard if the property or REIT market weakens.
Limited Geographic Diversification
The fund is heavily focused on U.S. companies, offering little protection if the U.S. real estate market faces challenges.
Above-Average Expense Ratio
The ETF’s fee is relatively high for a passive index fund, which can slowly reduce investors’ net returns over time.

FRI vs. SPDR S&P 500 ETF (SPY)

FRI Summary

FRI is an ETF that follows the S&P United States REIT Index, giving you broad exposure to U.S. real estate through Real Estate Investment Trusts (REITs). It holds companies that own and manage properties like apartments, warehouses, data centers, malls, and storage facilities. Well-known holdings include Prologis and Equinix. Investors might consider FRI for diversification and the potential for regular income, since many REITs pay steady dividends from rent. However, because it is heavily focused on real estate, its value can go up and down with property markets, interest rates, and the overall economy.
How much will it cost me?The First Trust S&P REIT Index Fund (FRI) has an expense ratio of 0.49%, meaning you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund that tracks a specialized index, requiring more management compared to broad-market passive funds.
What would affect this ETF?The First Trust S&P REIT Index Fund (FRI) could benefit from stable or declining interest rates, as lower borrowing costs often support real estate investments and REIT profitability. Additionally, strong demand for commercial and industrial properties in the U.S. may drive growth for top holdings like Prologis and Equinix. However, rising interest rates or economic downturns could negatively impact property values and rental income, while regulatory changes in the real estate sector might pose challenges for REITs.

FRI Top 10 Holdings

FRI is firmly planted in U.S. real estate, with a heavy tilt toward big REIT names rather than a broad global mix. Welltower and Ventas, both tied to senior housing and healthcare properties, have been relatively steady pillars, helping to support the fund. On the growthier side, data-focused landlords like Equinix, Digital Realty, and Iron Mountain have been rising, giving the ETF a quiet tech-flavored boost. Offsetting that strength, retail and storage giants like Simon Property and Public Storage have been lagging lately, acting as a bit of a drag on overall momentum.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Welltower11.39%$17.34M$137.95B28.26%
77
Outperform
Prologis9.99%$15.21M$125.75B18.60%
76
Outperform
Equinix4.79%$7.29M$96.31B19.99%
73
Outperform
Simon Property4.77%$7.27M$60.61B12.05%
70
Outperform
Digital Realty4.72%$7.19M$61.92B23.39%
69
Neutral
Realty Income4.66%$7.09M$57.05B7.05%
70
Outperform
Public Storage3.50%$5.34M$47.54B-9.36%
73
Outperform
3.37%$5.14M
Ventas3.24%$4.94M$39.77B18.06%
68
Neutral
Iron Mountain2.42%$3.69M$30.22B17.55%
55
Neutral

FRI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.92
Negative
100DMA
28.17
Positive
200DMA
27.59
Positive
Market Momentum
MACD
-0.31
Positive
RSI
43.48
Neutral
STOCH
18.05
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FRI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 28.91, equal to the 50-day MA of 28.92, and equal to the 200-day MA of 27.59, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 18.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRI.

FRI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$152.27M0.49%
68
Neutral
$993.74M0.63%
74
Outperform
$784.07M0.48%
70
Outperform
$446.88M0.50%
68
Neutral
$251.89M0.35%
60
Neutral
$232.85M0.68%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FRI
First Trust S&P REIT Index Fund
28.46
1.60
5.96%
FXN
First Trust Energy AlphaDEX Fund
REZ
iShares Residential and Multisector Real Estate ETF
JPRE
JPMorgan Realty Income ETF
KBWY
Invesco KBW Premium Yield Equity REIT ETF
IYRI
NEOS Real Estate High Income ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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