FRI - ETF AI Analysis

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First Trust S&P REIT Index Fund (FRI)

Rating:68Neutral

Price Target:―

FRI, the First Trust S&P REIT Index Fund, has a solid overall rating driven mainly by large positions in high-quality real estate names like Welltower and Prologis, which benefit from strong financial performance, strategic growth plans, and supportive earnings calls. Other sizable holdings such as Equinix, Public Storage, and VICI Properties also add strength through robust growth prospects and dividends, but concerns about high valuations, some bearish technical trends, and pockets of market risk (like Las Vegas exposure and rising costs) temper the fund’s rating. Overall, the main risk is that many of its key REIT holdings appear potentially overvalued and show mixed technical signals, which could increase volatility.

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)

AUM163.50M

RegionNorth America

Expense Ratio0.49%

Beta0.53

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield2.77%

Asset ClassEquity

Index TrackedS&P United States REIT

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume26,396

30 Day Avg. Volume32,700

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

31.01

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering133

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 a pure U.S. real estate play, and its story is being written by a handful of heavyweight REITs. Healthcare-focused names like Welltower and Ventas are helping steer the fund higher, with steady to rising momentum as senior housing demand builds. Prologis adds strength from the industrial and logistics side, while Realty Income keeps the income engine humming. On the flip side, data-center giants like Equinix and Digital Realty have shown more mixed, sometimes lagging moves, occasionally putting a speed bump in the fund’s otherwise solid REIT-driven ride.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WELL	Welltower	9.56%	$15.54M	$142.85B	38.79%	77 Outperform
PLD	Prologis	8.77%	$14.25M	$129.69B	12.85%	76 Outperform
EQIX	Equinix	6.29%	$10.21M	$94.12B	2.60%	73 Outperform
O	Realty Income	4.72%	$7.68M	$59.59B	18.88%	70 Outperform
DLR	Digital Realty	4.64%	$7.53M	$61.94B	9.76%	69 Neutral
SPG	Simon Property	4.44%	$7.21M	$62.50B	3.45%	70 Outperform
	―	4.05%	$6.59M	―	―	―
PSA	Public Storage	3.68%	$5.97M	$51.30B	-1.69%	73 Outperform
VTR	Ventas	3.19%	$5.18M	$41.44B	28.06%	68 Neutral
IRM	Iron Mountain	2.50%	$4.05M	$31.33B	11.10%	55 Neutral

FRI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

27.86

Positive

100DMA

27.71

Positive

200DMA

27.24

Positive

Market Momentum

MACD

0.47

Negative

RSI

76.96

Negative

STOCH

85.78

Negative

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 28.45, equal to the 50-day MA of 27.86, and equal to the 200-day MA of 27.24, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 76.96 is Negative, neither overbought nor oversold. The STOCH value of 85.78 is Negative, 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
FRI	―	―	$163.50M	0.49%	―
REZ	―	―	$820.87M	0.48%	―
JPRE	―	―	$493.77M	0.50%	―
KBWY	―	―	$271.03M	0.35%	―
IYRI	―	―	$219.21M	0.68%	―
RSPR	―	―	$102.27M	0.40%	―

Performance Comparison

FRI

First Trust S&P REIT Index Fund

29.81

2.51

9.19%

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

―

RSPR

Invesco S&P 500 Equal Weight Real Estate 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.

Disclaimer

This 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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